The RBI MPC decides to keep the policy repo rate under LAF at 6.5%. This is the 7th time that MPC keeps the rate unchanged. These decisions are taken in order to achieve the mid-term target of keeping CPI inflation at 4%.
RBI Monetary Policy on Repo Rate
The MPC has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) at 6.5%. This is for the 7th time that RBI has decided to keep the rate unchanged. This decision was taken in the meeting by a five to one majority. The committee has also decided to ensure that inflation rate for FY25 aligns to the target by reducing the money supply in the system.
BI MPC Meeting 2024 Highlights: Here are the key highlights of RBI policy:
RBI MPC Meeting 2024 Highlights: The RBI Governor Shaktikanta Das announced the first monetary policy of FY25. Here are the key highlights of RBI April policy:
Policy Measures:
- Repo rate kept unchanged at 6.5%
- Policy stance of ‘withdrawal of accommodation’ maintained
- GDP growth forecast for FY25 at 7%. The quarterly projections are – Q1 at 7.1%; Q2 at 6.9%; Q3 at 7% and Q4 at 7%.
- CPI inflation forecast for FY25 at 4.5%. Here are detailed inflation forecast: Q1 at 4.9%; Q2 at 3.8%; Q3 at 4.6% and Q4 at 4.5%
Non-policy measures:
- Scheme for trading of sovereign green bonds at IFSC to be announced
- Introduction of a mobile app to access RBI’s Retail Direct Scheme for participation in GSec market
- Draft circular for LCR framework for banks to be issued shortly
- Dealing in rupee interest rate derivate products for all small finance banks
- Enabling UPI for Cash Deposit Facility
- UPI access for Prepaid Payment Instruments (PPIs) through third-party applications
- Distribution of CBDCs through Non-bank Payment System Operators
RBI MPC Meeting 2024. A look at key policy rates
RBI MPC Meeting 2024 Live: Here are key policy rates at present:
- Repo Rate: 6.5%
- Standing Deposit Facility Rate: 6.25%
- Marginal Standing Facility Rate: 6.75%
- Bank Rate: 6.75%
- Fixed Reverse Repo Rate: 3.35%
