The Reserve Bank final hiked the repo price to six.5 per cent in February 2023.
The financial coverage stance continues to be ‘withdrawal of lodging’; RBI MPC additionally retains SDF unchanged at 6.25 per cent
The RBI’s financial coverage committee on Friday determined to maintain the repo price unchanged for the seventh time in a row, at 6.5 per cent. This is in step with the analysts’ expectations. The choice has been taken with 5 members in favour of the choice out of the entire 6. The financial coverage stance continues to be ‘withdrawal of accommodation’. RBI has additionally stored the FY25 GDP projection at 7 per cent. It tasks CPI inflation for 2024-25 at 4.5 per cent.
The RBI MPC additionally stored the SDF unchanged at 6.25 per cent, and MSF and Bank Rates maintained at 6.75 per cent. The SDF is the decrease band of the rate of interest hall, whereas the MSF is the higher band.
RBI Governor Shaktikanta Das on Friday offered the primary bi-month-to-month financial coverage of FY25.
Das stated the RBI stays vigilant in direction of upside dangers to meals inflation.
The price enhance cycle was paused in April final yr after six consecutive price hikes aggregating to 250 foundation factors since May 2022. The RBI final hiked the repo price to six.5 per cent in February 2023.
In February, the Consumer Price-based Inflation (CPI) stood at 5.1 per cent.
The authorities has mandated RBI to make sure CPI inflation at 4 per cent with a margin of two per cent on both facet.
