Following are the highlights of RBI's monetary policy statement:

  • Benchmark lending rate unchanged at 6.50 per cent
  • RBI projects 6.5% economic growth for 2023-24, better than 6.4% projected in February
  • Inflation to be 5.2% in 2023-24, against 5.3% estimated in February
  • Fight against inflation far from over, inflation outlook dynamic amid sudden announcement of crude output cut by OPEC+
  • War against inflation has to continue until RBI sees a durable decline in inflation closer to the target
  • Expectation of a record Rabi harvest bodes well for easing of food price pressures, milk prices likely to remain firm going into the summer season due to tight demand-supply balance and fodder cost pressures
  • Protracted geopolitical tensions and global financial market volatility pose downside risks to growth outlook
  • Witnessing unprecedented uncertainties in geopolitics and economy
  • Global economy confronted with serious financial stability challenges in wake of recent banking sector developments in advanced countries
  • Regulators need to identify potential vulnerabilities and take proactive regulatory and supervisory measures
  • Institutions should exercise due diligence in risk management, corporate governance practices; pay close attention to asset-liability mismatches, build up adequate capital buffers
  • RBI keeping a close watch on the banking sector turmoil in some developed countries
  • RBI to set up centralised portal for public to search unclaimed deposits in multiple banks
  • Indian Rupee moved in an orderly manner in 2022 and continues to be so in 2023, RBI remains watchful on maintaining stability
  • CAD to remain moderate in Q4:2022-23 and in the year 2023-24 at a level that is both viable, eminently manageable
  • Next meeting of the monetary policy committee scheduled for June 6-8.

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