RBI MPC Meet 2024: Repo Rate Unchanged at 6.5%, Raises GDP Growth Forecast to 7.2% for FY25
The Reserve Bank of India (RBI) decided to keep the benchmark repo rate unchanged at 6.5% for the eighth consecutive time. The decision was made by the six-member Monetary Policy Committee (MPC) led by RBI Governor Shaktikanta Das, with a 4:2 majority. The RBI maintained its stance of 'withdrawal of accommodation' and raised its GDP growth forecast for FY25 to 7.2% from the earlier projection of 7%. The inflation forecast for FY25 was retained at 4.5%.
Governor Das emphasized the RBI's commitment to price stability, noting that while India is on the right track concerning inflation, ongoing global geopolitical conflicts, supply chain disruptions, and commodity price volatility pose challenges. The central bank also plans to take further measures to regulate unsecured loans and ensure proper fee disclosures by regulated entities. Additionally, the RBI transferred ₹2.11 lakh crore to the government as a dividend and maintained a contingent reserve buffer of 6.5%.
Inflation and Growth Projections:
- Retail inflation reached an 11-month low in April 2024 at 4.83%, remaining within the RBI's tolerance band of 2-6%.
- The GDP growth forecast for FY25 has been raised from 7% to 7.2%, reflecting robust economic momentum.
- The inflation projection for FY25 is retained at 4.5%, with quarterly estimates provided: Q1 at 4.9%, Q2 at 3.8%, Q3 at 4.6%, and Q4 at 4.5%.
Policy Decisions:
- The MPC decided by a 4:2 majority to keep the policy repo rate unchanged at 6.5%. Consequently, the standing deposit facility (SDF) rate remains at 6.25%, and the marginal standing facility (MSF) rate and the bank rate at 6.75%.
- The RBI emphasized the need to remain vigilant against potential inflation risks, particularly from food prices, despite the favorable balance between inflation and growth.
- The central bank will continue its 'withdrawal of accommodation' stance to ensure the anchoring of inflation expectations.
Market and Economic Impact:
- The Sensex jumped 600 points following the announcement of the raised GDP growth forecast for FY25.
- The RBI transferred a record dividend of ₹2.1 lakh crore to the government for FY24, driven by exceptional interest earnings from its foreign investments.
Industry Reactions:
Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.

Mr. Yashank Wason, Managing Director, Royal Green Realty

Mr. Vipin Sharma, Founder & Chairman, Aarize Group

Mr. Manish Jaiswal, Group COO, Eldeco

Mr. Abhishek Trehan, Executive Director, Trehan Iris

Mr. Ashish Agarwal, Director, AU Real Estate

Mr. Sanjay Kumar Sinha, Founder and Managing Director, Chaitanya Projects Consultancy

Mr. Dharmendra Raichura – VP & Head of Finance at Ashar Group

Mr. Piyush Bothra, Co-Founder and CFO, Square Yards

Mr. Shrinivas Rao, FRICS, CEO, Vestian

Mr Ashwin Chadha, CEO, India Sotheby’s International Realty

Mr Vimal Nadar, Senior Director & Head of Research, Colliers India

Mr. Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt Ltd.
