RBI Keeps Repo Rate Unchanged for 6th Time for FY24 The previous change in the key rate took place last February when the apex body hiked the repo rate by 25 basis points to 6.50 per cent from 6.25 per cent
By Paromita Gupta •
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The Reserve Bank of India on Thursday announced its decision to keep the repo rate unchanged at 6.50 per cent. It remains unchanged for the 6th time this fiscal year. The previous change in the key rate took place last February when the apex body hiked the repo rate by 25 basis points to 6.50 per cent from 6.25 per cent.
Repo rate refers to the rate at which banks deposit money with RBI.
"Taking into account (this) growth inflation dynamics and the fact that the transmition of the cumulative 250 basis points policy rate hike is still underway, the MPC decided to keep the policy repo rate unchanged at 6.5 per cent. The MPC will carefully monitor any signs of generalisation of food price pressures which can fritter away the gains in easing of core inflation," said RBI Governor Shaktikanta Das during the presentation.
The decision was made unanimously by the Monetary Policy Committee (MPC), comprising the RBI Governor, 2 deputy governors, and 3 external members- Shaktikanta Das, Rajiv Ranjan, Ashima Goyal, Shashanka Bhide, Jayanth Varma, and Michael Patra. The committee held meetings for three consecutive days- 6th, 7th and 8th of February 2024.
"Monitory policy must continue to be actively disinflationary to align inflation to the target of 4 per cent on a durable basis," he adds.
The real GDP growth for FY23-24 is projected at 7 per cent, "The third successive year of growth of above 7 per cent." The projections for the first three quarters of FY25 are estimated at 7.2 per cent, 6.8 per cent, and 7 per cent, respectively.
