RBI leaves policy rates unchanged, RBI Governor says war against inflation has to continue

MUMBAI: Delivering the bimonthly Monetary Policy Statement of the RBI through the RBI’s YouTube channel recently, the RBI Governor Shaktikanta Das has informed that the Monetary Policy Committee has decided unanimously to keep the policy repo rate unchanged at 6.50 per cent with readiness to act, should the situation so warrant. Consequently, the standing deposit facility (SDF) rate will remain unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at6.75percent.

The Governor observed that inflation is above the target and given its current level, the present policy rate can still be regarded as accommodative. Hence, the MPC decided to remain focused on withdrawalofaccommodation.

Noting that economic activity remains resilient amidst global volatility, the Governor informed that India’s real GDP growth for 2023-24 is projected at 6.5 per cent, with Q1 at 7.8 per cent; Q2 at 6.2 per cent; Q3 at 6.1percent;andQ4at5.9percent.

The Governor informed that CPI inflation is projected to moderate to 5.2 per cent for 2023-24; with Q1 at 5.1 per cent; Q2 at 5.4 per cent; Q3 at 5.4percent;andQ4at5.2percent.

Commenting on Monetary Policy, Mr. Rajiv Agarwal, Operating Partner (Infrastructure), Essar and Managing Director, Essar Ports said, “The decision of the ReserveBankofIndiatoincreasethe repo rate by 35 bps to 6.25% is a move thatwasanticipatedbythemarketand reflects that inflation has peaked out. This gives hope especially for the infrastructureindustry.Withimproved confidence and industry sentiments, there is a sense of optimism towards business outlook and demand growth. The GDP growth rate and the Indian Rupee has been resilient and shown stability,thustidingthroughtheglobal stormwithconfidenceandendurance. The commitment of RBI to constantly monitortheinflationdynamicswithout effectingthegrowthrateisreassuring fortheindustry.’’

FIEO welcomes the milestone achievement of USD 767 bn goods and services exports, amidst global headwinds: Dr A Sakthivel, President, FIEO

NEW DELHI: FIEO welcomes the milestone achievement ofUSD767bngoodsand services, amidst global headwinds during 2022-23. With this India’s goods exports hit a three-quarter high to cross USD 40 billion in March, 2023.

FIEO President, Dr A Sakthivel said that the country is making huge progress in various areas under the visionary and able leadership of

Hon'ble Prime Minister, Shri Narendra Modi ranging from social sectors to economy particularly exports.Headdedthatroughly40%of the additional GDP in 2022-23 was contributed by exports. Such spectacular feat has been possible due to the enabling and supportive eco system created by all the concerned ministries and departments,saidDrSakthivel.

FIEO Chief is confident of achieving the exports target of USD 2 tn by 2030. The timely guidance and support from the Hon'ble Commerce & Industry Minister, Shri Piyush Goyal, who constantly engaged with the trade and industry especially exporters and monitored their progress through frequent engagements, has helped the exporting community achieve this feat. Dr A Sakthivel reiterated that exports have now become a national priority,whichhashelpedinproviding furthermomentumtothesector.