(MT Newswires) -- The Governor of the Reserve Bank of India, Shaktikanta Das, reports that the Indian economy is growing faster than expected and inflation is falling. He attributes this growth to structural factors such as improved infrastructure, the development of digital and payment technologies, a higher quality workforce and better use of tax expenditure. 
 
The Monetary Policy Committee (MPC) has decided to maintain the monetary policy rate at 6.5%, the permanent deposit facility at 6.25% and the marginal lending facility rate as well as the bank rate at 6.75%. The aim of this measure is to gradually bring inflation back towards the target, while promoting economic growth.
 
Inflation rose to 5.7% in December 2023, mainly due to food inflation, while core inflation (excluding food and energy) continued to fall. The MPC is monitoring food inflationary pressures and is committed to keeping inflation at 4% on a sustainable basis.

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