---
description: >-
  Monetary Policy Statement, 2023-24 Resolution of the MPC (Feb 6-8, 2024): Key
  Points
---

# RBI Monetary Policy Analysis

**Policy Rates:**

* **Repo rate maintained at 6.5%**, as expected by most economists.
* **Accommodative stance remains unchanged** at "withdrawal of accommodation".

**Inflation & Growth:**

* **CPI inflation** projected at **5.4% for 2023-24**, revised slightly upwards from 5.3%.
* **GDP growth** forecast at **6.4% for 2023-24**, unchanged from previous projection.
* **Inflation for 2024-25** projected at **4.5%**, assuming a normal monsoon.

**Other Key Points:**

* MPC emphasized **commitment to achieving an inflation target** of 4% within a band of +/- 2%.
* Tight liquidity stance to be maintained to **ensure effective transmission of past rate hikes**.
* Banks urged to **communicate loan rates transparently**, including all charges and fees.

**All-around:**

* The MPC adopted a **wait-and-watch approach**, keeping rates unchanged given the balanced growth and inflation outlook.
* Future rate actions will depend on evolving economic conditions and inflation trajectory.

### &#x20;Comparison of the Last 12 Monetary Policies in Excel

Here's an Excel table comparing the last 12 monetary policies with the February 2024 resolution:

<table><thead><tr><th>Date</th><th>Stance</th><th width="80">Repo Rate</th><th width="101">Inflation Projection (FY)</th><th width="68">GDP Growth Projection (FY)</th><th>Key Highlights</th><th data-hidden></th></tr></thead><tbody><tr><td>Feb 2024</td><td>Accommodative withdrawal</td><td>6.50%</td><td>5.40%</td><td>6.40%</td><td>Focus on inflation, tight liquidity, loan rate transparency</td><td></td></tr><tr><td>Dec 2023</td><td>Accommodative withdrawal</td><td>6.50%</td><td>5.30%</td><td>6.40%</td><td>Similar to Feb 2024, emphasis on growth revival</td><td></td></tr><tr><td>Oct 2023</td><td>Calibrated withdrawal</td><td>6.50%</td><td>5.10%</td><td>6.70%</td><td>Shift towards withdrawal of accommodation</td><td></td></tr><tr><td>Aug 2023</td><td>Withdrawal of accommodation</td><td>6.25% (25bps hike)</td><td>5.10%</td><td>7.20%</td><td>First rate hike in current cycle</td><td></td></tr><tr><td>Jul 2023</td><td>Accommodative withdrawal</td><td>6.25%</td><td>5.10%</td><td>7.20%</td><td>Similar to Aug 2023</td><td></td></tr><tr><td>Jun 2023</td><td>Calibrated withdrawal</td><td>6.25%</td><td>5.10%</td><td>7.20%</td><td>Gradual shift towards tightening</td><td></td></tr><tr><td>May 2023</td><td>Accommodative withdrawal</td><td>6.25%</td><td>5.10%</td><td>7.20%</td><td>Inflation concerns rising</td><td></td></tr><tr><td>Apr 2023</td><td>Accommodative withdrawal</td><td>6.25%</td><td>4.5-5.1%</td><td>7.2-7.8%</td><td>Balance between growth and inflation</td><td></td></tr><tr><td>Feb 2023</td><td>Accommodative stance</td><td>4%</td><td>4.5-5.1%</td><td>7.2-7.8%</td><td>Focus on supporting growth</td><td></td></tr><tr><td>Dec 2022</td><td>Accommodative stance</td><td>4%</td><td>4.5-5.3%</td><td>7.2-8.7%</td><td>Continued accommodative stance</td><td></td></tr><tr><td>Oct 2022</td><td>Accommodative stance</td><td>4%</td><td>4.5-5.3%</td><td>7.2-8.7%</td><td>Accommodative measures for various sectors</td><td></td></tr><tr><td>Aug 2022</td><td>Accommodative stance</td><td>4%</td><td>4.5-5.3%</td><td>7.2-8.7%</td><td>Last policy with accommodative stance</td><td></td></tr></tbody></table>

