Hyderabad: RBI Governor Shaktikanta Das who was briefing the media on the outcome of the Monetary Policy Committee (MPC) of the Central Bank said the repo rates which has a bearing on spending of every individual was not revised from 6.5 pc.
The announcement is in consonance with the expectations from the market and the industry. The Reserve Bank of India's Monetary Policy Committee (MPC) did not change the repo rate from 6.50 per cent. The rate increase cycle was paused in April after six consecutive rate hikes aggregating to 250 basis points since May 2022.
In the bi-monthly monetary policy announcement, the RBI Governor said the MPC unanimously decided to keep the rate unchanged at 6.5 per cent. It will help keep interest rate intact while the headline inflation still remains above the RBI's target of 4 per cent and is expected to remain so during the rest of the year, Das said.
The decision of the MPC was arrived at after its three-day deliberations since Tuesday. Das said the MPC met on June 6th, 7th and 8th. He said the inflation projection has been slashed marginally to 5.1 per cent from earlier estimate of 5.2 per cent for current financial year.
He said retail inflation has been below the upper band of 6 per cent for the last two years. The MPC meeting took place against the backdrop of consumer price-based (CPI) inflation declining to a 18-month low of 4.7 per cent in April. Das recently indicated that the May print would be lower than the April numbers. The CPI for May is scheduled to be announced on June 12. The government has mandated RBI to ensure CPI inflation at 4 per cent with a margin of 2 per cent on either side.
Current account deficit expected to moderate further in Q4, remains eminently manageable. Indian rupee has remained stable since January this year. RBI will remain nimble in its liquidity management while ensuring adequate resources for productive requirements of economy, the RBI top boss said. He also noted that the monetary policy actions are delivering desired results.
