RBI MPC keeps repo rate unchanged at 6.5%

BL Mumbai Bureau Updated - August 08, 2024 at 11:20 AM.

Favourable base effect on retail inflation is likely to reverse in the third quarter, even as domestic growth holds steady

RBI Governor Shaktikanta Das attends a news conference after the monetary policy review. | Photo Credit: REUTERS

The six-member Monetary Policy Committee (MPC) decided to keep the repo rate on hold at 6.50 per cent, even as it continued with its disinflationary stance of “withdrawal of accommodation”. Both decisions were made by a 4-to-2 majority.

“Ensuring price stability will ensure growth. With GDP growth holding well, we decided to hold the repo rate,” Governor Shaktikanta Das said after the 50^th MPC meeting.

Catch the RBI MPC meeting live here

Das noted that headline inflation increased to 5.1 per cent in June, primarily because of food inflation, which remains stubborn.

Favourable base effect on retail inflation is likely to reverse in the third quarter, even as domestic growth holds steady.

The six-member MPC has been on pause mode for over 17 months now. The last time there was a rate action was on February 8, 2023, when the repo rate was increased from 6.25 per cent to 6.50 per cent.

The Committee met from August 6^th to August 8^th. This is its third meeting of FY25.

Published on August 8, 2024 04:51