The six-member rate-setting monetary policy committee (MPC) of RBI voted unanimously to hold the policy repo rate at 6.50 per cent.

The MPC, in its first meeting of FY24, also voted by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation remains within the target.

In its previous bi-monthly review of the monetary policy, the RBI on February 08, 2023 increased the repo rate by 25 bps to 6.5 per cent.

After hitting the pause button, RBI Governor Shaktikanta Das said the global economy is facing renewed phase of headwinds, with bank failures overseas bringing financial stability into focus.

Also read: RBI marginally raises FY24 GDP growth projection to 6.5%

Das observed that disinflation is likely to be gradual and protracted. “Our job is not yet finished and the war against inflation has to continue until we see durable decline in inflation closer to the target,” he said.

Das reiterated that the central bank will remain focused on withdrawal of monetary policy accommodation and added, “policy decisions taken since May 2022 are still working through the system”.

On the state of the economy, RBI Governor has said the economic activity remains resilient and pegged India’s GDP growth for FY23 at 7 per cent.