• UGI USER
  • Jun 13, 2023
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Policy Rates Unchanged : RBI

News: The Monetary Policy Committee (MPC) of the Reserve Bank of India has agreed to maintain the current policy rates in light of the changing macroeconomic environment.

This halt follows a prior cautious rate increase of 250 basis points intended to contain inflation.

The choice indicates a careful strategy to balance managing inflation with promoting economic growth.

Policy Rates Are the Same:

Under the liquidity adjustment facility (LAF), the policy repo rate stays at 6.50%.

The rate for the standing deposit facility (SDF) is still 6.25%.

Both the bank rate and the marginal standing facility (MSF) rate remain at 6.75%.

For 2023–2024, CPI inflation is predicted to be 5.1% assuming a typical monsoon.

The MPC wants to gradually remove accommodative measures in order to bring inflation to the target while promoting growth.

The goal is to reach the 4% medium-term consumer price index (CPI) inflation target within a +/- 2% tolerance.