RBI’s Monetary Policy: Repo Rate Remains Unchanged
Four out of the six MPC members were in favour of this rate.
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC), consisting of six members, has opted to keep the repo rate steady at 6.5 percent for the ninth consecutive time, amid ongoing concerns over high food inflation.
The decision to maintain this rate was supported by four out of the six MPC members.
RBI Governor Shaktikanta Das pointed out that inflation is generally generally going downwards.
The RBI last reduced the repo rate in May 2020, cutting it by 40 basis points to 4 percent in response to the economic impact of the COVID-19 pandemic.
Since then, the RBI has increased the rate by 250 basis points to 6.5 percent to combat rising inflation as the economy stabilised post-pandemic.
The decision to maintain this rate was supported by four out of the six MPC members.