RBI may keep repo rate unchanged as inflation eases

Mumbai, June 6 (KNN) It is likely that the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) will keep the repo rate unchanged at 6.5 per cent amid cooling inflation in the country, reported Mint.

RBI has begun its three-day meeting which is the second bi-monthly monetary policy meeting of FY24 on Tuesday and its outcome will be announced on 8 June.

In April the retail inflation rate, based on the consumer price index (CPI) came down to 4.7 per cent.

It is below the RBI’s upper tolerance limit of 6 per cent. CPI inflation in March was at 5.66 per cent.

In the last policy meet in April, RBI MPC had decided to hit a pause button on the rate hike cycle, keeping the key repo rate unchanged at 6.50 per cent. Repo rates are already up by 250 bps since May 2022.

Economists largely expect that the evolving growth-inflation mix calls for a continued pause from the RBI in June, reported Mint.  (KNN Bureau)