RBI Governor Shaktikanta Das on June 7, 2024, announced that the Monetary Policy Committee has decided to keep the repo rate unchanged at 6.5%. File | Photo source: ANI
The Reserve Bank of India (RBI) on June 7 decided to leave key interest rates unchanged for the eighth consecutive time, saying it would continue to closely monitor inflation.
The cycle of rate increases was paused in April last year after six consecutive increases, which totaled 250 basis points since May 2022.
Announcing the second bimonthly monetary policy for the current financial year, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5%.
He said the MPC would continue to keep an eye on elevated food price inflation in anticipation of a normal monsoon.
The RBI raised its growth forecast to 7.2% from its earlier estimate of 7% for the current financial year.
Das announced the decision at 10 a.m., after deliberations of the RBI’s rate-setting panel – the Monetary Policy Council – which began discussions on Wednesday.
The government has mandated the RBI to ensure retail inflation at 4% with a margin of 2% on both sides. Retail inflation in April this year. was 4.83%.
The MPC consists of three external members and three RBI officials. The external members of the interest rate panel are Shashanka Bhide, Ashima Goyal and Jayanth R. Varma.