RBI Monetary Policy meet: Here's what transpired in the last 8 meetings

The RBI's monetary policy committee (MPC) meeting has begun. The three-day deliberations will conclude on June 8. Headed by RBI Governor Shaktikanta Das, the six-member committee will announce the policy resolution on Wednesday.

The Central bank's MPC meet comes in the backdrop of high inflationary concerns and evolving geo-political scenarios, including Russia's invasion of Ukraine. In the last meeting which was held from May 2-May 4, RBI hiked rates by 40 basis points (bps). Cash Reserve Ratio was increased by 50 bps to bring it to 4.50 per cent.

Prior to May 2022, the last time RBI adjusted the benchmark rate was on 27 March 2020 during the first wave of Covid pandemic. 

As the highly anticipated meeting has already commenced, here is a background of what transpired in the last eight MPC meetings:

May 2- May 4 2022

The 35th off-cycle MPC meeting was held from May 2 to May 4. Governor Das announced an increase in the policy repo rate by 40 basis points to 4.40 per cent. The rate hike was announced to ensure that inflation remains within the target going forward, while also supporting growth.

April 6- April 8 2022

The first MPC meet of financial year 2022-23 was held from April 6 to April 8. During the 34th meet, MPC decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent. The rate setting panel also maintained an accommodative stance.

February 8- February 10 2022

In the 33rd MPC meet, the rate-setting panel reviewed surveys conducted by RBI to gauge consumer confidence. After deliberations and assessment, Das announced that the policy repo rate would remain unchanged at 4.0 per cent. The reverse repo rate also remain unchanged at 3.35 per cent, while maintaining its accommodative stance.

December 6 - December 8 2021

RBI's rate-setting panel met between December 6 to December 8 2021 to discuss in detail the macroeconomic projections of the staff in the MPC meet. Basis the evaluation and assessment, the committee decided to keep the policy repo rate unchanged at 4.0 per cent. The reverse repo rate also remain unchanged at 3.5 per cent, whereas the bank rate was at 4.25 per cent.

October 6 - October 8 2021

Monetary Policy committee decided to keep the policy repo rate unchanged in the meeting which was held in October 2021. The repo rate was at 4.0 per cent. MPC also maintained its accommodative stance to mitigate the impact of Covid-19 on the economy.

August 4- August 6 2021

The 30th MPC meeting, which was held from August 4 to August 6, the Reserve Bank of India's rate-setting panel announced that the policy repo rate would remain unchanged at 4.0 per cent, along with the Bank Rate, which was at 4.25 per cent. The decision was announced to ensure that inflation remained within target.

June 2- June 4 2021

After assessing the current and evolving macroeconomic situation, MPC decided to keep the repo rate unchanged at 4.0 per cent. The marginal standing facility rate was also consequently unchanged at 4.25 per cent. MPC's decision was with the aim of achieving medium-term target for Consumer Price Index (CPI)

April 5- April 7 2021

Monetary Policy Committee decided to keep the repo rate unchanged at 4.0 per cent in the April meeting. The reverse repo rate was also unchanged at 3.35 per cent. The objective of keeping the repo rate unchanged was to ensure growth for the economy amid the backdrop of Covid pandemic.