RBI keeps repo rate unchanged at 6.5%

RBI keeps repo rate unchanged. This means the loan interest rates too are likely to remain unchanged

April 5, 2024

RBI maintains status quo, keeps repo rate unchanged at 6.5 percent for 7th consecutive time

In the first Monetary Policy Committee (MPC) announcement for the Financial Year 2024-25 (FY25), the RBI Governor kept the repo rate unchanged at 6.5 percent for the seventh consecutive time.

The Reserve Bank of India (RBI) governor Shaktikanta Das announced the MPC’s decision on interest rates after the two-day review meeting of the central bank’s rate-setting panel.

The MPC meeting commenced on April 3 and concluded today (April 5).

Consequently, the Standing Deposit Rate (SDF) will be 6.25 percent, and the Marginal Standing Facility and the Bank Rate will be 6.75 percent, RBI Governor Das said.

Das said the MPC decided to continue with the “withdrawal of accommodation” stance to control inflation.

The RBI would continue with its disinflationary policy to ensure a stable growth path for the economy, he added.

Das said that food price inflation continues to weigh on the trajectory going ahead.

Inflation has now come down to around 5 percent and is well below the RBI’s upper tolerance limit of 6 percent, but the Central bank is determined to bring it down to its medium-term target of 4 percent, which it considers ideal for stable growth in the economy.

The RBI maintained the status quo on policy rates and stances in its last review, which was held in February 2024 but the decision was not unanimous and one member recommended a rate cut of 25 basis points.

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