RBI Keeps Repo Rate Unchanged at 6.5% Seventh Consecutive Time
In the first meeting of the rate-setting panel of the financial year 2024-25, the Central Bank of India Governor Shaktikanta Das made an important announcement. In the first monetary policy of the fiscal year, the Reserve Bank of India (RBI) decided to keep the key policy repo rate unchanged. This announcement was made in a two-day review meeting of the RBI’s Monetary Policy Committee (MPC). This move was already expected and now the RBI Governor Shaktikanta Das stamped it in the review meeting. It is worth noting that the year’s first meeting started on Wednesday, April 3 and wrapped on Friday, April 5.
The Decision Of RBI On Repo Rate
The decision of the RBI regarding the Repo Rate was already assumed and now the stamped decision has come forward. It is the straight 7th time that the RBI has kept the key policy repo rate unchanged at 6.5%. The six-member rate-setting panel directed by Governor Das observed the impact of global headwinds on economic determinants such as the inflation trajectory and the GDP growth of India. As per RBI Governor Das, the decision was taken after the majority of five members at the bi-monthly MPC meeting.
Due to the decision to keep the repo rate unchanged just like the previous seven times, there will be no change in loan interest rates and it will remain unchanged. The RBI Governor also included that inflation is moving closer to targets. He further added that the core inflation has reduced steadily over the last 9 months while the fuel component remained in deflation for the last 6 months.
Mr Das said, “As the uncertainties in food prices continue to pose challenges, the MPC remains vigilant to the upside risk to inflation that may derail the path of disinflation.” However, the outlook for rural and agricultural activity looks to be bright. He believes that global trade will hold the pace and grow faster in the fiscal year 2024-25. He further added that the global economy remained resilient.
