In its February 2024 review, the Monetary Policy Committee (MPC) led by the Governor of the Reserve Bank of India (RBI) opted to maintain the repo rate, also known as the key interest rate, at 6.5 percent.
In its latest meeting of FY24, the six-member committee voted with a 5:1 majority to maintain the repo rate unchanged, as retail inflation persists above the 4% target. This marks the sixth consecutive meeting where the MPC has opted for a status quo on the repo rate.
Next Monetary Policy Committee (MPC) meeting scheduled for April 3-5, 2024.
Note:
- Since the April 2023 monetary policy, the RBI has kept the repo rate unchanged at 6.5%.
Key highlights RBI MPC Meeting in February 2024:
- Repo rate held steady at 6.5%.
- FY25 GDP growth projected at 7%, slightly lower than this fiscal.
- Retail inflation expected to average 5.4% this fiscal, decreasing to 4.5% in FY25.
- Monetary transmission by financial institutions remains incomplete.
- Current economic momentum expected to continue into the next fiscal.
- Forex reserves at $622.5 billion, adequate for meeting foreign obligations.
- RBI to introduce offline functionality in CBDC-Retail for transactions in areas with limited internet connectivity.
- Indian rupee exchange rate maintaining stability this fiscal.
- Regulatory framework for electronic trading platforms under review to enable market makers access offshore ETPs offering permitted Indian Rupee products.
Current Rates are as follows:
| Policy Repo Rate | 6.50% |
| Standing Deposit Facility Rate | 6.25% |
| Marginal Standing Facility Rate | 6.75% |
| Bank Rate | 6.75% |
| Fixed Reverse Repo Rate | 3.35% |
| CRR | 4.50% |
| SLR | 18.00% |
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