The Reserve Bank of India’s Monetary Policy Committee has decided to keep the repo rate steady at 6.50 per cent. This decision was announced by RBI Governor Shaktikanta Das following the MPC meeting on April 3-5. The repo rate is the rate at which the RBI lends to commercial banks.
Governor Shaktikanta Das stated, “The repo rate has been retained at 6.5 per cent.” Additionally, the Standing Deposit Rate (SDF) will remain at 6.25 per cent, while the Marginal Standing Facility and the Bank Rate will be at 6.75 per cent. The decision to maintain the current rates comes amid expectations from senior economists.
The MPC majority decision to retain the repo rate comes as the central bank aims to strike a balance between supporting economic growth and controlling inflation. The decision was made after assessing various factors impacting the economy, including global economic trends and domestic fiscal policies. The RBI continues to monitor the situation closely to ensure stability in the financial markets.
While some analysts were anticipating a rate cut to stimulate economic growth, the MPC’s decision reflects a cautious approach to monetary policy. The RBI remains vigilant in its efforts to support economic recovery while maintaining price stability. The MPC’s decision will have implications for borrowers and investors alike, as interest rates play a crucial role in shaping investment decisions and consumption patterns.
