The Reserve Bank of India in its latest monetary policy, held the repo rate at 6.5 percent. In the last one year, it had raised the same by around 250 basis points. The move was widely welcomed by the Indian corporate world, especially by the real estate developers.
On the backdrop of prevailing uncertainty in the global markets, and the decision of OPEC to cut crude oil production, the Central Bank indicated that if the situation warrants, it will not hesitate to have a relook at the repo rate.
Commenting on the developments in the domestic economy, the central bank noted that private consumption and public investment were the major drivers of growth during FY23. Further, its latest survey indicated that businesses and consumers are optimistic about India’s future outlook. Taking all these factors into consideration RBI expects the Inflation rate to stay at around 5.2 percent in FY24 and the real GDP growth to grow at 6.5 percent.