RBI Monetary Policy: GDP Growth Projection Retained at 6.5 Percent

RBI Governor Shaktikanta Das also announced that the repo rate would remain unchanged at 6.50 percent.

Shaktikanta Das. 

(Photo: PTI)

The Reserve Bank of India (RBI) on Thursday, 8 June retained its growth projection for the current financial year at 6.5 percent.

"Domestic demand condition remains supportive of growth and also the demand in rural areas is on the revival path," RBI Governor Shaktikanta Das said.

Further, the RBI said that the higher rabi crop production in the current fiscal, the expected normal monsoon season and the sustained buoyancy in services will be able to support private consumption.

"Taking all these factors into consideration, real GDP growth for 2023-24 is projected at 6.5 per cent with Q1 at 8 per cent, Q2 at 6.5 per cent, Q3 at 6 per cent, and Q4 at 5.7 per cent, with risks evenly balanced," Das added.

Further, Das announced that the repo rate would remain unchanged at 6.50 percent.

The RBI further announced that as of Thursday, 8 June, 50 percent of Rs 2,000 notes in circulation had come back, less that 20 days after their withdrawal was announced by the Centre. The total value of the returned notes is Rs 1.82 lakh.

Das said that 85 percent of the returned notes had come back as bank deposits.