RBI Monetary Policy: Stability in India's Monetary Policy as Repo Rate Maintains at 6.5%

The Reserve Bank of India (RBI) has announced the maintenance of the repo rate at 6.5%, aligning with market predictions. The rate has remained steady since April last year. The RBI forecasts a 4.5% inflation rate for the fiscal year 2024-25 and anticipates a 7% growth in GDP.

Prabhav Anand 05 April 2024 05:54

RBI MPC Meet Live Updates: Governor Shaktikanta Das to announce MPC decision today at 10 AM (File Image)

Today's monetary policy meeting concluded with the RBI's decision to keep the short-term lending rate, known as the repo rate, at 6.5%. The decision was made public by the RBI Governor, Shaktikanta Das, who leads the Monetary Policy Committee (MPC) consisting of six members. Governor Das is scheduled to elaborate on the policy decisions in a subsequent press conference.

During the meeting held from April 3rd to 5th, the MPC evaluated the current macroeconomic and financial conditions and their future trajectory. With a majority of 5 to 1, the committee resolved to maintain the repo rate at 6.5%.

Market analysts had previously anticipated that the RBI would hold the rate steady, continuing its cautious approach to monetary policy, a trend observed among central banks in developed economies. The last adjustment to the rate was an increase in February 2023.

Experts suggest that the RBI may not consider reducing the repo rate unless inflation consistently hits the 4% target. The RBI is tasked with keeping inflation within a 2-6% range.

In related news, Indian stock indices began the day on a neutral note in anticipation of the RBI's policy announcement. The BSE Sensex saw a marginal rise of 0.08%, while the Nifty experienced a slight decline of 0.13%, with both indices showing little change thereafter.