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MUMBAI: The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) on Friday decided to keep the benchmark repo rate unchanged at 6.5% for the 11th straight meeting, and maintain the monetary policy stance ‘neutral’. Further, the MPC that met under the chairmanship of RBI Governor Shaktikanta Das slashed the cash reserve ratio (CRR) by 50 basis points (bps) to 4%.
This has been the eleventh straight meeting since the MPC has kept the rate unchanged.
Amid high inflation and weak GDP growth numbers, the MPC members with a majority of 4:2 decided to keep the repo rate unchanged and take the ‘Neutral’ stance.
The six-member Monetary Policy Committee (MPC) led by Shaktikanta Das decided that the Standing Deposit Facility (SDF) rate remains at 6.25% and the Marginal Standing Facility (MSF) rate and the Bank Rate at 6.75%.
The MPC announced the decisions of its last meeting for 2024.
The committee announced that the limit for collateral-free agricultural loans will be increased from ₹1.6 lakh to ₹2 lakh per borrower, aiming to provide greater financial support and stability to farmers, while facilitating higher credit availability in the agricultural sector.
