RBI holds repo rate at 6.5% for ninth time in a row

Last Updated10/08/2024

The Reserve Bank of India’s Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 6.50% for the ninth consecutive time.

Of the six members of the MPC, four voted in favor of keeping the repo rate unchanged, which is aimed at taming inflation.
Consequently, the standing deposit facility rate remains at 6.25%, while the marginal standing facility rate and the bank rate stand at 6.75%.
The MPC also decided by a 4-2 majority to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.
the MPC had judged it important for monetary policy to stay the course while maintaining a close vigil on the inflation trajectory and its risks.
Inflation is moderating but the pace of disinflation is uneven and slow.
- Still there is distance to cover to align inflation with target
Hence, the MPC has reiterated the need to continue with the disinflationary stance of withdrawal of accommodation, to ensure that inflation progressively aligns to the target, while supporting growth
Taking various factors into consideration, real GDP growth for 2024-25 has been projected at 7.2%
Real GDP growth for the first quarter of 2025-26 is projected at 7.2%.