RBI MONETARY POLICY 2024
- Isha V Joshi
- Aug 10, 2024
- 2 min read
Updated: Nov 15, 2024
On 8th August 2024, Shri. Shaktikanta Das, Governor of the Reserve Bank of India (RBI), presented the RBI Monetary Policy Framework. It was observed that the tone of the governor was hawkish indicating a positive outcome. Earlier, As predicted by many economists and bankers, the Monetary Policy Committee (MPC) kept the repo rate unchanged.
Let's take a look at some of the key takeaways from this August Monetary Policy Statement:
RBI decided to keep the repo rate unchanged at 6.50%.
Governor is confident on strong macroeconomic growth and managed to keep inflation under control.
Inflation remained steady at 4.8% during April and May 2024, increased to 5.1% in June 2024, primarily carried by food components.
Global financial markets are volatile. Bonds and the dollar are moderate since the last meeting.
Consumer Price Index (CPI) is 5.1% in June 2024 due to food inflation.
As stated by RBI Governor, "The Indian financial system remains resilient and is gaining strength from broader macroeconomic stability", the economy is stable.
Increase the UPI transaction limit to ₹5 lakh per transaction. This will ease tax payment by consumers through UPI.
It was proposed by the Governor to reduce the cheque clearing cycle by introducing continuous clearing with 'on-realization-settlement' in (CTS). This means that cheques will be cleared within a few hours on the day of presentation. It will speed up the cheque payment process and will mutually benefit both the payer and the payee.
As usual, the Governor concluded his statement with the following quote from Mahatma Gandhi.
“The slightest error of judgment, a hasty action or a hasty word may put back the hands of the clock of progress. Policies have, therefore, to be cautiously evolved…”.
The Reserve Bank of India (RBI) is well aware of the multiple challenges faced by the financial sector and is solving those problems patiently. Through a strategic and patient approach, RBI is working on the betterment of the financial sector. Looking at the above Monetary Policy statements, it shows that RBI is framing policies that will be effective and will foster growth. Looking at this positive stance of RBI, we can expect some rate cuts in early 2025.
Following are the members of MPC:
- Shri Shaktikanta Das
- Dr. Shashanka Bhide
- Dr. Rajiv Ranjan
- Dr. Michael Debabrata Patra
- Dr. Ashima Goyal
- Prof. Jayanth R. Varma
BY:
Isha V Joshi
9-Aug-24'
sources:
Excellent 👌 Keep it up
Excellent 👌 Keep it up