Reserve Bank Governor Shaktikanta Das, while announcing the Monetary Policy on Thursday, said benchmark interest rate will remain unchanged at 6.5 per cent. The central bank has kept the rate unchanged for ninth time in a row for the last 18 months.
RBI Monetary Policy Committee (MPC) has also decided to continue with the monetary policy stance on withdrawal of accommodation. The rate-setting panel has kept the growth projection unchanged at 7.2 per cent for current financial year.
Das expressed concerns over rising disbursals of top-up home loans, asking lenders to take corrective measures. He warned banks to be cautious as decline in deposits might expose banks to structural liquidity issues.
The RBI governor said inflation is broadly on declining trajectory, adding the in the third quarter, substantial advantage of base effect may pull down overall inflation. He added that food inflation remains high in the first quarter of FY25, slowing the process of disinflation and impactinh household inflation expectation. The RBI governor said household consumption is supporting turnaround in demand.
Das projected retail inflation at 4.5 pc in the current fiscal assuming normal monsoon, saying a degree of relief is expected from pickup in southwest monsoon. He said the improved agricultural activities brightens prospects of rural consumption.
He said the manufacturing sector continues to gain ground on back of increasing domestic demand while the service sector remains buoyant.
The governor said the rupee remained largely range-bound in August and that country's financial system remains resilient, gaining strength from broader macroeconomic stability.
