This is the sixth consecutive time that reserve Bank of India The repo rate has been kept unchanged at 6.5%. Repo rate is the rate at which RBI lends to banks.
The meeting of the six-member MPC began on Tuesday and its decisions were announced by RBI Governor Shaktikanta Das on Thursday.
From May 2022, the RBI has increased the repo rate by a cumulative 250 basis points (bps) in an effort to tackle rising inflation. However, from February 2023, it has not adjusted the rate due to a slight reduction in inflationary pressures. Since then, inflation It has consistently hovered near the high end of its mandated 2%-6% range, exceeding its medium-term target of 4%.
The RBI is tasked by the government with maintaining retail inflation, measured by the Consumer Price Index (CPI), at a target of 4 per cent, allowing a fluctuation margin of 2 per cent in either direction.
It is up to the Monetary Policy Committee (MPC) to set the policy repo rate to meet this inflation target, while also considering the objective of promoting economic growth.
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