RBI Keeps the Repo Rate Unchanged At 6.50 Per Cent The MPC is a six-member committee comprising Das, Rajiv Ranjan, Ashima Goyal, Shashanka Bhide, Jayanth Varma, and Michael Patra, which held meetings on the 3rd, 5th and 6th of April 2023. The decision to keep the repo rate was a unanimous one.
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On Thursday, the Reserve Bank of India announced it had decided to maintain the repo rate at 6.50 per cent. The previous change in the key rate took place in February 2023 when RBI hiked the repo rate by 25 basis points to 6.50 per cent. This was the first monetary policy statement made by RBI for the financial year 2023-24.
Repo rate refers to the rate at which banks deposit money with RBI. "The decision to pause the repo rate is for this meeting only," Das noted.
The MPC is a six-member committee comprising Das, Rajiv Ranjan, Ashima Goyal, Shashanka Bhide, Jayanth Varma, and Michael Patra, which held meetings on the 3rd, 5th and 6th of April 2023. The decision to keep the repo rate was a unanimous one.
Additionally, the RBI governor shared that the standing deposit facility (SDF) rate, the marginal standing facility (MSF), and the Bank Rate will also remain unchanged at 6.25 per cent, 6.75 per cent and 6.75 per cent, respectively.
The MPC also decided with a majority of 5:1 to continue focusing on the withdrawal of accommodation to ensure the inflation progressively aligns with the targets while encouraging growth, indicating that the rate will be increased if necessary.
"Inflation has softened from its elevated levels a year ago; however, it still remains above the upper tolerance band. Projections for 2023-24 point to a softening in inflation, though the disinflation is likely to be gradual and protracted, given the rigidity in core or underlying inflation pressures. At this stage, we remain watchful of the evolving outlook and the impact of our actions during the past one year on the broader real economy. While we have kept the policy rate unchanged, it is important to bear in mind that that this decision was taken on the basis of our assessment of the macroeconomic and financial conditions with reference to the information available up to today," shared Das.
