Business

RBI Retains Repo Rate At 6.5% For 6th Consecutive Time Amid Inflation Concerns

By
OB Bureau

New Delhi: With retail inflation is still hovering above the medium term target of 4 per cent, the Reserve Bank of India (RBI) opted to retain its key policy rate for the sixth consecutive time at 6.5 per cent during the Monetary Policy Committee (MPC) meeting on Thursday.

Repo is the rate at which the RBI lends short-term funds to banks.

“Uncertainty in food prices continue to impinge on headline inflation. Momentum in domestic activities continues to be strong,” RBI Governor Shaktikanta Das said in the briefing.

He emphasised on the necessity for the monetary policy to remain actively dis-inflationary. Five out of the six members voted in favour of the rate decision. The panel also retained the monetary policy stance unchanged at withdrawal of accommodation.

“Global growth is expected to remain steady in 2024, with heterogeneity across regions. Though global trade momentum remains weak, it is exhibiting signs of recovery and is likely to grow faster in 2024. Inflation has softened considerably and is expected to moderate further in 2024,” Das added.

Since the April monetary policy in 2023, the RBI has kept the repo rate unchanged at 6.5 per cent.

During its previous MPC meeting on December 8, the RBI had revised the growth projection for the current fiscal to 7 per cent, up from the earlier estimate of 6.5 per cent while maintaining the repo rate unchanged for the fifth consecutive time.

The MPC is determining the policy repo rate to achieve the inflation target, while it is also considering the goal of fostering an economic growth.

While retail inflation in the current fiscal has decreased since reaching a peak of 7.44 percent in July 2023, it remains elevated, standing at 5.69 percent in December 2023. However, it is within the Reserve Bank’s target range of 4-6 percent, thus staying within the central bank’s comfort zone.

The central bank governor last month, stated that the Indian economy is projected to achieve a growth rate of 7 per cent in the upcoming fiscal, with expectations of further easing in inflation. Das also acknowledged the Centre for the structural reforms it has implemented in recent years, noting that these reforms have enhanced the medium and long-term growth outlook for the Indian economy.

OB Bureau

Recent Posts

Is Tulsi Gabbard, First US Hindu Lawmaker Appointed As Intelligence Director In Trump 2.0 Of Indian Origin?

New Delhi: Former Democrat Tulsi Gabbard, picked by US President-elect Donald Trump as the Director…

November 14, 2024

Elderly Woman Mauled To Death By Stray Dog In Odisha Village

Balasore: In a shocking incident, an elderly woman was mauled to death by a stray…

November 14, 2024

Bhubaneswar Bali Jatra: Check Traffic Restrictions & Vehicle Parking Sites

Bhubaneswar: The annual Bali Jatra festival is set to be held at Bankual in Bhubaneswar…

November 14, 2024

Snap Polls In Sri Lanka Today; Results Likely On Friday

New Delhi: Sri Lanka is voting today in the second national election in as many…

November 14, 2024

Woman Dies After Being Attacked By Chain Snatchers 3 Days Ago In Bhubaneswar

Bhubaneswar: In a tragic incident, a woman who had sustained grievous head injuries after being…

November 14, 2024

Traffic Curbs Imposed For Cuttack Bali Jatra; Check Vehicle Parking Sites

Cuttack: A number of traffic restrictions are being imposed by the police in view of…

November 14, 2024

Odisha CM Reviews Paddy Procurement Preparations; Mandis To Install CCTVs

Bhubaneswar: Odisha Chief Minister Mohan Charan Majhi on Wednesday held a meeting with district Collectors…

November 13, 2024

Odisha Cabinet Approves GOMATA, Maschyajibi Kalyan & Other Schemes With Rs 3612 Cr Outlay

Bhubaneswar: The Odisha Cabinet on Wednesday approved a new scheme “Goal for Management and Treatment…

November 13, 2024