In the RBI Monetary Policy Meeting of 2024, RBI Governor Shaktikanta Das announced the decision of the Monetary Policy Committee (MPC) to maintain the interest rates at 6.5 per cent, with a 5-1 majority. Das mentioned that while inflation is gradually approaching the RBI’s target, it has not yet reached the desired 4 per cent mark. During the subsequent press conference, Governor Das responded to inquiries regarding regulatory actions taken against Paytm. He emphasized the central bank’s commitment to fostering innovation and technological advancements in the financial sector.
The RBI Monetary Policy for February 2024 was disclosed on Thursday at 10 am, aligning with market expectations by keeping the repo rate unchanged at 6.5 per cent. Professor Jayanth Varma was the sole MPC member advocating for a 0.25 per cent reduction in the repo rate. The bi-monthly MPC meeting began on Tuesday, February 6.
Currently, the repo rate remains at 6.5 per cent following a 0.25 per cent increase by the RBI in February 2023. Inflation has predominantly stayed above or at the upper threshold of the RBI’s tolerance level.
Governor Das underscored in his remarks that the Consumer Price Index (CPI) inflation target of 4 per cent has yet to be attained. He noted a substantial moderation in inflation from the peaks observed during the summer of 2022.
Following the policy announcement, RBI Governor Shaktikanta Das addressed queries from the press, predominantly revolving around the regulatory measures taken against payment aggregator Paytm. Das reiterated the RBI’s stance of fostering and endorsing innovation within India’s financial sector.