RBI Holds Repo Rate Steady at 6.50% in June 2024 Monetary Policy Review
Economy · 07 Sept 2026 · Source: Internet
The Reserve Bank of India kept the repo rate unchanged at 6.50% during its June 2024 meeting, citing moderating inflation but persistent price pressures in food and fuel.
In its bi‑monthly policy review held on 7 June 2024, the RBI maintained the repo rate at 6.50% and the reverse repo rate at 3.15%, while projecting CPI inflation to stay within the 4% target band over the next year.
The central bank highlighted that headline inflation eased to 5.1% in May, driven by a slowdown in food price growth, but warned that global commodity price volatility could pose risks. The RBI also announced a modest increase in the cash reserve ratio for select banks to curb excess liquidity.
For the banking sector, the unchanged rate signals stability in loan‑to‑deposit ratios and credit growth, while the RBI's emphasis on digital payment infrastructure continues to shape the industry landscape.