Anu Aggarwal, Head – Corporate Banking, Kotak Mahindra Bank
“Anu Aggarwal, Head – Corporate Banking, Kotak Mahindra Bank said, “RBI’s decision to hold the repo rate at 6.5% for the ninth consecutive time was on expected lines amid persistent inflationary pressures with June inflation coming in at 5.1%, and food in particular running away at 8.4%. We need to watch out for Fed action in September when a rate cut is near certain which will set the stage for our own likely cut by December. RBI’s commitment to inflation target of 4% while our GDP growth is on track I seems the right thing to do.”
Saurabh Mishra
CEO, Investment Landscape
Reserve Bank of India (RBI) Monetary Policy Aug 08, 2024
Repo Rate Decision
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Repo Rate: The RBI has maintained the repo rate at 6.5% for the last eight policy reviews since February 2023.
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Reasons: The decision is influenced by:
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Ongoing inflation
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High food prices
Inflation Target
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Centre’s Inflation Target:
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Set at 4%
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Upper tolerance limit: 6%
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Lower tolerance limit: 2%
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Current Inflation Statistics:
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June 2023 Retail Inflation: 5.08% (four-month high)
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June 2023 Food Inflation: 9.36%
Economic Growth
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RBI’s Economic Growth Goal:
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Expected growth rate for India: 7.2%
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India’s real GDP growth in FY24: 8.2%
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Status: Fastest growing economy globally
Announcement by Shaktikanta Das
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Decision Factors: The repo rate decision aligns with:
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Current economic conditions
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Global factors
Market Impact
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The policy announcement is not expected to significantly influence the market.
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Market focus:
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US jobs data
o
Recession fears in the US
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