RBI August 2024 MPC Meeting

Current Context: The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) held its meeting from August 5-7, 2024.

• Key Decisions:
• Repo rate unchanged: The MPC decided to maintain the repo rate at 6.50% for the ninth consecutive time.
• Stance unchanged: The MPC retained the 'withdrawal of accommodation' stance to ensure monetary policy remains vigilant on risks.
• Growth projection unchanged: The RBI maintained its growth projection for the current fiscal year at 7.2%.
• Reasons for the Decision:
• Inflation concerns: While core inflation has eased, food inflation remains a concern, significantly impacting headline inflation.
• Global uncertainties: The global economic outlook continues to be uncertain with potential risks.

Question:

1 What was the decision regarding the repo rate during the RBI MPC meeting held from August 5-7, 2024?

• A) Increased to 6.75%
• B) Decreased to 6.25%
• C) Unchanged at 6.50%
• D) Increased to 7.00%

Answer: C) The MPC decided to maintain the repo rate at 6.50% for the ninth consecutive time.