In the RBI's Monetary Policy Committee (MPC) meeting held on 9 October 2024, how many members supported the decision to maintain the repo rate at 6.5%?

The correct answer is Five out of six.

Key Points

• The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) held a meeting on 9 October 2024.
• During this meeting, a decision was made to maintain the repo rate at 6.5%.
• Out of the six members of the MPC, five members supported this decision.
• The repo rate is a crucial tool used by the RBI to control inflation and maintain economic stability.
• This decision reflects the majority consensus among the MPC members regarding current economic conditions.

Additional Information

• Monetary Policy Committee (MPC)
  • The MPC is a committee constituted by the Reserve Bank of India and consists of six members.
  • It is responsible for setting the repo rate to achieve the inflation target set by the government.
  • The MPC meets bi-monthly to review the monetary policy stance.
• Repo Rate
  • The repo rate is the rate at which the central bank of a country (RBI in India) lends money to commercial banks.
  • It is used by monetary authorities to control inflation and stimulate economic growth.
  • A higher repo rate makes borrowing costlier for banks, which can reduce the money supply and control inflation.
• Economic Stability
  • Economic stability refers to a situation where an economy experiences constant growth and low inflation.
  • It is crucial for maintaining investor confidence and fostering economic development.
  • Central banks use various tools, including the repo rate, to achieve economic stability.
• Inflation Control
  • Inflation control is one of the primary objectives of the RBI's monetary policy.
  • Controlling inflation ensures the purchasing power of the currency remains stable.
  • Tools like repo rate adjustments help in managing inflation effectively.