Thursday, June 13, 2024

Repo rate unchanged at 6.5% for eighth consecutive time – N.F Times


Mumbai: The Reserve Bank of India (RBI) Governor Shaktikanta Das is announcing the Monetary Policy Committee (MPC) decisions.

RBI Governor Shaktikanta Das said, “The Monetary Policy Committee decided by a 4:2 majority to keep the policy repo rate unchanged at 6.5%. Consequently, the standing deposit facility (SDF) rate remains at 6.25%, and the marginal standing facility (MSF) rate and the bank rate at 6.75%.”

The MPC has been convening in Mumbai this week to deliberate on key policy decisions. This comes as food inflation has been a persistent concern, with urban areas experiencing a 1.03 per cent rise while rural areas seeing a 0.59 per cent increase in April, leading to a combined national food inflation increase of 0.74 per cent. The decision comes amid robust growth momentum as retail inflation hit an 11-month low in April 2024 at 4.83 per cent. The number has remained within RBI’s tolerance band of 2-6 per cent.

The six-member monetary policy committee is expected to retain its stance and likely to maintain its projections of 7% gross domestic product growth and 4.5% average inflation in the financial year through March 2025.

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