RBI monetary policy: On expected lines, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) maintained a status quo on the repo rate and poly stance on Friday, June 7. The six-member committee of the central bank, with a majority of 4:2, decided to keep the benchmark repo rate unchanged at 6.5 per cent for the eighth consecutive time. The MPC also decided to continue its stance of ‘withdrawal of accommodation’.
RBI Governor Shaktikanta Das, in his monetary policy speech, pointed out that inflation is easing and economic growth is firming, but food inflation remains a concern.
Here are five key highlights from the RBI MPC outcome:
Status quo on rates, stance
RBI MPC left benchmark policy rates and stance unchanged after a detailed assessment of the evolving macroeconomic and financial developments and the outlook.
The policy repo rate remains unchanged at 6.50 per cent, while the standing deposit facility (SDF) rate remains at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.
The MPC, by a majority of 4 out of 6 members, decided to remain focused on the “withdrawal of accommodation”.
Inflation forecast
RBI retained the Consumer Price Index (CPI)-based inflation forecast, also known as retail inflation, at 4.5 per cent for FY25. Government Das said inflation shows signs of moderation, but food inflation can be a spoilsport.
“On inflation, we are on the right track, but work still needs to be done,” said Das.
Growth forecast revised
RBI raised its GDP growth forecast for FY25 to 7.2 per cent from 7 per cent earlier.
(More to come)
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Published: 07 Jun 2024, 10:22 AM IST
