In a relief for borrowers, the Reserve Bank of India’s monetary policy committee has decided to keep the repo rate unchanged at 6.5%.
Announcing the decision of the monetary policy committee (MPC) that met for three days on April 3, 4 and 5, RBI governor Shaktikanta Das said on Thursday that the central bank also withdrew the accommodative stance to tackle inflation.
Das further said that the real GDP growth for 2023-24 stood at 6.5%, with real GDP growth at 7.8% in Q1, 6.2% in Q2, 6.1% in Q3, and 5.9% in Q4.
Inflation is projected at 5.2% for FY2023-24, Das said, adding, “The war against inflation has to continue till we reach the RBI’s target.”
It was anticipated earlier that the RBI will likely hike the policy rate by 25 bps in a bid to keep inflation within its 6% target.
“The RBI will maintain agile approach for liquidity management, and will manage govt borrowing programme in non-disruptive manner,” RBI governor said.
