The Reserve Bank of India on August 8, 2024, announced to keep the policy repo rate unchanged at 6.50 per cent for the ninth time in a row. The decisions of the Monetary Policy Committee (MPC) taken at its bi-monthly meeting were announced by RBI Governor Shaktikanta Das. This was the first MPC meeting following the 2024-25 Union Budget on July 23.
The standing deposit facility (SDF) rate remains at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. The MPC also decided by a majority of 4 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.
These decisions are in tune with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of plus or minus two percent, while supporting growth. The Committee met on August 6-8 and the next meeting is scheduled for October 7-9.
The last change to the repo rate was on 8 February, when it was increased to 6.5 per cent from 6.25 per cent. Meanwhile, equity benchmark indices Sensex and Nifty closed nearly 1 per cent down after the central bank's decision to keep the policy rate unchanged, saying food inflation remains stubborn.
The rupee also consolidated in a narrow range and settled for the day lower by 1 paisa at 83.96 (provisional) against US dollar after the RBI expectedly kept the benchmark interest rate unchanged.
