Monetary Policy Committee Meeting and UPI Payment Limit Increase

TLDRThe Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 6.50%. There has been an increase in the UPI payment limit. The domestic economy is showing resilience with continued strengthening of manufacturing and construction activities, gradual recovery in rural sectors, and healthy balance sheets of banks and corporates. The supply chain normalization has improved business optimism, leading to an increase in public and private investment. There has been an improvement in exports. The CPI inflation has decreased from 7.44% to 4.87%, and the projection for 2023-24 is 5.4%.

Key insights

📈Domestic economy showing resilience with strengthening manufacturing and construction activities.

💰Gradual recovery in rural sectors leading to increased household consumption.

📉CPI inflation has decreased from 7.44% to 4.87%.

📊Projection for CPI inflation in 2023-24 is 5.4%.

🌍Improvement in exports due to reduced global volatility.

Q&A

What is the UPI payment limit increase?

—The UPI payment limit has been increased to support higher value transactions and promote digital payments.

What is the target CPI inflation?

—The target CPI inflation is 4% within a range of plus/minus 2%.

What is the current repo rate?

—The current repo rate is 6.50%.

What are the key factors contributing to the domestic economy's resilience?

—The key factors contributing to the domestic economy's resilience include strengthening manufacturing and construction activities, gradual recovery in rural sectors, and improved business optimism.

How has the CPI inflation changed since the last MPC meeting?

—The CPI inflation has decreased from 7.44% to 4.87% since the last MPC meeting.

Timestamped Summary

00:00Introduction and overview of the MPC meeting and UPI payment limit increase.

02:59Discussion on the unchanged repo rate and the rationale behind the MPC's decision.

04:41Analysis of the domestic economy's resilience, including strengthening manufacturing and construction activities.

06:09Highlighting the gradual recovery in rural sectors and its impact on household consumption.

07:15Explanation of the decrease in CPI inflation and the projection for 2023-24.

08:30Discussion on the improvement in exports and the factors contributing to the domestic economy's resilience.

09:41FAQs covering the UPI payment limit increase, target CPI inflation, current repo rate, factors contributing to the domestic economy's resilience, and changes in CPI inflation since the last MPC meeting.

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