Thursday, February 29, 2024
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RBI monetary policy, February 2024: Central bank keeps interest rate unchanged at 6.5%

New Delhi: The Reserve Bank of India (RBI) on Thursday announced the outcome of the Monetary Policy Committee (MPC) decision, keeping repo rates unchanged at 6.5 per cent. The RBI’s MPC, opting for the status quo on the repo rate, has maintained a monetary policy stance of ‘withdrawal from accommodation’.

The three-day MPC meeting, chaired by RBI Governor Shaktikanta Das, began on October 6 and concluded today. Announcing the MPC’s decision, Das said the committee unanimously decided to keep the repo rate at 6.5 per cent. Shaktikanta Das, announcing the policy outcome, said the MPC decided on a 5:1 ratio focusing on withdrawal of accommodation, to keep interest rates stable.

“After a detailed assessment of the evolution of microeconomic and financial developments and the outlook, the Monetary Policy Committee (MPC) decided by a 5:1 majority to keep the policy rate unchanged at 6.5 percent “said RBI Governor Shaktikanta Das while announcing the MPC result.

Consequently, the reverse repo rate stands at 3.5 percent, the standing deposit facility (SDF) rate remains unchanged at 6.25 percent and the marginal standing facility (MSF) rate remains unchanged at 6.25 percent. ) and the bank rate at 6.75 percent.

Governor Das said the MPC remains determined to contain inflation at the 4 per cent target, pegging real GDP growth for FY25 at 7 per cent, with the first quarter at 7.2 per cent.

“However, headwinds from geopolitical tensions, volatility in international financial markets and geoeconomic fragmentation pose risks to the outlook. Taking all these factors into account, real GDP growth for 2024-25 is projected at a 7.0 percent and in the first quarter by 7.2 percent; “The second quarter was 6.8 percent; the third quarter, 7.0 percent; and the fourth quarter, 6.9 percent. “The risks are balanced,” he stated.

A year is divided into six bimonthly reviews of the central bank’s monetary policy. Additionally, there are off-cycle reviews, where the central bank holds additional sessions in urgent situations.

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