Central bank keeps repo unchanged at 6 5 per cent for sixth straight time

RBI policy: Central bank keeps repo unchanged at 6.5 per cent for sixth straight time. RBI MPC Meet: The Reserve Bank of India on Thursday kept its repo rate unchanged at 6.5 percent in its Monetary Policy Committee (MPC) meeting. The Reserve Bank of India on Thursday kept repo rate unchanged at 6.5 percent in its Monetary Policy Committee (MPC) meeting on February 8. This is the sixth consecutive time that the central bank has maintained a status quo. “Uncertainty in food prices continue to impinge on headline inflation. Momentum in domestic activities continues to be strong,” the governor said in the briefing. Monetary policy must continue to be actively dis-inflationary, Das added. Five out of six members voted in favour of the rate decision. “Global growth is expected to remain steady in 2024, with heterogeneity across regions. Though global trade momentum remains weak, it is exhibiting signs of recovery and is likely to grow faster in 2024. Inflation has softened considerably and is expected to moderate further in 2024,” the central bank governor said. In its last Monetary Policy Committee (MPC) meeting on December 8, the central bank had kept the repo rate unchanged for the fifth time in a row. Governor Shaktikanta Das had raised the growth projection to 7 per cent for the current financial year from 6.5 per cent earlier. The monetary police committee is entrusted with the responsibility of deciding the policy repo rate to achieve the inflation target, keeping in mind the objective of growth The retail inflation in the current financial year has declined after touching a peak of 7.44 per cent in July 2023, it is still high and was 5.69 per cent in December 2023, though within the Reserve Bank's comfort zone of 4-6 per cent. Last month, the RBI governor had said that the Indian economy should record a growth rate of 7 per cent in the next financial year and inflation is likely to ease further. Das had also credited the Centre for structural reforms it undertook in recent years, saying they have boosted the medium and long-term growth prospects of the Indian economy. “Chances of soft landing have improved and markets have reacted positively. However, geopolitical risks and climate risks remain matters of concern,” the governor had remarked. During her interim budget address to parliament, finance minister Nirmala Sitharaman had said that India would reduce its budget gap sharply in fiscal year 2024-25 and focus on infrastructure and long-term reforms to drive growth. RBI policy, Central bank, repo rate, Monetary Policy Committee, MPC meeting, Reserve Bank of India, inflation, growth projection, retail inflation, Indian economy, structural reforms, fiscal year, budget gap, infrastructure, Nirmala Sitharaman, news, economy, monetary policy, interest rates, financial news, RBI governor, economic updates, policy decisions, RBI MPC, global economy, inflation target, fiscal policy, monetary measures, economic outlook, financial stability, geopolitical risks, climate risks, market reactions, fiscal reforms, economic analysis, RBI decision, government policies, economic indicators, monetary stance, fiscal management, economic commentary, RBI updates, economic trends, fiscal targets, economic forecast, financial markets #RBIpolicy #Centralbank #repo #MonetaryPolicyCommittee #MPCmeeting #ReserveBankofIndia #inflation #growth #IndianEconomy #structuralreforms #fiscalyear #budget #infrastructure #NirmalaSitharaman #news #economy #interestrates #financialnews #RBIGovernor #economicupdates #policydecisions #global economy #fiscalpolicy #monetarymeasures #economicoutlook #financialstability #geopoliticalrisks #climaterisks #marketreactions #fiscalreforms #economicanalysis #RBIDecision #governmentpolicies #economicindicators #monetarystance #fiscalmanagement #economiccommentary #RBIupdates #economic trends #fiscaltargets #economicforecast #financialmarkets