The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has opted to maintain the key repo rate at 6.5%, continuing its focus on the ‘withdrawal of accommodation’.
This marks the ninth consecutive meeting in which the central bank’s six-member MPC has decided to keep the key policy rates unchanged.
RBI Governor Shaktikanta Das said four members of the 6-member MPC voted in favour of keeping the policy repo rate unchanged at 6.5%.
“After a detailed assessment of the evolving macroeconomic and financial conditions and the overall outlook, it (MPC) decided by a majority of 4:2 members to keep the policy repo rate unchanged at 6.5%,” Das said.
The standing deposit facility (SDF) rate remains at 6.25% and the marginal standing facility (MCF) and the bank rate stand unchanged at 6.75%.
Shaktikanta Das added that the MPC remains focused on the “withdrawal of accommodation” to ensure optimal inflation targeting while also supporting growth.
The central bank has projected real GDP growth for FY25 at 7.2%, while the inflation forecast for the financial year is estimated at 4.5%.