Mumbai : The Monetary policy committee (MPC) of RBI has decided to keep repo rate unchanged at 6.5%. Subsequently, the Standing Deposit facility rate has remain unchanged at 6.25%. Also Marginal Standing facility rate and Bank Rate has remain unchanged at 6.75%.
“The MPC has voted unanimously to keep the repo rate unchanged at 6.5%. Still, the MPC is ready to act if necessary” said RBI Governor Shaktikanta Das. He also said that the MPC is remained focused on withdrawal of accommodation.
“On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (April 6, 2023) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent.
The standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth” said the MPC statement.
“We are living in very volatile times. The Sudden announcement of output cut by OPEC+ a few days ago and the resultant jump in crude oil prices is another evidence of this volatility. The overall outlook thus remains dynamic and fast evolving” said Das.
India’s monetary policy panel has aimed for non-disruptive normalisation from pandemic era measures.
Financial conditions evolved in line with productive needs. Projections for FY24 point to softening in inflation. Disinflation is expected to be gradual and protracted.