RBI Policy Meet 2024-25: RBI Governor’s Major Announcements
The Meeting of the MPC (Monetary Policy Committee)or the RBI Policy Meet that began on February 6 and ended on February 8 made five major announcements. The decisions were informed to the Press by RBI Governor Shankti Kant Das
The Big Business of the Country is keenly looking at the decisions taken by the Monetary Policy Committee because their business is to be affected by RBI’s decision. On the other hand, there is a common man who is not keen on it because he is unaware of how it affects his life. The announcement by the RBI governor after the RBI Policy Meet will be done within a few minutes but the effect of the announcement is one year or even longer.
Coming Back to the Big Business, the owner’s eyes are glued to the Television screen with no worry about other things course they do not have to worry, unlike common people with Household chores. Minutes later the Governor begins the announcements to the Press. He says
“Keeping in mind the macroeconomic trends of the present and future the RBI has decided to keep the repo rate under the Liquidity adjustment facility (LAF) the decision was taken on (February 8) at the RBI Policy meeting. This means the repo rate will remain at 6.50 per cent. Speaking further the governor says the MPC decision is planned with the objective of inflation reduction and also without disturbing the growth of the country. This is done by focusing on the withdrawal of accommodation.”
After a few seconds, the Governor begins, ‘As part of the RBI policy meeting for the financial year 2024-2025 I will make a few announcements.’ “The Estimated GDP growth for the year 2024-2025 is 7 per cent which is a little low compared to the last year. The rural demand is bouncing back and the Urban demand is strong. Investment is rising due to an increase in capital expenditure.”
He sips water from the bottle which is kept in front of him and continues
“For the Financial year 2024-2025, assuming a normal monsoon the retail inflation is 4.5 or the Consumer Price Index. For the first quarter, the inflation will be at 5% in Q1 in Q2 it will be 4%, in Q3 it will be at 4.6%, and in Q4 it will be 4.7%“
Correcting his throat he speaks again
The Governor said at the RBI Policy meeting “The Vulnerability indicators said India can withstand any external influence, in other words, the war, political instability, and economic collapse in other countries won’t affect India. The foreign exchange reserves are $622.5 billion on February 2.“
sitting straight he then says
“Additional factor authentication (AFA) was introduced by the RBI and several other mechanisms too for the authentication of Digital Transactions. The SMS-based OTP became popular, the RBI has Proposed a principal-based framework for the authentication of digital transactions.”
These are the five major announcements made by the governor as part of the RBI policy meeting says the anchor of a Popular TV news channel
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1. What is the objective of the RBI policy meeting?
The Monetary Policy Committee was formed under the RBI Act of 1934, its duty is to set the benchmark for the repo rates to control inflation. The Monetary Policy Committee meets before the financial year and makes several decisions
2. What is the repo rate has this been changed or not?
The repo rate is at 6.50%, rbi has kept it the same for the sixth time.
3. What is the GDP growth estimation as per the RBI?
For the Financial year 2024-2025, the GDP growth is 7% as per the estimates of RBI