RBI Monitory Policy Committee To Meet From June 5 To 7

New Delhi, Jun 5 (KNN) The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) is convening for its second meeting of the current financial year 2024-25 from June 5 to 7.

Market analysts anticipate that the central bank will maintain the repo rate at 6.5 percent, as persistent food inflation continues to pose a concern for the overall inflation outlook.

The six-member MPC is chaired by RBI Governor Shaktikanta Das, whose tenure is set to conclude in December this year.

The committee comprises five additional members including Shashanka Bhide, Ashima Goyal, Jayanth R Varma, Rajiv Ranjan, and Michael Debabrata Patra.

During the previous MPC meeting, the first for FY25, the RBI decided to keep the repo rate unchanged at 6.5 percent.

This marked the seventh consecutive time the rate remained steady, aligning with market expectations.

Governor Das highlighted a steady decline in core inflation over the past nine months and noted that the fuel component of the Consumer Price Index (CPI) had been in deflation for six months.

He emphasised that robust growth prospects provide the policy space to remain focused on controlling inflation.

As the MPC convenes, market participants and economic observers await the committee's assessment of the prevailing economic conditions and its decision regarding the monetary policy stance.

(KNN Bureau)