Economic Update:
- The Monetary Policy Committee (MPC) met from 3rd to 5th April 2024 and decided to keep the policy rate unchanged at 6.50% and remain focused on withdrawal of accommodation and committed in aligning inflation to the target.
- RBI said that the growth has continued its momentum while inflation has eased to 5.1% in January and February 2024 from 5.7% in December 2023. As the growth sustains, the RBI will remain focused to bring the inflation to target of 4.0%.
- In other news, Government finalized its borrowing plan, in consultation with RBI for the first half of FY24-25.
- Out of the Gross Market borrowing of Rs 14.13 Lakh Crore projected for FY25 in the Union Budget, Rs 7.50 Lakh Crore (53.08%) is planned to be borrowed in the first half through dated securities, including Rs 12,000 Crore through issuance of Sovereign Green Bonds (SGBs).
- The borrowing in the first half is scheduled to be over in 26 weekly tranches, each ranging from Rs 20,000 Crore to Rs 38,000 Crore, the ministry said. The share of borrowing, including through the green bonds, under different maturities will be: 3-year (4.80%), 5-year (9.60%), 7-year (8.80%), 10-year (25.60%), 15-year (13.87%), 30-year (8.93%), 40-year (19.47%) and 50-year (8.93%).
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
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