Repo Rate Unchanged for 8th Consecutive Time | 07 Jun 2024

Recently, the Reserve Bank of India (RBI) decided to keep the policy rate unchanged at 6.5% for the eighth consecutive time.

The Monetary Policy Committee (MPC) will maintain a tight control on inflation and remain watchful of elevated food inflation amid the expectation of a normal monsoon.
The rate increase cycle was paused in April last year after six consecutive rate hikes, totalling 250 basis points since May 2022.
The RBI raised the growth projection to 7.2% from an earlier estimate of 7% for the current financial year.
Inflation targeting in India is a monetary policy framework adopted in 2016, where the Central Government, in consultation with the RBI, sets a target inflation rate once in five years.