"Real GDP Growth For 2023-24 Is Projected At 6.5 Per Cent": Top 10 Quotes From RBI Governor Shaktikanta Das's Monetary Policy Statement

On the basis of an assessment of the current and evolving macroeconomic situation in the country the Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) at its meeting held today (October 6, 2023) decided to keep the repo rate unchanged at 6.50 per cent. While talking about the economic outlook of the country, RBI governor Shaktikanta Das said the real GDP growth for 2023-24 is projected at 6.5 per cent, with Q2 at 6.5 per cent, Q3 at 6.0 per cent, and Q4 at 5.7 per cent, with risks evenly balanced, taking several factors into consideration. He also said the real GDP growth for Q1:2024-25 is projected at 6.6 per cent.

The repo rate in India is the rate at which the RBI lends money to commercial banks in the country for a short-term period, typically for 1 to 28 days. The repo rate is one of the key monetary policy tools used by the RBI to control inflation and stabilize the economy.

Top 10 Quotes From RBI Governor Shaktikanta Das”s Monetary Policy Statement

1. “Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent.”
2. “The standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.”
3. “Real gross domestic product (GDP) posted a growth of 7.8 per cent year-on-year (y-o-y) in Q1:2023-24 (April-June), underpinned by private consumption and investment demand.”
4. “South-west monsoon rainfall recovered during September and ended 6 per cent below the long period average.”
5. “On the demand front, urban consumption is buoyant while rural demand is showing signs of revival.”
6. “CPI headline inflation surged by 2.6 percentage points to 7.4 per cent in July due to spike in vegetable prices, before moderating somewhat in August to 6.8 per cent.”
7. “The near-term inflation outlook is expected to improve on the back of vegetable price correction and the recent reduction in LPG prices.”
8. “Domestic demand conditions are expected to benefit from the sustained buoyancy in services, revival in rural demand, consumer and business optimism, the government’s thrust on capex, and healthy balance sheets of banks and corporates.”
9. “Domestic economic activity is holding up well and is expected to be boosted by festive consumption demand, pick up in investment intentions and improving consumer and business outlook. “
10. “Taking all these factors into consideration, real GDP growth for 2023-24 is projected at 6.5 per cent, with Q2 at 6.5 per cent, Q3 at 6.0 per cent, and Q4 at 5.7 per cent, with risks evenly balanced. Real GDP growth for Q1:2024-25 is projected at 6.6 per cent.”