RBI Holds Repo Rate at 6.5% for Sixth Time, Focus on Inflation
Feb 08, 2024 10:19
The Reserve Bank of India (RBI) maintained the repo rate at 6.5% for the sixth consecutive time, prioritizing inflation control. The Monetary Policy Committee (MPC) will closely monitor food inflation.
Illustration: Uttam Ghosh/Rediff.com
Mumbai, Feb 8 (PTI) The Reserve Bank of India on Thursday decided to keep policy rate unchanged for the sixth time in a row as it maintains a tight vigil on inflation.
The rate increase cycle was paused in April last year after six consecutive rate hikes aggregating to 250 basis points since May 2022.
Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das on Thursday said the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 per cent.
He said MPC will remain watchful of food inflation so that the benefits gained are not frittered away.
This is the first bi-monthly policy following presentation of Interim Budget 2024-25 last week.
In December, the Consumer Price-based Inflation (CPI) stood at 5.69 per cent.
The government has mandated RBI to ensure CPI inflation at 4 per cent with a margin of 2 per cent on either side.
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