In its monetary policy announcement on Firday, the Reserve Bank of India (RBI) has opted to maintain the status quo by keeping its benchmark repo rate unchanged for the fourth consecutive time. RBI Governor Shaktikanta Das announced the decision of the Monetary Policy Committee, emphasizing a policy stance of “withdrawal of accommodation.”
The central bank’s decision to keep the repo rate steady at 6.5% reflects a commitment to balancing macroeconomic stability and fostering inclusive growth amid ongoing economic challenges.
The RBI has maintained its projection for the real GDP growth rate at 6.5% for the financial year 2023-24, indicating optimism about India’s potential as a growth engine.
The inflation rate is projected to remain at 5.4%, with no change from earlier forecasts.
Governor Das emphasized that inflation remains a significant risk to economic growth, primarily due to uncertainties stemming from factors such as lower kharif sowing, reduced oil reserves, and volatile
Meanwhile, in September, the services sector in India witnessed remarkable growth, reaching its highest rate in 13 years. This surge was driven by robust demand conditions, resulting in increased business opportunities and a rise in employment numbers..
However, manufacturing operations in India experienced a decline in September, marking a five-month low. This decline has been attributed to a slower increase in new orders, which subsequently subdued production growth.