RBI retains repo rate at 6.5%, GDP growth at 7%, inflation at 5.4%

CHENNAI:  As predicted by economists, the Reserve Bank of India's Monetary Policy Committee (MPC) did not change the repo rate from 6.5 per cent.

Announcing the decision of the MPC after its three-day deliberations,RBI Governor Shaktikanta Das said on Friday that the committee unanimously decided to keep the repo rate at 6.5 per cent. He also said that five out of six MPC members voted for the continued stance of withdrawal of accommodation.

Das said taking into account the economic factors, the MPC has predicted GDP growth at 7 per cent in FY24.

As regards the inflation rate, the MPC forecast was 5.4 per cent for 2023-24 taking into account the various domestic issues, including potential agricultural produce.

Das also said uncertainty exists due to the geopolitical situation. The MPC is alert and prepared to take necessary actions that are needed, he said.

The MPC met on December 6-8.