The key policy repo rate remains unchanged at 6.5 per cent, as per the latest decision of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC).
The MPC has opted to keep the repo rate unchanged for the fourth consecutive time. It last increased this rate at its meeting in February 2023, from 6.25 to 6.50 per cent.
Shaktikanta Das, Governor, RBI, stated that the transmission of the 250 bps repo rate drop is still not complete when announcing the bimonthly monetary policy. The 6.5 per cent real GDP growth prediction for FY24 has not changed. The forecast for inflation for FY24 is also unchanged at 5.4 per cent.
According to the governor, preventing spikes in the price of food and fuel is a necessity that cannot be compromised.