RBI keeps repo rate unchanged, raises GDP forecast to 7.2%

• The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 6.5%.

Highlights:

• The decision, taken at the MPC’s meeting, marks the eighth time in a row that the policy rate has been put on hold to keep the focus on battling high inflation.
• The MPC has revised its GDP growth forecast upwards from the earlier 7% estimate to 7.2% for the financial year 2024-2025.
• It has also decided to remain focused on withdrawal of accommodation to ensure that inflation does not accelerate, while supporting growth.
• These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2% while supporting growth

elims Takeaway

• MPC
• Repo rate