RBI Monetary Policy Committee meeting: policy rate unchanged at 6.5% for 11th time in a row

RBI's MPC maintains policy repo rate at 6.50% for the 11th time, focusing on inflation alignment and growth support.

 The Reserve Bank of India’s Monetary Policy Committee (MPC) on Friday (December 6, 2024) decided to keep the policy repo rate unchanged at 6.50% for the 11th consecutive time.

The last time the MPC had increased rates to 6.5% was in February 2023. 

The MPC also decided unanimously to continue with the neutral stance and to remain unambiguously focused on a durable alignment to the 4% target of inflation while supporting growth.

The MPC took note of the recent slowdown in growth momentum which translates into a downward revision of the growth forecast of this year. The second half of this year and next year growth outlook remains resilient but warrants monitoring.

Governor Shaktikanta Das announced the central bank’s decision on policy rates in the RBI’s concluding day Monetary Policy Committee (MPC) meeting on Friday. “India’s economy has been growing healthily in the last 3 years. It is always the effort of the RBI and the MPC to follow the mandate in letter and spirit,” he said while making the announcement.

Monetary policy is important because it affects the life of people, each and every segment of the economy, howsoever small or big, from vegetable vendors to middle class to corporates, farmers, and industry and business and it has wide ranging implications

“Our effort is to follow the flexible inflation targeting framework as provided in the RBI Act and the RBI’s mandate is to maintain price stability while supporting growth. Price stability is important for every segment of the economy. At the same time, growth is also very important.”