The MPC meeting comes amid anticipation that the RBI will keep benchmark interest rates constant at 6.5 per cent to ease retail inflation and push economic growth. 
Special 
The MPC meeting comes amid anticipation that the RBI will keep benchmark interest rates constant at 6.5 per cent to ease retail inflation and push economic growth. Reserve Bank of India (RBI) Governor Shaktikanta Das said that the monetary policy committee (MPC) decided to keep the repo rate unchanged at 6.5 per cent and the Standing Deposit Facility (SDF) rate has been pegged at 6.25 per cent. The central bank kept bank rates at 6.75 per cent. He added that the MPC unanimously agreed to the withdrawal of the accomodative stance to tackle inflation. Meanwhile, the RBI also lowered its retail inflation projections for FY 24 from 5.2 per cent to 5.1 per cent.
Shaktikanta Das said that India's GDP growth is projected at 8% for Q1, 6.5% for Q2, 6% for Q3, and 5.7% for Q4. The central bank pegged India's GDP growth at 6.5% for FY2023-24.
Das also noted that the Indian economy and financial sector are strong and resilient amid global uncertainties as he announced the central bank’s monetary policy committee (MPC) meeting outcome on Thursday. He further said that inflation has moderated and foreign exchange reserves are also stable.
Also read: RBI cuts inflation projection for FY24 to 5.1%
The six-member RBI MPC meeting began on Tuesday. The MPC meeting comes amid anticipation that the RBI will keep benchmark interest rates constant at 6.5 per cent to ease retail inflation and push economic growth. The RBI put a pause on its rate hike cycle after the last MPC meeting in April. The central bank has stayed with the 6.5 per cent repo rate. Before this, the Central Bank hiked repo rate by 250 bps since May 2022 to stem inflation.
Meanwhile, Consumer price-inflation (CPI) declined to an 18-month low of 4.7 per cent in April this year. Shaktikanta Das indicated that the May numbers would be lower compared to that of April. CPI numbers for May are slated to come out on June 12. The government has mandated the RBI to ensure CPI inflation at 4 per cent with a margin of 2 per cent on either side. Check out latest updates on BusinessToday.In:
Also read: RBI MPC June: RBI keeps repo rate unchanged at 6.50%
11:10 am: Pause in rates hikes to instill a sense of optimism among borrowers: Sotheby's International Realty
Amit Goyal, Managing Director, India Sotheby's International Realty said: "In line with expectations, the Reserve Bank of India (RBI) has maintained the policy rate at 6.5% for the second consecutive time, following a series of six consecutive rate hikes. The RBI's decision reflects their cautious approach in light of the persistent inflationary pressures and their potential impact on domestic consumption growth. However, the positive aspect is that the pause in rate hikes will instill a sense of optimism among borrowers."
11:05 am: Net inflow in non-resident deposits increased to USD 8 billion in FY'23 from USD 3.2 billion in previous year
11:00 am: Should you reinvest in FDs? Here's what experts think
Adhil Shetty, CEO of Bankbazaar.com said: "Consider reinvesting your FDs now for higher returns. Most banks provide rates of 7% or more on select deposit tenors. Smaller banks are at 7.5% and many small finance banks are above 8%. Senior citizens are being offered a premium of 25 to 75 basis points. Some government banks are offering super senior citizens (those above 80) additional premium".
10:55 am: Rupee flat after RBI repo rate decision
Rupee was at 82.5850 to the US dollar compared to 82.5950 before the policy decision.
10:50 am: How did the markets react to RBI MPC announcements?
Indian equity benchmarks were trading higher today after Reserve Bank of India kept the key policy (repo) rate unchanged at 6.50 per cent in its June bi-monthly policy meeting. The domestic indices traded in the green in late morning deals, led by gains in banks, financials, metals and consumer durables.
10:45 am: Banks can now issue Rupay prepaid forex cards, says Shaktikanta Das
Shaktikanta Das, in his MPC statement, said that banks can now issue Rupay prepaid forex cards.
10:40 am: RBI to expand the scope of e-Rupee vouchers
The central bank has decided to expand the scope of e-Rupee vouchers by allowing non-bank companies to issue such instruments
10:35 am: Inflation numbers by RBI
FY24-- 5.1%
Q1-- 4.6%
Q2-- 5.2%
Q3-- 5.4%
Q4-- 5.2%
10:32 am: Rupee remained stable since January 2023: RBI Governor
RBI boss Shaktikanta Das said that the Indian Rupee has remained stable since January this year.
10:30 am: RBI lowers retail inflation projection during FY24
Reserve Bank of India (RBI) has lowered its projections for retail inflation during FY24 to 5.1 per cent from its earlier estimates of 5.2 per cent. -- PTI
10:30 am: CPI inflation eased during March-April 2023, says RBI Governor
RBI Governor Shaktikanta Das said: "In India, Consumer Price Inflation eased during March-April 2023 and moved into the tolerance band, declining from 6.7% in 2022-23. Headline inflation, however, is still above the target as per the latest data and is expected to remain so according to our projections for 2023-24. As per our assessment, inflation will remain above 4% throughout 2023-24".
10:25 am: Liquidity in surplus mode, says Shaktikanta Das
Shaktikanta Das said average system liquidity is in surplus mode and could go up further as Rs 2,000 notes get deposited in the banks
10:20 am: GDP growth
Q1-Q4 and FY2023-24 GDP growth numbers at a glance:
Q1--8%
Q2--6.5%
Q3--6%
Q4--5.7%
FY 2023-24 — 6.5 per cent
10:15 am: Headline inflation may remain above 4 per cent throughout FY24: RBI Governor
Reserve Bank of India (RBI) governor said that headline inflation is expected to remain above 4 per cent throughout FY24
10:11 am: MPC to remain vigilant on inflation: Shaktikanta Das
RBI monetary policy committee (MPC) will remain vigilant on inflation, says RBI Governor
10:10 am: MPC keeps repo rate constant
RBI MPC has kept the repo rate unchanged at 6.5 per cent, says Shaktikanta Das
10:05 am: Indian economy, financial sector strong, resilient amid global uncertainties: RBI Governor Shaktikanta Das
10:00 am: Rupee falls 7 paise against US dollar ahead of RBI policy decision
Rupee falls 7 paise to 82.59 against US dollar in early trade ahead of RBI policy decision.
09:50 am: Will El Nino play spoilsport in India's economic trajectory?
Mahesh Agarwal, National Head- Wealth at AUM Capital Markets said: "Considering the drop in CPI inflation along with the effects on GDP and GST kitty, we anticipate that the Monetary Policy Committee (MPC) will continue to hold the pause button. In its previous policy, the MPC clearly stated that its next move would depend on data, and the latest inflation numbers were within the target range. Furthermore, IMD has indicated a normal monsoon, despite some concerns about El Nino, which will provide support to the RBI. Liquidity above 1.00 lac crores is comfortable as evident from WACR remaining around 6.25%, so no concern arising for the same. From a global perspective, there has been a correction in global metal prices, and oil prices are also under control, both of which contribute to reducing the inflationary trend."
09:45 am: WIll RBI announce repo rate cut?
Manish Chowdhury, Head of Research at Stoxbox said: "With the Indian economy looking on a firmer footing, we do not think that the RBI would commit itself to an early rate cut in the near future as some of the previous rate cuts are still making their effect felt on the demand side of the equation".
09:35 am: Here’s what experts expect from the RBI MPC outcome today
SBI report-- India's largest public lender State Bank of India (SBI) said in a recent report that it believes the repo rate would remain unchanged while adding the central bank could lower inflation estimates for FY24. The report also quoted the RBI which said the pause in rates was a "temporary arrangement".
“With sizeable banking failures across AEs, and a fair probability of contagion spreading across markets despite concerted action from policy makers/regulators to check the same, RBI’s endeavor to sidestep from synchronous rate hike was a courageous gambit, especially since climate risk could upend inflationary projections,” said the SBI report.
Colliers India-- Vimal Nadar, Head of Research at Colliers India, said that the RBI is likely to keep repo rate unchanged at 6.5 per cent and may continue to focus on the withdrawal of the accommodative stance to keep a check on inflation and maintain economic growth.
Nadar said: “RBI is likely to remain focused on withdrawal of accommodation and keep the repo rate unchanged at 6.5%, in a bid to progressively align inflation within its target while maintaining growth. Consumer price index (CPI) eased to an 18-month low at 4.7% during April 2023 led by monetary policy tightening measures undertaken during 2022, however the high frequency indicators will be closely watched in the current volatile global environment”.
Signature Global India -- Signature Global India founder and chairman Pradeep Aggarwal believes the central bank should consider a policy rate cut in case there is a possibility to do so.
Aggarwal said: “Our expectation from the upcoming RBI policy is that they will most likely maintain the status quo. However, if there is an opportunity, we believe the apex bank should consider announcing a cut in policy rates, even if it is a small one. This could have a positive impact on consumer sentiment, benefiting the interest-sensitive real estate sector. Of course, it is essential for the government to ensure that any rate cut is effectively passed down to the consumers, ensuring the desired impact on the industry”.
Resurgent India-- Differing slightly from Nadar and Aggarwal, Jyoti Prakash Gadia, Managing Director—Resurgent India—said pressure on food prices and impact on economy due to uncertainties related to monsoon and geo-political tensions may prompt the RBI to take a wait-and-watch approach.
Gadia said: “However, the pressure on food prices and adverse impact on the economy due to uncertainties about monsoon as well as prolonged geo-political tensions are expected to prompt RBI to adopt a wait-and-watch approach thereby maintaining the repo rate at the existing level”.
Copyright©2025 Living Media India Limited. For reprint rights: Syndications Today
