Reflecting its cautious stance amid the current economic uncertainties, the Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 6.5 percent. This is the ninth consecutive time that the central bank has opted for stability in its monetary policy.
Governor Das said, “After a detailed assessment of the evolving macroeconomic and financial conditions and the overall outlook, it was decided by a majority of four members to keep the policy repo rate unchanged at 6.5 per cent.”
“The standing deposit rate remains at 6.25 per cent and the marginal standing facility rate and the Bank Rate at 6.75 per cent. The MPC also decided by a majority of four out of six members that it will continue to focus on rolling back accommodation to ensure that inflation remains in line with the target over time and to support growth. So as you can see, it is a good amount,” he said.
The decision to keep the repo rate steady comes amid persistent concerns about inflation, which remains above the RBI's target range. The central bank's commitment to bring inflation down to the target of 4 percent is facing challenges due to food inflation and other economic factors.
Governor Das emphasized that the RBI is alert to inflationary pressures and will take necessary steps to maintain price stability while supporting the country's economic recovery. The MPC's decision reflects a balanced approach, aimed at controlling inflation without hampering growth.
The RBI governor cautioned that there should be no room for complacency as core inflation has declined significantly, while subinflation has slowed in the first quarter led by a persistent fall in food prices.
RBI Governor Shaktikanta Das made this announcement in a press briefing after the conclusion of the three-day meeting of the Monetary Policy Committee (MPC) on Thursday. The decision was taken after a detailed assessment of the current macroeconomic and financial conditions as well as future economic projections.
