Repo Rate Held Steady at 6.5%: Insights from RBI MPC 2024 Live Updates
RBI's Focus on Aligning Inflation to Target: Governor Das's Remarks
Inflation and GDP Projections: Highlights from RBI's Monetary Policy
RBI Governor Das emphasizes the ongoing effort to align inflation with the target on a durable basis, indicating that the task remains unfinished. In line with analysts' expectations, the RBI has maintained the repo rate at 6.5 percent during the latest Monetary Policy Committee (MPC) meeting. The rate has remained unchanged since April 2023, with the last adjustment being an increase in February of the same year. The central bank projects retail inflation to hover around 4.5 percent in fiscal 2024-25 and anticipates a GDP growth rate of 7 percent, offering insights into India's economic trajectory.
Today, the Reserve Bank of India (RBI) convened its Monetary Policy Committee (MPC) meeting to announce its decision on the repo rate, the benchmark short-term lending rate. Governor Shaktikanta Das, leading the six-member MPC, will address the post-policy press conference following the announcement.
In his address, Governor Das revealed that after thorough deliberation over the evolving macroeconomic and financial landscape, the MPC, with a majority of 5 to 1, opted to maintain the policy repo rate at 6.50 percent. This decision aligns with analysts' expectations, who anticipated a continuation of the 'withdrawal of accommodation' stance by the central bank, akin to its counterparts in advanced economies. Notably, the RBI has refrained from altering the repo rate since its last hike cycle in February 2023.
Analysts speculate that the RBI is unlikely to lower the repo rate in the foreseeable future, especially without achieving the 4 percent inflation target on a sustainable basis. The RBI's mandate is to maintain the inflation rate within the target range of 2-6 percent.
Ahead of the RBI MPC policy outcome, Indian benchmark indices displayed a subdued opening. The BSE Sensex marginally rose by 0.08 percent, while the Nifty dipped by 0.13 percent. Both indices continued to trade flat, reflecting market anticipation and cautious sentiment surrounding the RBI's policy decision.
