The six-member monetary policy committee voted by a majority of 5:1 to keep the repo rate unchanged at 6.50 per cent in its last meeting of FY24 as retail inflation continues to be above its target of four per cent.

This is the sixth meeting on the trot that the MPC has maintained a status quo on the repo rate (the interest rate at which banks draw funds from Reserve Bank of India to overcome short-term liquidity mismatches).

The six member also voted by a majority of 5:1 to continue with the “to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth” monetary policy stance.

Retail inflation had hit a four-month high of 5.69 per cent in December 2023 due to increase in food prices against 5.55 per cent in November.