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RBI Keeps Repo Rate Unchanged at 6.5% Amid Economic Projections

In line with analyst expectations, RBI has left the repo rate unchanged at 6.5 percent. India’s central bank has kept the rate unchanged since April 2023. India’s central bank has projected a retail inflation of 4.5 percent in fiscal 2024-25 and expects GDP to expand by 7 percent.

The Reserve Bank of India (RBI) announced its decision on short-term lending rate, or repo rate today and kept it unchanged at 6.5 percent. Governor Shaktikanta Das, who heads the six-member Monetary Policy Committee (MPC), will later address the post policy press conference.

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has decided to keep the repo rate — the main policy rate — unchanged at 6.5 percent and maintain the policy stance of ‘withdrawal of accommodation’ in the monetary policy.

Both the decisions were taken in a majority 5:1 voting by the six-member MPC, headed behind RBI Governor Shaktikanta Das.

“The Monetary Policy Committee (MPC) met on 3rd, 4th and 5th April 2024. After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, it decided by a 5 to 1 majority to keep the policy repo rate unchanged at 6.50 percent,” Governor Das in his address.

Consequently the standing deposit facility (SDF) rate remains at 6.25 percent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 percent; The MPC also decided by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.

Indian benchmark indices continue to trade in red territory. Sensex is trading 78.68 points, or 0.11 percent lower at 74,146.51 while Nifty is trading 23.55 points, or 0.10 percent lower at 22,493.40.

“This decision also has implications for banks and financial institutions, particularly concerning lending rates like home loan interest rates, which are linked to the RBI’s repo rate. A stable repo rate signals consistency in interest rates for borrowers, providing assurance to homebuyers regarding steady loan interest rates, beneficial for both new loans and existing ones with floating rates. Stable interest rates not only enhance affordability for potential homebuyers but also foster consumer confidence, thereby sustaining demand in the real estate market,” says Adhil Shetty, CEO,


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