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RBI Maintains Repo Rate at 6.50% After Unanimous MPC Vote
The Reserve Bank of India's Monetary Policy Committee voted unanimously to keep the repo rate at 6.50% for the eighth consecutive time. This decision reflects the central bank's focus on achieving its 4% inflation target and supporting economic…
The Reserve Bank of India (RBI) announced on June 7, 2024, that its Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate at 6.50%. This marks the eighth consecutive meeting where the key lending rate has remained unchanged. The MPC's decision aligns with its objective of achieving the medium-term target of 4% consumer price index (CPI) inflation while supporting economic expansion.
Alongside the rate hold, the MPC also voted by a 4-2 majority to continue its stance of “withdrawal of accommodation.” This indicates a policy approach aimed at ensuring inflation progressively aligns with the target. Governor Shaktikanta Das highlighted that while headline inflation has moderated, global food prices and geopolitical tensions present risks that necessitate continued vigilance. The RBI remains committed to steering inflation within the target band, allowing monetary policy to support sustainable growth over time.
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