Important
Economy
RBI Monetary Policy Committee Keeps Repo Rate Unchanged at 6.5% to Anchor Inflation
The RBI's Monetary Policy Committee (MPC) voted unanimously to keep the repo rate at 6.5%, prioritizing the alignment of retail inflation with the 4% medium-term target.
14 Jun 2026
Source: LiveMint
UPSC Exam Syllabus Relevance
Relevant for UPSC GS Paper III (Indian Economy - Monetary Policy, Inflation) and Banking exam general awareness section.
Key Core Points for Revision
* Repo rate maintained at 6.5% for the eighth consecutive review.
* Inflation target of 4% remains central to MPC policy guidelines.
* Domestic economy is projected to grow strongly, providing fiscal buffers.
* Stance of policy remains focused on 'withdrawal of accommodation'.
Possible Prelims MCQs
With reference to the Monetary Policy Committee (MPC) of RBI, which of the following statements is/are correct?
1. It decides the RBI's benchmark interest rates.
2. It is a 12-member body including the Governor of RBI.
3. It functions under the chairmanship of the Union Finance Minister.
Select the correct answer using the code below:
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (a)
Possible Mains Practice Questions
Discuss the role of the Monetary Policy Committee (MPC) in controlling inflation in India. How do supply-side shocks like food inflation limit the effectiveness of monetary policy tools? (10 Marks, 150 Words)