RBI Governor Shaktikanta Das emphasised that the MPC will continue to closely monitor inflation and is steadfast in its commitment to align it with the targeted level
The Reserve Bank of India (RBI) has kept its retail inflation forecast unchanged, projecting an average of 5.4 per cent for the fiscal year 2023-24. In its latest announcement during the bi-monthly monetary policy, RBI Governor Shaktikanta Das revealed that the Monetary Policy Committee (MPC) unanimously opted to maintain the repo rate at 6.5 per cent, marking the fourth consecutive decision to keep rates steady after raising them by 250 basis points (bps) since May 2022 in an effort to curb rising prices.
Governor Das emphasised that the MPC will continue to closely monitor inflation and is steadfast in its commitment to align it with the targeted level. He also mentioned that the growth projection for the current financial year remains at 6.5 per cent, with risks evenly balanced.
This MPC meeting took place amidst the backdrop of Consumer Price-based Inflation (CPI) reaching 6.83 percent in August, and the inflation data for September is expected to be released next week.
It’s worth noting that the government has entrusted the RBI with the task of maintaining CPI inflation at 4 per cent, allowing for a margin of 2 per cent on either side.