RBI’s Monetary Policy Committee Decides to Keep Interest Rates Unchanged
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) held its 49th meeting from June 5 to 7. The committee decided to keep the key interest rates unchanged to balance economic growth and inflation control.
Key Decisions
The policy repo rate remains at 6.50%, the standing deposit facility (SDF) rate at 6.25%, and the marginal standing facility (MSF) rate and Bank Rate at 6.75%.
Voting Details
| Member | Decision |
|---|---|
| Dr. Shashanka Bhide | Keep rates unchanged |
| Dr. Rajiv Ranjan | Keep rates unchanged |
| Dr. Michael Debabrata Patra | Keep rates unchanged |
| Shri Shaktikanta Das | Keep rates unchanged |
| Dr. Ashima Goyal | Reduce rates by 25 basis points |
| Prof. Jayanth R. Varma | Reduce rates by 25 basis points |
Comments from Members
RBI Governor Shaktikanta Das emphasized the importance of price stability for sustainable growth and supported keeping the policy rate unchanged. He highlighted the need to address high food inflation to align inflation with the 4% target.
Dr. Shashanka Bhide noted the rise in projected inflation and stressed the importance of a watchful approach to prevent high food inflation from affecting other prices.
Dr. Ashima Goyal argued that India should not follow the US Federal Reserve’s rate cuts and pointed out that India’s economic conditions are different.
Prof. Jayanth R. Varma advocated for a rate cut, citing lower growth projections and benign core inflation.
Dr. Rajiv Ranjan and Dr. Michael Debabrata Patra both supported maintaining the status quo, with Dr. Patra highlighting the persistent high food prices as a major concern.
