Industry Odisha Bureau, Jun 5: Following the footsteps of its April month’s decision, the Reserve Bank of India (RBI) unanimously decided at its June month’s Monetary Policy Committee (MPC) meeting to keep the repo rate unchanged at 5.25% by maintaining a neutral stance despite the grave concerns over inflationary pressures triggered by the unresolved West Asia conflict as well as the geopolitical crises.
Soon after the crucial MPC meeting, incumbent RBI Governor Sanjay Malhotra informed media that, “The MPC unanimously decided to keep the repo rate under the Liquidity Adjustment Facility (LAF) unchanged at 5.25%.”
The RBI Governor reportedly stated, “The Standing Deposit Facility (SDF) rate remains at 5% and the Marginal Standing Facility (MSF) rate and the Bank Rate remains at 5.5%.”
Elaborating on the rationale behind undertaking such decisions at the latest MPC meeting, he reportedly said, “While the global economy has been shaped by heightened uncertainty, disruptions to key trade routes and supply chains, increased market volatility, and cautious business sentiment, the Indian economy entered this episode of global turbulence with much better fundamentals than in previous similar episodes and remains relatively well-positioned and resilient.”
The RBI Governor quipped, “It’s important to not only confront and address these challenges, but also, at the same time, take this as an opportunity to further enhance our resilience.”
