On April 5, the Reserve Bank of India announced its decision to maintain the policy rate unchanged for the seventh consecutive time, with Governor Shaktikanta Das emphasizing the institution’s vigilance. Here are the key highlights from his speech:
- The MPC reaffirms its dedication to aligning inflation with the RBI’s 4 percent target, as stated by Das.
- The global debt-to-GDP ratio remains elevated, potentially impacting emerging economies, according to the RBI Governor.
- The MPC reiterates its focus on transitioning away from the accommodative stance, as highlighted by Governor Das.
- Rural demand is picking up, with consumption anticipated to bolster economic growth in FY25, per the RBI Governor.
- Moderating inflationary pressures and sustained growth in manufacturing and services sectors are expected to drive private investment, as noted by Governor Das.
- India’s GDP growth for FY25 is projected at 7 percent, according to Governor Shaktikanta Das.
- Global growth remains robust, but recent increases in crude oil prices warrant close monitoring, highlighted by the RBI Governor.
- Ongoing geopolitical tensions pose upward risks to commodity prices, as acknowledged by Governor Das.
- Prolonged high food inflation could disrupt the anchoring of inflation expectations, cautioned the RBI Governor.
- The RBI retains its inflation forecast at 4.5 percent, with balanced risks assuming a normal monsoon for the current fiscal.
- The RBI commits to maintaining nimble and flexible liquidity management practices, according to Governor Shaktikanta Das.
- Ensuring enduring price stability remains a primary objective, emphasized the RBI Governor.
- The Indian rupee has exhibited minimal volatility among emerging market currencies, noted Governor Das.
- Banks, NBFCs, and other financial institutions must prioritize governance, urged the RBI Governor.
- Monetary policy transmission remains a work in progress in the credit market, according to Governor Das.
- The RBI will soon introduce a scheme for trading sovereign green bonds at the International Financial Services Centre, announced Governor Das.
