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 Committee: RBI Governor Shaktikanta Das said that the MPC remained resolute on containing inflation at a target of 4%. This is the sixth consecutive unchanged decision and comes after the Interim Budget was announced on February 1, 2024.
At 6.5 percent, the policy repo rate is at its highest in nearly eight years. With the government presenting an unexpectedly prudent budget on February 1, could the RBI drop a hint on February 8 that rate cuts may be around the corner?