MUMBAI: Following the completion of its three-day Monetary Policy Committee (MPC) meeting on Thursday, the Reserve Bank of India (RBI) published its key decision. The RBI opted to stop its rate hiking cycle and keep the repo rate at 6.5 percent at the previous MPC meeting in April. Given the softening of retail inflation in April and the possibility of further reduction, experts predicted that the central bank would maintain this rate.
According to reports, the standing deposit facility (SDF) rate stays at 6.25%, while the marginal standing facility (MSF) rate and the Bank Rate remain at 6.75%, according to RBI Governor Shaktikanta Das.
The retail inflation forecast has been reduced to 5.1% from 5.2% previously. Headline inflation remains over the 4% objective and is expected to remain so for the remainder of the year. The net inflow of non-resident deposits was USD 3.2 billion in FY'23, up from USD 3.2 billion the previous year.
The central bank maintained its GDP growth projections for the current fiscal year (April 2023 to March 2024) at 6.5 percent while cutting retail inflation to 5.1 percent from 5.2 percent previously.
The RBI made the critical decision to stop its rate hiking cycle and leave the repo rate unchanged at 6.5 percent during the April meeting of the Monetary Policy Committee (MPC). This move comes after a series of cumulative repo rate hikes totaling 250 basis points since May 2022, all with the goal of addressing inflation worries.
The RBI made the critical decision to stop its rate hiking cycle and leave the repo rate unchanged at 6.5 percent during the April meeting of the Monetary Policy Committee (MPC). This move comes after a series of cumulative repo rate hikes totaling 250 basis points since May 2022, all with the goal of addressing inflation worries.
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