The Reserve Bank of India (RBI) has concluded its 52nd Monetary Policy Committee (MPC) meeting on December 6, deciding to keep the repo rate unchanged at 6.5% for the 11th consecutive time. MPC reached this decision, with four members voting in favour and two members dissenting. The MPC maintains the status quo, with the monetary policy stance remaining neutral. RBI Governor Shaktikanta Das announced the decision in the monetary policy statement released on Friday.
These decisions align with the RBI’s objective of maintaining medium-term consumer price index (CPI) inflation at 4%, within a tolerance band of +/- 2%, while simultaneously promoting economic growth, said Das.
The 52nd MPC meeting commenced on Wednesday, December 4, 2024. Notably, the MPC has held the interest rate steady at 6.50% since February 2023.
Key Takeaways Of The RBI MPC Meeting
- MPC decided by a majority of 4 out of 6 members to keep the policy repo rate unchanged at 6.50%.
- The standing deposit facility (SDF) rate remains unchanged at 6.25%.
- The marginal standing facility (MSF) rate and the Bank Rate kept unchanged at 6.75%.
- RBI has projected a real GDP growth rate of 6.6% for 2024-25, with quarterly growth rates of 6.8% in Q3 and 7.2% in Q4, and further growth of 6.9% in Q1 and 7.3% in Q2 of 2025-26.
- RBI has projected a Consumer Price Index (CPI) inflation rate of 4.8% for 2024-25, with quarterly inflation rates of 5.7% in Q3 and 4.5% in Q4.
- The next meeting of the MPC is scheduled during February 5 to 7, 2025.
What RBI Governor Said?
“The global economy remains stable with growth holding up amidst waning inflation, albeit at a slow pace. Geopolitical risks and policy uncertainty, especially with respect to trade policies, have imparted heightened volatility to global financial markets,” said RBI Governor Das while reading the MPC statement.
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