RBI MPC Meeting 2024: Interest rates unchanged for sixth time in a row
The decision to keep the rates unchanged was taken unanimously. The Monetary Policy Committee also decided by a 5:1 majority to remain focused on "withdrawal of accommodation."
The Reserve Bank of India did not hike its lending rate (repo rate), in line with the consensus expectations of market watchers and economists. The repo rate was left unchanged at 6.5%, as announced in the December policy. A CNBC-TV18 poll had expected the Monetary Policy Committee to maintain a status quo. This is the sixth quarter in a row that the central bank has left interest rates unchanged.
The decision to keep the rates unchanged was taken unanimously. The Monetary Policy Committee also decided by a 5:1 majority to remain focused on "withdrawal of accommodation."
The MPC also left the Marginal Standing Facility (MSF) and Standing Deposit Facility (SDF) rates unchanged at 6.75% and 6.25% respectively.
Speaking to CNBC-TV18's Shereen Bhan on the sidelines of the World Economic Forum (WEF) 2024 at Davos, Governor Shaktikanta Das had quashed hopes of an early rate cut. The governor had explained that price stability is the bedrock for sustainable growth, and a premature pivot in policy can prove costly for the economy.
"Our policy has to remain actively disinflationary till we reach the target of 4% on a durable or sustainable basis, and that is our current stance," the governor had said back then.
The global economy continues to present a mixed picture, the Governor said, adding that the Indian economy has performed remarkably well amidst uncertain times. "Inflation is on a downward trajectory," Governor Das said.
For financial year 2025, India's GDP growth is projected at 7%, the Governor said. For the first quarter of the next financial year, the GDP growth is projected at 7.2%, while for the second quarter, it is projected at 6.8%, higher than the 6.5% projected earlier.
On the inflation front, the MPC expects the country's consumer price inflation for financial year 2024 to remain at 5.4%. For financial year 2025, the CPI inflation is projected to be 4.5%. The risks are evenly balanced.
Some of the additional measures announced by the central bank include:
First Published: Feb 8, 2024 10:05 AM IST
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