Governor Shaktikanta Das announced that the Reserve Bank of India’s Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 6.5% following their latest meeting. Despite significant progress in reducing inflation without harming economic growth, food inflation remains a concern.

Das highlighted that while overall inflation is moderating, driven by a drop in core inflation and ongoing deflation in fuel prices, elevated food prices pose a risk to the disinflation trajectory. The MPC aims to maintain a disinflationary stance to achieve a stable inflation rate of 4%, essential for sustained economic growth. Therefore, the committee remains focused on the withdrawal of accommodation to ensure stable inflation expectations and effective policy transmission.

RBI Governor Shaktikanta Das announced that the real GDP growth for the financial year 2024-25 is projected at 7.2%, with quarterly growth rates of 7.3% for Q1, 7.2% for Q2, 7.3% for Q3, and 7.2% for Q4. He noted that the risks to this projection are evenly balanced. Additionally, the RBI has decided to keep the repo rate unchanged at 6.50% for the eighth consecutive time, with the decision made by a 4:2 majority.

The Monetary Policy Committee (MPC) consists of the following members:
– RBI Governor (Chairperson)
– Deputy Governor of RBI in charge of Monetary Policy
– One officer of RBI nominated by the Central Board
– Professor Ashima Goyal, Indira Gandhi Institute of Development Research
– Professor Jayanth R Varma, Indian Institute of Management, Ahmedabad
– Dr. Shashanka Bhide, Senior Advisor of the National Council of Applied Economic Research, Delhi

Governor Shaktikanta Das will announce the MPC’s decisions live on RBI’s official YouTube channel and its official handle on X (formerly Twitter) at 10 am on Friday.

The RBI Monetary Policy Committee (MPC) will announce its decisions on key interest rates, growth forecast, and inflation outlook on Friday, June 7, following a three-day meeting. Governor Shaktikanta Das will present the MPC’s verdict at 10 am. The six-member committee, which includes the RBI Governor, Deputy Governor, an RBI-nominated officer, and three external members, meets at least four times a year to set the policy repo rate to achieve the inflation target.

Each member has one vote, with the Governor holding a second or casting vote in case of a tie. Additionally, each member provides a statement explaining their vote on the proposed resolution. The announcement will be live-streamed on the RBI’s official YouTube channel and its official handle on X (formerly Twitter).