RBI Monetary Policy announcement: From repo rate to inflation target, 5 things you should look out for

RBI MPC Meeting: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), headed by Governor Shaktikanta Das, on Friday announced its decision to keep the repo rate unchanged at 6.5 per cent by a 5:1 majority. The SDF rate remains at 6.2 per cent, while MSF rate and bank rate stand at 6.75 per cent, Das said. The central bank has also maintained the stance of 'withdrawal of accommodation'.

This is first meeting of the RBI MPC of the FY24-25 and this is the seventh consecutive occasion where the central bank has opted to maintain the rate at its current level.

The repo rate stands as the benchmark interest rate at which the RBI extends liquidity through the liquidity adjustment facility (LAF) to banks. This liquidity is provided against the backing of government and other securities that are deemed acceptable by the RBI.