RBI’S Monetary Policy Committee (MPC) Meeting: Repo Rate Unchanged
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The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) Thursday unanimously voted to leave the repo rate unchanged at 6.5 per cent. This is for the second time that the central bank has kept the basic rate unchanged.
At the last MPC meeting in April, the RBI paused its rate hike cycle and stayed with the 6.5 per cent repo rate. Prior to that, the central bank had cumulatively hiked the repo rate by 250 basis points since May 2022 in a bid to contain inflation.
Headed by Reserve Bank Governor, a meeting of the six-member Monetary Policy Committee (MPC) was held from June 6-8.
"The MPC has raised repo rates by 250 basis points since May last year, the effects of which will be seen in the coming months," Governor Shaktikanta Das said while explaining the rationale behind keeping policy rates unchanged. "MPC decides to keep repo rate unchanged at 6.5 per cent, Standing Deposit Facility Rate remains at 6.25 per cent. Marginal Standing Facility Rate and Bank Rate unchanged at 6.75 per cent," said Das.
Withdrawal of accommodation stance: RBI’s Monetary Policy Committee voted in a 5:1 majority on the withdrawal of accommodation to ensure inflation aligns with the target while focusing on growth.
