RBI Holds Repo Rate Steady, Revises GDP Projections Marginally Upward

ENA Economy 2024-06-07 15:26:37 New Delhi, Jun 7 (KNN) In its latest monetary policy review meeting, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) maintained the repo rate at 6.5 per cent for the eighth consecutive time. This decision marks the first MPC gathering since the recently concluded general elections. During the post-meeting press conference, RBI Governor Shaktikanta Das announced an upward revision of the gross domestic product (GDP) growth projection for the fiscal year 2024-25 to 7.2 per cent, an increase from the earlier estimate of 7 per cent. The RBI operates under a statutory mandate to maintain consumer price index (CPI) inflation at 4 per cent. In April, the central bank had kept the repo rate unchanged at 6.5 per cent and maintained its 'withdrawal of accommodation' policy stance. The decisions were taken by a majority vote of 5:1 within the six-member MPC, chaired by Governor Das. The unchanged repo rate translates to no increase in external benchmark lending rates linked to the repo rate, providing relief to borrowers as their equated monthly instalments (EMIs) will remain unaffected. Explaining the rationale behind the rate pause in April, Governor Das had cited persistent uncertainties in food prices as an upside risk to inflation, requiring vigilance to ensure a sustained disinflation path. (KNN Bureau) 38112 https://knnindia.co.in/news/newsdetails/economy/rbi-holds-repo-rate-steady-revises-gdp-projections-marginally-upward 2024-06-07 15:26:37 knnindia.co.in RBI Holds Repo Rate Steady, Revises GDP Projections Marginally Upward