The Reserve Bank of India (RBI) on June 08, 2023, issued a Press Release regarding the details of the Minutes of the Monetary Policy Committee Meeting
It states that decisions have an objective of achieving the medium-term target for consumer price index inflation of 4 percent within a band of +/- 2 percent while supporting growth.
The following are the minutes of the meetings namely: -
• It has been decided to Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 percent.
• The standing deposit facility (SDF) rate remains unchanged at 6.25 percent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 percent.
• The MPC also decided to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.
• It states that the average daily absorption under the LAF increased to ₹1.7 lakh crore during April-May from ₹1.4 lakh crore in February-March. Money supply (M3) expanded by 10.1 percent y-o-y and non-food bank credit by 15.6 percent as on May 19, 2023. India’s foreign exchange reserves were placed at US$ 595.1 billion as on June 02, 2023
• It further states that the provisional estimates released by the National Statistical Office (NSO) on May 31, 2023, India’s real gross domestic product (GDP) growth accelerated from 4.5 percent (year-on-year, y-o-y) in Q3:2022-23 to 6.1 percent in Q4, supported by fixed investment and higher net exports. Real GDP growth for 2022-23 was placed at 7.2 percent, higher than the second advance estimate of 7.0 percent.
• The next meeting of the MPC is scheduled during August 08-10, 2023.
[Press Release: 2023-2024/364]
