RBI holds rates, vows to keep price stability
repo rate unchanged at 6.50%
RBI holds rates, vows to keep price stability
RBI's Monetary Policy Committee (MPC) has kept the policy repo rate unchanged at 6.50%.
The RBI forecast real GDP growth for 2023-24 at 6.5% and projected CPI for the current fiscal at 5.1%.
• Monetary Policy Committee- it is entrusted with the task of fixing the benchmark policy rate required to control inflation within the specified target level and to add value and transparency to monetary policy decisions.
It has 6 members- three appointed by RBI and the remaining nominated by an external selection committee.
Decisions are based on majority, with each member having one vote. The RBI Governor has the casting vote.
• real GDP- Real GDP is an inflation-adjusted calculation that analyses the rate of all commodities and services manufactured in a country for a fixed year.
• CPI- Consumer Price Index (CPI) is one of the price indices used to measure the change in the retail prices of goods and services. It measures the change from the perspective of a buyer.