RBI MPC retains repo rate at 6.5%, projects 6.5% GDP & 5.1% inflation for FY24

Not belying the expectations, the Reserve Bank of India's Monetary Policy Committee (MPC) did not change the repo rate from 6.50 percent while projecting gross domestic product (GDP) and inflation at 6.5 percent and 5.1 percent respectively.

Announcing the decision of the MPC after its three-day deliberations, RBI Governor Shaktikanta Das said on Thursday that the committee unanimously decided to keep the repo rate at 6.5 percent.

Das said taking into account the economic factors, the MPC has predicted GDP growth at 6.5 percent in FY24.

As regards the inflation rate, the MPC forecast was 5.1 percent for 2023-24 taking into account the rabi crop harvest/monsoon projections and favourable near-term inflation trend.

Das also said uncertainty exists due to geopolitical situations, monsoon, and others.

The MPC met on June 6th, 7th and 8th.