RBI Maintains Status Quo: Repo Rate Unchanged At 6.5%

The Reserve Bank of India has once again kept the repo rate unchanged. This decision, announced on Thursday, marks the continuation of a steady monetary policy stance by the central bank.

What Happened: The Reserve Bank of India’s Monetary Policy Committee (RBI MPC) has decided to keep the repo rate steady at 6.5%. This marks the seventh consecutive time the rate has been held constant.

The decision to keep the rate unchanged was anticipated by several market analysts, who have been closely monitoring the RBI’s moves in the context of global economic shifts and domestic inflationary pressures. The RBI MPC’s consistency in this regard suggests a strategic balance between fostering growth and containing inflation.

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RBI Governor Shaktikanta Das emphasized the need for the MPC to remain vigilant regarding food inflation. The six-member rate-setting panel voted 5:1 in favor of maintaining the status quo on interest rates while focusing on the withdrawal of the accommodative stance.

The repo rate is a critical benchmark for determining the cost of borrowing for banks and ultimately influences the flow of money in the economy. The unchanged repo rate has implications for loan EMIs, savings interest rates, and overall economic momentum.

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Posted In: GovernmentMacro Economic EventsRegulationsEconomicsRBI