RBI Monetary Policy June 2024: Key Lending Rate Unchanged At 6.5%

RBI’s Monetary Policy Committee (MPC) meeting was scheduled from 5 – 7 June, 2024. The key lending rate at which the RBI lends to commercial banks currently stands at 6.5%. 

The rate hike cycle was initiated by RBI two years back in 2022 and since then, the repo rate has been increased by 250 basis points.

The key lending rate remains unchanged for the 8th consecutive time as robust economic growth continues to provide space for focussing on reducing the inflation level. 

RBI Governor Shaktikanta Das said in a press conference, “The world has gone through one crisis after another in recent years, but the Indian economy exhibits strong fundamentals. We need to remain vigilant in an uncertain global environment.” He further added, “RBI remains committed for aligning inflation to 4 per cent on a durable basis.”

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According to Mr. Das, four out of the six MPC members had voted in favor of keeping the repo rate unchanged.

To study the impact on inflation, the RBI is likely to closely observe the incoming Modi-led NDA new government’s policies, especially with regard to the fiscal initiatives and measures.