RBI MPC Meeting Highlights 2024: Repo rate remained at 6.5%

On 8th February 2024, the Reserve Bank of India (RBI) released the Monetary Policy for February 2024, in which the RBI kept the repo rate unchanged at 6.5%. The six-member Monetary Policy Committee (MPC) voted in a 5:1 majority to keep the repo rate unchanged at 6.5%, as retail inflation continues to be above its target of 4%. The Reserve Bank of India (RBI) projected the Consumer Price Index (CPI) for FY24 at 5.4%, while 4.5% for FY25. The RBI also set the real GDP growth for FY25 at 7%. This article all the important aspects of RBI's Monetary Policy Committee Meeting Highlights for February 2024.

RBI MPC Meeting Highlights 2024: Monetary Policy Committee

What is the Monetary Policy Committee?

• The Monetary Policy Committee (MPC) is set by the Union Government and led by the Reserve Bank of India (RBI).

• Nature of MPC: Statutory body

• It is constituted as per Section 45ZB under the RBI Act of 1934 by the Central Government.

• Reason: To increase the GDP growth and reduce the percentage of inflation in India

• First Meeting: It was conducted on 3rd October 2016 in Mumbai.

Monetary Policy Committee Members:

• The Monetary Policy Committee (MPC) of the RBI is a committee of six- members, out of which three are internal and the remaining are external experts. Here is the detail of the MPC members:

• Internal Experts:

  • Governor as the Chairperson, ex officio

  • Deputy Governor in charge of monetary policy as Member, ex officio;

  • 1 officer of the Bank to be nominated by the Central Board as Member ex-officio.

• External Experts:

  • The three external experts are appointed by the Central Government.

Current 6 Members of the Monetary Policy Committee

Members	Description
Shaktikanta Das	Governor of RBI
Michael Debabrata Patra	Deputy Governor of RBI
Rajiv Ranjan	Officer of RBI nominated by the Central Board, Member
Prof. Ashima Goyal	Professor, Indira Gandhi Institute of Development Research, Member
Prof. Jayanth R. Varma	Professor, Indian Institute of Management Ahmedabad, Member
Dr. Shashanka Bhide	Senior Advisor, National Council of Applied Economic Research, Member.

RBI MPC Meeting Highlights 2024: Current Rates

The RBI’s MPC kept the Repo Rate unchanged at 6.50%, while the Standing Deposit Facility (SDF) kept at 6.25%. Check the below table for all policy rates:

Policy Rates	Current Rates (As of 8th February 2024)
Policy Repo Rate	6.50%
Standing Deposit Facility (SDF)	6.25%
Marginal Standing Facility Rate	6.75%
Bank Rate	6.75%
Fixed Reverse Repo Rate	3.35%
CRR	4.50%
SLR	18.00%

RBI MPC Meeting Highlights 2024: Inflation Projection

The six-member Monetary Policy Committee (MPC) has maintained its inflation forecast at 5.4% for FY 2023-2024.

CPI inflation for 2024-25 is forecast at 4.5 per cent and quarter-wise projections as follows:

Quarter	Rates
Quarter 1	5%
Quarter 2	4%
Quarter 3	4.6%
Quarter 4	4.7%

Note: The Government has mandated the central bank to ensure the retail inflation based on the Consumer Price Index (CPI) remains at 4 per cent with a margin of 2 per cent on either side.

Retail inflation to average 5.4% this fiscal year (2023-24), to come down to 4.5% in FY25

RBI MPC Meeting Highlights 2024: Real GDP Growth Projection

RBI projected a real GDP growth of 7% for FY 25 with risks evenly balanced, lower than 7.3% this fiscal year.

Quarter (FY24)	Rates
Quarter 1	7.2%
Quarter 2	6.8%
Quarter 3	7%
Quarter 4	6.9%

RBI MPC Meeting Highlights 2024: Next Meeting

The RBI will conduct the next monetary policy committee (MPC) meeting on April 3-5, 2024.

RBI MPC Meeting 2024: Key Highlights

• As on February 02, India’s forex reserves stood at $622.5 billion.

• World Bank estimates inward remittances of $135 million for India in FY24.

• Current account deficit in Q2 of FY24 declined to 1% of GDP

• Net FPI inflows of $32.4 billion as of Feb 6, compared to net outflows of $6.7 billion year ago.

• Vegetables, along with pulses and fruits, pushed retail inflation to a four-month high of 5.7 per cent in December.

• Retail inflation based on the Consumer Price Index (CPI) was 5.5% in November 2024

• Industrial growth rate based on the Index of Industrial Production (IIP) were 11.6% in October.

RBI MPC Meeting 2024: Frequently Asked Questions (FAQs)

1. The RBI's Monetary Policy Committee (MPC) decided to keep the Repo rate at what percent?

Ans: In February 2024, MPC decided to keep the Repo rate at 6.5%.

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2. What is India’s forex reserves stood on 2nd February 2024?

Ans: As of February 02, India’s forex reserves stood at $622.5 billion.

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3. What is the Real GDP growth projected by the RBI for FY 25?

Ans: RBI projected a real GDP growth of 7% for FY 25 with risks evenly balanced, lower than 7.3% this fiscal year.

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4. When will the Reserve Bank of India conduct the next monetary policy committee (MPC) meeting in April 2024?

Ans: The RBI will conduct the next monetary policy committee (MPC) meeting on April 3-5, 2024.

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5. In February 2024, the RBI has decided the CPI inflation for 2024-25 is forecast at what percent?

Ans: CPI inflation for 2024-25 is forecast at 4.5 per cent.

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6. In February 2024, Retail inflation to average 5.4% this fiscal year (2023-24), to come down to what percent in FY25?

Ans: Retail inflation to average 5.4% this fiscal year (2023-24), to come down to 4.5% in FY25

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7. List the members of the RBI's Monetary Policy Committee.

Ans: Shaktikanta Das, Governor of RBI

Michael Debabrata Patra, Deputy Governor of RBI

Rajiv Ranjan, Officer of RBI nominated by the Central Board, Member

Prof. Ashima Goyal, Professor, Indira Gandhi Institute of Development Research, Member

Prof. Jayanth R. Varma, Professor, Indian Institute of Management Ahmedabad, Member

Dr. Shashanka Bhide, Senior Advisor, National Council of Applied Economic Research, Member.

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