RBI- MPC Meeting Details: The RBI Governor expressed concern over the rapid rise in inflation across the country. Reserve Bank of India Governor Shaktikanta Das has warned that despite the surge in economic activity, the persistently high rate of inflation is a major cause of concern for the economy. He had said this when raising the key rate by 0.50% at the beginning of the month to control the rise in inflation.
Information received from MPC meeting
This information comes from the central bank’s Monetary Policy Committee (MPC) meeting details released on Wednesday. The six-member MPC, led by Das, presented the monetary policy review on June 8. In this context, the repo of the key rate was increased for the second consecutive time.
According to the details of the three-day meeting, the governor said that the high rate of inflation remains a cause for concern, but the recovery in economic activities continues and is gaining momentum. He said now is a good time for another hike in the policy rate to effectively fight inflation. Therefore, I will be voting for a pension rate increase of 0.50%. This is in line with the evolving inflation and growth picture and will help mitigate the effects of adverse supply issues.
Repo rate up to 4.9%
Das said the increase in the repo rate will reinforce the RBI’s commitment to price stability. The main objective of the central bank is to keep inflation under control. This is a prerequisite for sustainable medium-term growth. The six committee members voted in favor of increasing the repo rate from 0.50% to 4.9%.