RBI Monetary Policy 2024 highlights: Status quo No 8. Growth, inflation and the way forward

As expected, the Reserve Bank of India (RBI) on June 7 kept the key lending rate unchanged at 6.5 per cent. The action was in line with what majority of the economists and bankers had predicted .

The messaging is clear–fighting inflation continues to be the singular focus of RBI governor and there is no going back from the stand till inflation eases comfortably back to the medium-term target of 4 per cent.

Key takeaways

• The rate-setting panel, by a 4:2 majority, voted to keep the repo rate steady at 6.5%.
• The MPC has revised its real GDP growth forecast for FY25 to 7.2%, up from 7%.
• The Reserve Bank of India has maintained its inflation forecast for this fiscal year at 4.5%.
• Additionally, the Standing Deposit Facility (SDF) rate remains at 6.25%, while the Marginal Standing Facility (MSF) and bank rate are held at 6.75%.