RBI did not change the Repo Rate for the eighth time in a row, there was no relief in EMI either

The Reserve Bank of India has not made any change in the repo rate after the meeting of the Monitoring Policy Committee. This time too, the RBI has decided to keep the repo rate unchanged at 6.5 percent. This decision has been taken in the backdrop of economic uncertainties at the domestic and global level.

The MPC took a majority decision, with four out of six members agreeing, to keep the repo rate unchanged. As a result, the standing deposit facility (SDF) rate remains at 6.25 per cent, while the marginal standing facility (MSF) rate and the bank rate remain at 6.75 per cent.

Governor Das emphasised the importance of a balanced approach to monetary policy in the post-policy press conference. Das reiterated the Monetary Policy Committee’s commitment to gradually withdraw accommodative measures to ensure that inflation remains in line with the target range while supporting economic growth.

The RBI Governor said, “Monetary policy should remain disinflationary and remain steadfast in its commitment to bring inflation within the target range of 4 per cent on a durable basis and maintain price stability on a solid basis.”

RBI revised its growth projections for the current financial year 2024-25 to 7.2 per cent GDP growth. Quarterly growth projections are 7.3 per cent for the first quarter, 7.2 per cent for the second quarter, 7.3 per cent for the third quarter and 7.2 per cent for the fourth quarter. Governor Das highlighted that risks to the growth scenario are evenly balanced. The decision to keep the repo rate unchanged signals RBI’s cautious approach towards balancing the objectives of controlling inflation and supporting economic recovery. The announcement comes at a time when the global economy is grappling with uncertainties arising from geopolitical tensions and the impact of the COVID-19 pandemic.

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