RBI Monetary Policy 2024: RBI keeps repo rate unchanged at 6.5%


New Delhi, June 07, 2024.

The Reserve Bank of India’s Monetary Policy Committee (MPC), which had kickstarted its meeting on Wednesday, has kept the repo rate unchanged at 6.5 per cent for the eight consecutive time. This is the first time the MPC met after the results of the Lok Sabha election were declared.


Addressing a press conference, RBI Governor Shaktikanta Das revised the GDP (gross domestic growth) projection to 7.2 per cent for FY 25, up from 7 per cent that it had expected earlier.


Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank Said" RBI’s status quo on rates and stance was in line with market expectations, but the split in voting patterns clearly shows the increasing probability towards a pivot in the policies ahead. However, we believe the robust growth will give enough opportunity for the MPC to remain on a wait and watch mode until better clarity comes from monsoons and quality of expenditure from the Budget. We see room for stance change in the August policy with a plausible easing from October meeting."


The MPC meeting outcome was cheered by the equity market, but the debt market didn’t react much to the MPC meeting announcement. The market would perhaps be more keen to look for the Union Budget announcement on the government's fiscal roadmap going forward. Insurance companies with a greater focus on fixed-income portfolios in their life funds would not have been significantly impacted by this MPC decision. The equity portfolio of the insurance companies has made some positive MTM gains, though, said Ajit Banerjee, CIO - Shriram Life Insurance Company.


RBI working to fortify digital trust within financial ecosystem: Ankit Ratan of Signzy

The RBI’s focus on building a secure financial system is commendable. Last week, RBI published its Annual Report which highlighted a rise in digital payment frauds. This surge emphasizes the urgency of tackling financial scams. Proactively, the RBI is working towards fortifying digital trust within the financial ecosystem, said Ankit Ratan, Co-founder & CEO, Signzy.