RBI MPC Meeting 2024 Highlights: RBI cuts CRR to 4%, repo rate unchanged at 6.5%
RBI MPC 2024 Highlights, RBI Monetary Policy Meeting Outcomes, RBI MPC Meeting December 2024 News & Highlights: Notwithstanding the second quarter (Q2FY25) GDP growth slowing to a two-year low, the rate-setting monetary policy committee (MPC) is likely to stay put on the repo rate as retail inflation rose beyond its 6% tolerance level in October. The six-member MPC, is seen giving primacy to bringing down retail inflation to 4%. The MPC members are expected to hold their ground despite recent observations of a couple of Union cabinet ministers and the chief economic adviser about the need for softer interest rates. At the last MPC meeting, the members had decided by a majority of 5 out of 6 to keep the policy repo rate unchanged at 6.5%. Further, they had decided unanimously to change the stance to ‘neutral’ and to remain unambiguously focused on a durable alignment of inflation with the target, while supporting growth. There may be no urgency to cut the repo rate to support growth could be gauged from observations, in the RBI’s November monthly bulletin.
RBI MPC 2024 Highlights, RBI Monetary Policy Meeting Outcomes, RBI MPC Meeting December 2024 News & Highlights: Notwithstanding the second quarter (Q2FY25) GDP growth slowing to a two-year low, the rate-setting monetary policy committee (MPC) is likely to stay put on the repo rate as retail inflation rose beyond its 6% tolerance level in October. The six-member MPC, is seen giving primacy to bringing down retail inflation to 4%. The MPC members are expected to hold their ground despite recent observations of a couple of Union cabinet ministers and the chief economic adviser about the need for softer interest rates. At the last MPC meeting, the members had decided by a majority of 5 out of 6 to keep the policy repo rate unchanged at 6.5%. Further, they had decided unanimously to change the stance to ‘neutral’ and to remain unambiguously focused on a durable alignment of inflation with the target, while supporting growth. There may be no urgency to cut the repo rate to support growth could be gauged from observations, in the RBI’s November monthly bulletin.
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