RBI MPC Meet 2024: RBI Governor Shaktikanta Das emphasized the need for ongoing proactive disinflationary measures in monetary policy, according to his statement.
On Thursday, Reserve Bank of India Governor Shaktikanta Das announced that the central bank has maintained the repo rate at 6.5 percent. The benchmark interest rate was last increased in February last year, from 6.25 percent to 6.5 percent, in response to inflationary pressures stemming from global factors. There were no changes made to the rate during the December 2023 meeting. Retail inflation in the current fiscal year has decreased since reaching a peak of 7.44 percent in July 2023. However, it remains elevated, registering at 5.69 percent in December 2023, albeit staying within the Reserve Bank’s target range of 4-6 percent. – RBI MPC Meet 2024
The Monetary Policy Committee (MPC), led by the RBI governor, commenced its three-day deliberations on Tuesday. Experts from various sectors believe that, for the sixth consecutive time, the central bank will maintain the repo rate at its current level of 6.5 percent, primarily due to concerns regarding inflation. The Consumer Price Index (CPI) is the primary measure of retail inflation, and the government has directed the central bank to maintain it at 4% with a 2-percent cushion on either side.
The MPC is in charge of determining the policy repo rate in order to meet the inflation target while also focusing on growth.