Google trend - RBI Monetary Policy June 2024

RBI Monetary Policy June 2024 - 10 things to know with detail

• Repo Rate: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 4% in its June 2024 monetary policy review. The repo rate is the rate at which the central bank lends money to commercial banks.
• Reverse Repo Rate: The reverse repo rate has also been kept unchanged at 3.35%. This is the rate at which the RBI borrows money from commercial banks.
• Inflation Target: The RBI has maintained its inflation target at 4% with a tolerance band of +/- 2%. This means that the central bank aims to keep inflation within the range of 2% to 6%.
• GDP Growth Forecast: The RBI has revised its GDP growth forecast for the current fiscal year to 7.8%. This is higher than the previous forecast of 7.2%.
• Liquidity Measures: The RBI has announced measures to ensure adequate liquidity in the financial system. This includes conducting open market operations (OMOs) and providing liquidity support to banks through various mechanisms.
• Financial Stability: The central bank has expressed concerns about the rising levels of non-performing assets (NPAs) in the banking sector. It has emphasized the need for banks to strengthen their balance sheets and improve their asset quality.
• Digital Payments: The RBI has reiterated its commitment to promoting digital payments in the country. It has announced measures to enhance the safety and security of digital transactions and reduce the cost of digital payments.
• Regulatory Measures: The RBI has announced various regulatory measures to strengthen the financial system and enhance the resilience of banks and financial institutions. This includes measures to improve corporate governance, risk management, and compliance standards.
• Exchange Rate Management: The RBI has reiterated its commitment to maintaining a stable exchange rate. It has announced measures to intervene in the foreign exchange market as needed to prevent excessive volatility in the rupee.
• Policy Stance: The RBI has maintained an accommodative policy stance, signaling its commitment to support growth while keeping inflation under control. The central bank has indicated that it stands ready to take further action as needed to support the economy.