RBI MPC meeting live updates: Governor Shaktikanta Das declared on Friday, December 6, 2024, that the Reserve Bank of India (RBI) has decided to maintain the repo rate at 6.5%. The repo rate has now held steady at 6.5% for the 11th consecutive time. The cash reserve ratio (CRR) was lowered by 50 basis points to 4% by the RBI in the meantime.
Additionally, the GDP estimate for the financial year 2024–2025 was cut from 7.2 percent to 6.6%. The GDP fell to a seven-quarter low of 5.4% in the July–September quarter.
It might also be the last MPC led by Governor Das, whose term is coming to an end this month. After being appointed in December 2018, he received an extension in 2021; however, it is unclear if he would continue in office.
What else has the MPC decided?
Additionally, from 4.5 percent to 4 percent, the Cash Reserve Ratio (CRR) has been lowered. Additionally, Das stated that banks will have access to Rs 1.16 crore in liquidity. CRR is a tool used by RBI to manage inflation and curb excessive lending.
SBI Mutual Fund CIO on monetary policy decision
Rajeev Radhakrishnan, CIO—Fixed Income, SBI Mutual Fund, said, “While being cognizant of the incoming growth inflation mix, prudence and practicality required the RBI to address the issue of declining core liquidity. The CRR cut by 50 bps provides adequate signaling with respect to the direction of monetary policy going forward. In the near term we could anticipate other fine-tuning liquidity measures such as repo auctions apart from screen-based OMO in case core liquidity tightens further. Given the Q2FY26 CPI projections, in the absence of any incremental inflation shocks, the Feb review could be live for a repo rate reduction.”
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