RBI MPC retains repo rate at 6.5%

Not belying the expectations, the Reserve Bank of India’s Monetary Policy Committee (MPC) didn’t change the repo rate from 6.50 per cent whereas projecting gross home product (GDP) and inflation at 6.5 per cent and 5.1 per cent respectively.

Announcing the choice of the MPC after its three-day deliberations, RBI Governor Shaktikanta Das mentioned on Thursday that the committee unanimously determined to maintain the repo rate at 6.5 per cent.

Das mentioned making an allowance for the financial elements, the MPC has predicted GDP progress at 6.5 per cent in FY24.

As regards the inflation rate, the MPC forecast was 5.1 per cent for 2023-24 making an allowance for the rabi crop harvest/monsoon projections and beneficial close to time period inflation development.

Das additionally mentioned uncertainty exists as a consequence of geopolitical scenario, monsoon and others. The MPC met on June sixth, seventh and eighth.

(With inputs from IANS)