Not belying the expectations, the Reserve Bank of India's Monetary Policy Committee (MPC) did not change the repo rate from 6.50 per cent while projecting gross domestic product (GDP) and inflation at 6.5 per cent and 5.1 per cent respectively.
Announcing the decision of the MPC after its three-day deliberations, RBI Governor Shaktikanta Das said on Thursday that the committee unanimously decided to keep the repo rate at 6.5 per cent. Das said taking into account the economic factors, the MPC has predicted GDP growth at 6.5 per cent in FY24. As regards the inflation rate, the MPC forecast was 5.1 per cent for 2023-24 taking into account the rabi crop harvest/monsoon projections and favourable near term inflation trend. Das also said uncertainty exists due to geopolitical situation, monsoon and others.
The MPC met on June 6th, 7th and 8th.