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RBI MPC Meeting: RBI has taken a big decision in the Monetary Policy Committee meeting after the pace of economic growth of the country has slowed down. RBI has reduced the repo rate from 4.50 percent to 4 percent. This decision will help in increasing liquidity in the banking system so that banks will be able to distribute more and more loans to accelerate growth. However, RBI has not given relief from expensive EMI. The Central Bank has not made any change in its policy rate i.e. repo rate. The repo rate has been maintained at 6.50 percent. There has been no change in the repo rate since February 2023.
Along with controlling inflation, growth is also necessary
The three-day meeting of the Monetary Policy Committee of RBI started on December 4 and the decisions taken in the meeting have been announced today. RBI Governor said that our aim is to control inflation and keep prices stable while maintaining growth. RBI Governor said that it is most important to keep prices stable but at the same time it is also important to maintain growth and this is also said in the RBI Act.
Demand is decreasing in cities and areas
On the decline in GDP growth rate, the RBI Governor said, the reason for the decline in economic growth rate is the decline in industrial production. Industrial growth in the first quarter of the current financial year was 7.2 percent, which came down to 2.1 percent in the second quarter. He said, the manufacturing growth rate has decreased. RBI Governor said, demand has increased in rural areas but demand is slowing down in urban areas.
RBI reduced GDP estimate
RBI has reduced its growth rate estimate. In the financial year 2024-25, RBI has estimated the GDP growth rate to be 6.6 percent, which was earlier 7.2 percent.
