LIVE: We will work towards inflation target of 4%, says RBI Governor

Catch all the updates of the live address by Reserve Bank of India's Governor Shaktikanta Das on the decision by the Monetary Policy Committee on repo rate

We will work towards inflation target of 4%, the RBI Governor said in the press conference. 

MPC uninanimously decided to keep policy repo rate unchanged at 6.5%.

The real GDP growth projected at 6.5 % for FY24 keeping the global geopolitical and financial uncertainity in mind the RBI Governor said.

GDP projection for FY24: Q1-7.8%, Q2- 6.2%, Q3-6.1%, and Q4- 5.9%

He added that war against inflaition has to continue, and expressed confidence to bring inflation down to target. 

Inflation has softened from previous year but remains over the mandated threshhold. The disinflation is likely to be gradual and protracted, given the rigidity of core inflation pressures, Das asserted.

The Reserve Bank of India Governor Shaktikanta Das will announce the outcome of the Monetary Policy Committee (MPC)

meetings at 10 am today, followed by a press conference at noon.

The RBI may announce a hike in repo rate today after a three-day meeting of its Monetary Policy Committee.

Finance ministry officials are of the view that the RBI should prioritise bringing inflation down within the mandated range of 2-6 per cent, even if economic growth is adversely impacted in the process.
 

“The central bank should focus on combating inflation until it is within the tolerance level of 6 per cent, even if it pares (down) growth,” a senior government official told Business Standard.

RBI started its Monetary Policy Committee meeting on April 3, April 5 and April 6.

There are total six bi-monthly reviews of monetary policy by the central bank in a year. 
 

The last MPC meet of the RBI  was in early February, in which the central bank decided to raise the benchmark rate by 25 basis points to 6.5 per cent in order to manage inflation.

Today, RBI is expected to hike interest rate by 25 bps to fight inflation

 

12:15 PM

It's a pause not a pivot, says RBI Governor on MPC decision on repo rate

Its pause not a pivot, says RBI Governor on MPC decision repo rate.

12:12 PM

We will work towards the target for 4%, says RBI Governor

Our target is 4 per cent for inflation. We will work towards the target for 4 per cent. We will wait and watch and act when time arrives, the RBI governor said on the global uncertainities and inflation target, the governor said. 

12:06 PM

We will be watchful and won't hesitate further action if required, says RBI governor on repo rate pause

We will be watchful and won't hesitate further action if required, RBI governor on repo rate pause. 

10:28 AM

Sudden output cut by Opec+ another example of international volatility, says Das

Inflation has softened from previous year but remains over the mandated threshhold. The disinflation is likely to be gradual and protracted, given the rigidity of core inflation pressures. 

While we kept the rate unchanged, it is important to note that this decision was taken on the basis of Macroeconomic and financial condition uptill today, he added. 

10:23 AM

War against inflaition has to continue, confident to bring inflation down to target: RBI Guv Das

Adverse climatic situation are risk to future inflation trajactory, Das highlighted. 

Inflation is projected to moderate to 5.2% for FY 23-24, with Q1 at 5.1%, Q2 at 5.4%, Q3 at 5.5 % and Q4 at 5.2 %, with risks equally balanced, he said. 

10:14 AM

The real GDP growth projected at 6.5 % for FY24, says RBI Governor

The real GDP growth projected at 6.5 % for FY24 keeping the global geopolitical and financial uncertainity in mind the RBI Governor said.

Q1-7.8%, Q2- 6.2%, Q3-6.1%, and Q4- 5.9%

10:06 AM

Economic activity remains resilient, CPI increased, core inflation elevated: Das

The year began on promising note. However, the global economy is facing fresh turmoil due to international banking crisis since March, RBI governor said in his opening statement. 

Economic activity remains resilient, CPI increased, core inflation elevated, he added. 

The current policy rate is accomodative keeping in mind the current level of inflation, Das said.

10:05 AM

MPC uninanimously decided to keep policy repo rate unchanged at 6.5 %: RBI Governor

MPC uninanimously decided to keep policy repo rate unchanged at 6.5 %.

 

The decision to pause is for this meet only, Das said.

9:39 AM

India's core inflation remained sticky above 6% in recent months

Raising interest rates is a monetary policy instrument that helps to supress the demand in the economy and thus helps in reducing inflation. Core inflation — which excluded volatile food and fuel inflation and a key concern for the RBI — has remained sticky above 6 per cent in recent months.

The RBI has a mandate to keep retail inflation at 4 per cent within a band of 2 percentage points on either side.

9:26 AM

Previous rate hikes by RBI's Monetary Policy Committee

The RBI raised the rates by 25 basis points In February 2023. In December 2022, the hike was of 35 bps, and sharp 50 bps rate hikes in each of the three meetings in June, August and September 2022. 

9:19 AM

RBI likely to raise repo rate to highest level since April 2016 to 6.75%

According to Reuters, 49 of 62 economists say that RBI would lift its repo rate by 25 basis points to a seven-year high of 6.75 per cent at the conclusion of its three-day meeting on April 6. The RBI has already raised rates by 250 basis points since May last year. 

If another rate hike is announced today, it will take the repo rate to the highest level since April 2016. 

 

8:17 AM

MPC likely to lift policy rate by another 25 basis points to 6.75%

The monetary policy committee (MPC) is likely to lift policy rate by another 25 basis points (bps) to 6.75 per cent before hitting pause.

 

Retail inflation — the main yardstick of the central bank for policy-making purposes — eased only marginally in February to 6.44 per cent, from 6.52 per cent in January.

 

8:08 AM

RBI should prioritise combating inflation, says Finance Ministry officials

The RBI should focus on combating inflation until it is within the tolerance level of 6 per cent, even if it pares (down) growth, a senior government official told Business Standard.