RBI Monetary Policy Announcement Today Live Updates: The Reserve Bank of India’s Monetary Policy Committee on Friday unanimously decided to keep the key interest rates unchanged at 6.50 per cent. The RBI MPC headed by Governor Shaktikanta Das announced the committee’s decision after a three-day meeting that started on April 3. The RBI’s MPC voted by a 5:1 majority to keep key rates unchanged at 6.50 per cent. The policy stance is also maintained at ‘withdrawal of accommodation’, said Shaktikanta Das.
Before October, the MPC meeting was held on August 8-10 and the Central Bank had decided to keep the key policy repo rate unchanged at 6.5 percent, maintaining the status quo for the third time in a row. The MPC voted in 5:1 majority to maintain the ‘withdrawal of accommodation’ stance to ensure that inflation progressively aligns with the target, while supporting growth, Shaktikanta Das had said. “Consequently, the standing deposit facility (SDF) rate remains at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent,” the RBI governor had added.
Before December, the MPC meeting was held on October 4-6 and the central bank had decided to keep the key policy repo rate unchanged at 6.5 percent, maintaining the status quo for the fourth time in a row. The MPC decided by a majority of 5 out of 6 members to remain focussed at withdrawal of accommodation to ensure inflation aligns to the target by supporting growth.
During its December meeting, the RBI MPC had announced its decision to keep the repo rate unchanged at 6.50 per cent. This was the fifth meeting wherein the MPC decided to maintain the status quo on the repo rate. “The Reserve Bank of India’s Monetary Policy Committee after a detailed assessment of the evolving macroeconomic developments, has decided unanimously to keep the repo rate unchanged at 6.5 per cent,” RBI Governor Shaktikanta Das had said, amid India’s better-than-expected economic growth. The RBI governor had said that FY24 real GDP growth was projected at 7 per cent. Real GDP growth for the next year was projected at 6.7 per cent in Q1, 6.5 in Q2 and 6.4 in Q3.
The last MPC meeting was held on February 6-8 and the central bank had decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent. The MPC had also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth. “These decisions are in consonance with the objective of achieving the medium- term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth,” Das had announced after the end of the three days meeting.
The panel headed by RBI Governor Shaktikanta Das has three external members. It can be noted that Shaktikanta Das’ term as the RBI Governor is set to end in December this year. Other members of MPC are Shashanka Bhide, Ashima Goyal, Jayanth R Varma, Rajiv Ranjan, and Michael Debabrata Patra. Every member of the MPC has one vote, and in the event of an equality of votes, the Governor has a second or casting vote.
The Monetary Policy Committee meeting headed by RBI Governor Shaktikanta Das ends today and the MPC will announce its decision on repo rate. RBI Governor Shaktikanta Das will deliver his monetary policy statement at 10:00 am. This can be watched on the official YouTube channel of RBI.
RBI MPC is expected to continue the pause stance and keep the repo rate unchanged at 6.5 per cent. The RBI has raised the repo rate by 250 basis points (bps) since May 2022.