Key takeaways from RBI's monetary policy statement

New Delhi: Cautioning that the fight against inflation is far from over, the Reserve Bank of India (RBI) on Thursday projected marginal easing in retail inflation to 5.2 per cent in the current fiscal.

Also, the central bank decided to keep key benchmark policy rate at 6.5 per cent even as inflation is trending above its tolerance level, PTI reported.

Here are key takeaways from RBI’s monetary policy statement:

1) Benchmark lending rate remains unchanged at 6.50 per cent.

2) The central bank has projected 6.5 per cent economic growth for 2023-24, compared to 6.4 per cent projected in February

3) Inflation to be 5.2 per cent in 2023-24, against 5.3 per cent estimated in February

4) RBI says the fight against inflation far from over as inflation outlook dynamic amid sudden announcement of crude output cut by OPEC+

5) War against inflation has to continue until RBI sees a durable decline in inflation closer to the target

6) Expectation of a record Rabi harvest bodes well for easing of food price pressures, milk prices likely to remain firm going into the summer season due to tight demand-supply balance and fodder cost pressures

7) Protracted geopolitical tensions and global financial market volatility pose downside risks to growth outlook

8) Witnessing unprecedented uncertainties in geopolitics and economy

9) Global economy confronted with serious financial stability challenges in wake of recent banking sector developments in advanced countries

10) Regulators need to identify potential vulnerabilities and take proactive regulatory and supervisory measures

11) Institutions should exercise due diligence in risk management, corporate governance practices; pay close attention to asset-liability mismatches, build up adequate capital buffers

12) RBI keeping a close watch on the banking sector turmoil in some developed countries

13) RBI to set up centralised portal for public to search unclaimed deposits in multiple banks

14) Indian Rupee moved in an orderly manner in 2022 and continues to be so in 2023, RBI remains watchful on maintaining stability

15) CAD to remain moderate in Q4:2022-23 and in the year 2023-24 at a level that is both viable, eminently manageable

The next meeting of the monetary policy committee is scheduled to take place from June 6-8.

(With inputs from PTI)

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