RBI Keeps Repo Rate Unchanged at 6.5% as it Lowers FY24 Inflation Projection
The Reserve Bank of India's Monetary Policy Committee (MPC) has unanimously decided to maintain the repo rate at 6.5 percent, citing the positive impact of previous rate hikes on the economy and the need to carefully calibrate monetary policy for inflation alignment. This decision comes after a pause in rate hikes in April and aims to contain inflationary pressures while supporting economic growth. The GDP growth projection for FY24 remains unchanged at 6.5 percent, while the inflation projection has been lowered to 5.1 percent. Explore the key highlights and implications of this monetary policy update.
updatesonproperty updatesonproperty 
The Reserve Bank of India's Monetary Policy Committee (MPC) announced its unanimous decision to maintain the repo rate at 6.5 percent. RBI Governor Shaktikanta Das highlighted the positive impact of previous rate hikes on the economy and stated that inflationary pressures should remain contained. The MPC, with a majority of 5 out of 6 members, also decided to continue with the stance of "withdrawal of accommodation," although one member expressed reservations. The GDP growth projection for FY24 remained unchanged at 6.5 percent, while the inflation projection for the same period was lowered to 5.1 percent. Governor Das emphasized the goal of achieving 4 percent inflation and stated that the current monetary policy actions have yielded favorable results, allowing for the decision to keep rates unchanged. India's forex reserves stood at $595.1 billion, and the current account deficit is expected to be manageable in FY24. The previous policy announcement in April marked a pause in rate hikes after six successive increases. The MPC remains focused on gradually withdrawing accommodation to align inflation with the target while supporting economic growth.
