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RBI to maintain repo rate at 6.50 percent

BNE News Desk , April 5, 2024
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Mumbai: Reserve Bank of India (RBI) has chosen to uphold its current repo rate at 6.50 percent. This decision comes in light of the central bank's efforts to balance economic growth and inflationary pressures. The RBI's Monetary Policy Committee (MPC) made the announcement today, on April 5th, 2024.

Since the last policy, RBI Governor Shaktikanta Das said, the growth-inflation dynamics have played out favourably. Economic growth has exceeded projections, while headline inflation dropped to 5.1% in January and February 2024 from 5.7 percent in December 2023, with core inflation also declining steadily. However, food inflation increased in February.

After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, it was decided by a 5 to 1 majority, headed by Das to keep the policy repo rate unchanged at 6.50 per cent. Consequently, the standing deposit facility (SDF) remains at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. The MPC also decided by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.

Consequently, the MPC decided to maintain the policy rate at 6.50 percent to ensure inflation descends to the target of 4.0% and to address potential inflationary pressures.

Das, who heads the six-member Monetary Policy Committee (MPC), will later address the post policy press conference.

This decision to maintain the repo rate at 6.5 percent follows a series of consistent rates set by the RBI over the past couple of years.

The repo rates on 8th February 2024 was 6.50 percent; on 8th December 2023, it was 6.50 percent; on 6th October 2023, it was 6.50 percent; on 8th June 2023, it was 6.50 percent; on 6th April 2023, it was 6.50 percent; on 8th February 2023, it was 6.50 percent; on 7th December 2022, it was 6.25 percent; on 30th September 2022, it was 5.90 percent; on 5th August 2022, it was 5.40 percent; on 8th June 2022, it was 4.90 percent; and on 4th May 2022, it was 4.40 percent.

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