The RBI’s Monetary Policy Committee (MPC) convened its first meeting following the Lok Sabha Elections 2024 and decided to maintain the repo rate at 6.5%. 

This marks the eighth consecutive instance of the MPC maintaining the key policy rate at the same level. The committee last adjusted the benchmark interest rate back in February 2023. 

Additionally, the RBI forecasts a 7.2% real GDP growth for the financial year 2024-25.

The Monetary Policy Committee invariably meets for three days before announcing its decision at the end of that period. The next RBI MPC meeting is scheduled for August 6, 2024. 

The MPC is required to meet at least four times a year.

The latest updates from the bi-monthly RBI Monetary Policy Committee meeting are as follows. 

The repo rate, the key interest rate, remains unchanged at 6.5%. It was last increased in February 2023. The focus is now on reducing inflation by withdrawing an accommodative monetary policy.

The growth projection for FY25 has been raised to 7.2% from 7%, while the inflation forecast for FY25 remains at 4.5%. There is still concern about food inflation.

The current account deficit for FY25 is expected to remain well within the sustainable level, and foreign exchange reserves reached a new high of USD 651.5 billion on May 31, 2024.

The bulk deposit threshold has been raised to Rs 3 crore from Rs 2 crore, and there are plans to rationalise export and import regulations under the Foreign Exchange Management Act (FEMA).

Additionally, the RBI will establish a Digital Payments Intelligence Platform to use advanced technologies to reduce payment fraud risks, and auto-balance replenishment for Fastag, NCMC, and UPI-Lite wallets will be brought under the e-mandate framework.

One can get the complete information of the MPC meeting held on June 7, 2024, on the RBI’s official website.