The Reserve Bank of India's MPC has kept repo rates unchanged at 6.5 percent, RBI Governor Shaktikanta Das announced, “The RBI MPC has decided unanimously to keep the policy repo rate unchanged at 6.50 percent. Consequently, the standing deposit facility (SDF) rate remains at 6.25 percent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 percent. The MPC also decided by a majority of 5 out of 6 members to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth."
Real GDP growth is projected at 7 percent for the current year, FY23-24. CPI inflation is projected at 5.4 percent for FY24. The RBI has maintained the benchmark policy rate (repo) at the same level for the past four bi-monthly monetary policies.
The last adjustment to the repo rate was an increase in February 2023, setting it at 6.5 percent. This adjustment concluded a series of interest rate hikes initiated in May 2022 due to the repercussions of the Russia-Ukraine war and subsequent disruptions in the global supply chain, which led to elevated inflation within the country.
The RBI MPC meeting was held from December 6 to December 8, with Governor Das, leading discussions for the committee.
