RBI Maintains FY24 GDP Projection at 6.5 Percent

RBI Maintains FY24 GDP Projection at 6.5 Percent

VoM News Desk | October 6, 2023 | 10:30 AM IST | Breaking News | Follow on Google News

RBI Maintains FY24 GDP Projection at 6.5 Percent

RBI Maintains FY24 GDP Projection at 6.5 Percent

In a pivotal decision, the Reserve Bank of India (RBI) has announced its intent to maintain its key lending rate at 6.5% for the fourth consecutive time. The unanimous decision was reached during the central bank’s Monetary Policy Committee (MPC) meeting, as confirmed by RBI Governor Shaktikanta Das. This move suggests that loan interest rates are also likely to remain stable.

RBI Governor Das expressed concern regarding inflation as a significant risk to sustainable economic growth. He emphasized that the inflation outlook is shrouded in uncertainty due to various factors, including a decline in Kharif sowing for critical crops such as pulses and oilseeds, reduced reservoir levels, and fluctuations in global food and energy prices.

The decision to maintain the status quo on the lending rate underscores the central bank’s commitment to address economic challenges while closely monitoring inflationary pressures. As the RBI continues to navigate these complexities, it aims to strike a balance between supporting economic growth and mitigating inflation risks.

VoM News Desk

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