RBI keeps repo rate unchanged at 6.5% in June 2024 to curb persistent inflation
Economy · 04 Sept 2026 · Source: Internet
The Reserve Bank of India maintained the repo rate at 6.5% for the third consecutive meeting, citing inflationary pressures despite modest growth.
On 7 June 2024, the RBI’s Monetary Policy Committee (MPC) voted unanimously to retain the repo rate at 6.50%, marking continuity in monetary stance amid a consumer price index (CPI) of 5.2% in May.
Core inflation remained above the 4% medium‑term target, driven primarily by food prices and rising fuel costs, prompting the RBI to adopt a cautious approach to avoid premature rate cuts.
The decision is expected to keep borrowing costs steady for banks, influencing loan disbursements to the MSME sector and impacting the credit‑to‑GDP ratio, which stood at 27.8% in Q1 2024.
Analysts note that a stable repo rate supports the government's fiscal consolidation efforts while providing a predictable environment for foreign investment.