India

Repo Rate Remains Unchanged For The Seventh Consecutive Time Followed By Monetary Policy Meeting

The Reserve Bank of India’s Monetary Policy Committee (MPC) has opted to maintain the policy repo rate at 6.5 per cent, citing persistently high retail inflation exceeding its 4 per cent target. This marks the seventh consecutive meeting in which the MPC has chosen to retain the status quo on the repo rate. The repo rate serves as the interest rate at which banks access funds from the RBI to address short-term liquidity imbalances.

This is the first monetary policy statement of the current financial year 2024-25, said RBI Governor Shaktikanta Das. “It was decided by a majority of 5:1 to keep the interest rate unchanged at 6.50 per cent. Consquently the Standing Deposit Facility, the SDF rate remains at 6.25 per cent. Marginal Standing Facility (MSF) rate and the bank remain at 6.75 per cent,” said Das.

In its previous review conducted in February 2024, the MPC upheld the existing policy rates and stance. The RBI has also sustained its stance of ‘withdrawal of accommodation’. However, the recent announcement by the India Meteorological Department (IMD) forecasting above-normal temperatures from April to June raises concerns about potential price increases for vegetables, fruits, and other perishable goods.

“The tight demand-supply situation in certain categories of pulses and the production outcome of key vegetables want close monitoring especially in the background of the forecast of above normal temperature in the coming months” said RBI Governor Shaktikanta Das.

Governor Das remarked that the future appears promising for agriculture and rural activities. He emphasized that the strengthening of rural demand and improvements in employment conditions are anticipated to stimulate private consumption.

The Monetary Policy Committee (MPC) was established under the Reserve Bank of India Act, 1934, comprising six members: three from the RBI, including Governor Shaktikanta Das, and three appointed by the Central government. The three-day review meeting of the MPC, which commenced on April 2, concluded today. Governor Das noted that growth has continued to exceed all projections, while headline inflation has moderated to 5.1 per cent in both January and February.

Also Read: Congress Set To Reveal Its Manifesto: To Be Centred Around ‘Paanch Nyay’

Srishti Verma

Recent Posts

Renowned Folk Singer Sharda Sinha Passes Away At 72; PM Modi Expresses Condolences

PM Modi expressed sorrow over Sinha’s death. "The passing of Sharda Sinha ji is deeply…

2 hours ago

US Election: India Confident Of Strong US Relations And Quad Continuity, Says Jaishankar

Jaishankar noted that the US-India relationship has flourished under both Democratic and Republican leadership, including…

3 hours ago

Sanskriti Diwas Marks 98th Birth Anniversary Of Kashiraj Dr Vibhuti Narayan Singh

Program coordinator Chakravarti Vijay Navad announced that 11 prominent individuals received the Kashiraj Dr. Vibhuti…

3 hours ago

Mallikarjun Kharge Slams ‘Batenge Toh Katenge’ Slogan During Jharkhand Campaign

Kharge emphasized that the BJP leaders promote divisive rhetoric as part of their agenda. He…

5 hours ago

Police Arrest Two In Fake Marriage Certificate Racket In Name Of Arya Samaj

DCP Nagar Abhishek Bharti revealed that five couples, including Shivani and Shrikant Yadav, recently filed…

5 hours ago

India And Nigeria Strengthen Counter-Terrorism Cooperation In Second Strategic Dialogue

Doval and Ribadu held detailed talks on challenges linked to terrorism and radicalization, including those…

6 hours ago