Here’s what happened in last 8 MPC meetings

Headed by Reserve Bank of India (RBI) Governor Shaktikanta Das, the sixmember monetary policy committee (MPC) will announce the decision on Wednesday.

The meeting comes against the backdrop of high inflationary concerns and evolving geopolitical scenarios, including Russia's invasion of Ukraine. In the last meeting held from May 2 to May 4, the RBI hiked the repo rate by 40 basis points (bps). Cash Reserve Ratio (CRR) was increased by 50 bps to 4.50 per cent.

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

Here is a background of what happened in the last eight MPC meetings:

May 2-4, 2022

In the 35th off-cycle MPC meeting, Das announced an increase in the policy repo rate by 40 bps to 4.4 per cent. The rate hike was announced to ensure that inflation remains within the target going forward, while also supporting growth.

April 6-8, 2022

The first MPC meet of financial year 2022-23 was held from April 6 to April 8. The MPC decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4 per cent. The rate setting panel also maintained an accommodative stance.

February 8-10, 2022

In the 33rd MPC meet, the ratesetting panel reviewed surveys conducted by the RBI to gauge consumer confidence. After deliberations and assessment, Das announced that the policy repo rate would remain unchanged at 4 per cent. The reverse repo rate also remained unchanged at 3.35 per cent, while maintaining its accommodative stance.

December 6 -8, 2021

The panel met to discuss in detail the macroeconomic projections of the staff in the MPC meet. Based on the evaluation and assessment, it decided to keep the policy repo rate unchanged at 4 per cent. The reverse repo rate also remained unchanged at 3.5 per cent, whereas the bank rate was at 4.25 per cent.

October 6-8, 2021

The committee decided to keep the policy repo rate unchanged in the meeting. The repo rate was at 4 per cent. The MPC also maintained its accommodative stance to mitigate the impact of Covid-19 on the economy.

August 4-6, 2021

In the 30th MPC meeting, the panel announced that the policy repo rate would remain unchanged at 4 per cent, along with the bank rate, which was at 4.25 per cent. The decision was announced to ensure inflation remained within target.

June 2-4, 2021

After assessing the current and evolving macroeconomic situation, the MPC decided to keep the repo rate unchanged at 4 per cent. The marginal standing facility rate was also consequently unchanged at 4.25 per cent. The MPC'S decision was with the aim of achieving medium-term target for Consumer Price Index.

April 5-7, 2021

The committee decided to keep the repo rate unchanged at 4 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-19 pandemic.