Reserve Bank of India (RBI) Governor Shaktikanta Das said that Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 6.5 per cent as retail inflation continues to be above its target of 4 per cent. The decision comes amid economic uncertainties both domestically and globally. The MPC decided to keep the repo rate steady by a a majority decision, RBI Governor said.
He said, “When the projected GDP growth of 7.2% for 2024-25 materializes, it will be the fourth consecutive year of growth at or above 7%. Headline CPI continues to be on a disinflationary trajectory. Monetary Policy has played an important role in this process. This is evident from the decline in headline inflation by 2.3 percentage points between the first quarter of 2022-23 and the fourth quarter of 2023-24. Supply-side developments and government measures have also contributed to this moderation of headline inflation. Repeated food price shocks, however, slowed down the overall disinflation process.”
