In its latest monetary policy review, the Reserve Bank of India (RBI) has decided to keep the repo rate steady at 6.5 per cent, marking the ninth consecutive meeting without a rate change. This decision highlights the central bank’s continued focus on withdrawing accommodation while balancing inflation and growth.
RBI Governor Shaktikanta Das announced that the decision was made by a majority vote, with four out of six members of the Monetary Policy Committee (MPC) supporting the move to keep the rate unchanged.
“After a detailed assessment of the evolving macroeconomic and financial conditions and the overall outlook, the MPC decided by a majority of 4:2 members to maintain the policy repo rate at 6.5 per cent,” stated Das.
The standing deposit facility (SDF) rate will remain at 6.25 per cent, and the marginal standing facility (MSF) and the bank rate will stay at 6.75 per cent. Das asserted that the MPC’s primary focus is on the “withdrawal of accommodation” to ensure that inflation is kept in check while still fostering economic growth.
The RBI has projected real GDP growth for the financial year 2024-25 at 7.2 per cent. Additionally, the central bank forecasts an inflation rate of 4.5 per cent for the same period, indicating a balanced approach to managing the economy amidst global and domestic challenges.
