The Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) in its third bi-monthly policy for FY24 has unanimously decided to keep repo rate unchanged at 6.50%. This is the third time the MPC decided to maintain the status quo on the repo rate. It was in line with the market expectations. With this, standing deposit facility rate remained unchanged at 6.25% and Marginal standing facility (MSF) rate stand at 6.75%.
MPC also decided to remain focused on withdrawal of accommodation. Besides, FY24 GDP growth projection unchanged at 6.50%. Moreover, MPC remains resolute in its commitment to align inflation with the 4% target and anchor inflation expectations. FY24 inflation projection raised to 5.4% from 5.1%.
