Unchanged: RBI Continues to Maintain its Repo Rate at 6.50% The standing deposit facility (SDF) rate, the marginal standing facility (MSF) rate and the Bank Rate also remain unchanged
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The apex banking body of India, the Reserve Bank of India announced its decision to maintain the policy repo rate under at 6.50 per cent. The central bank last adjusted the key rate in February 2023, when it raised the rate by 25 basis points, increasing it from 6.25 per cent to 6.50 per cent.
"The mandate given to RBI is to maintain price stability while supporting growth," he said at the 4th MPC conference of 2024.
This marks the last MPC meeting for the calendar year. Notably, Das will be chairing the final meeting of his term concluding on December 10.
For the uninitiated, the repo rate represents the interest rate at which banks borrow funds from the RBI.
The decision was made unanimously by the Monetary Policy Committee (MPC), comprising RBI Governor Shaktikanta Das, Rajiv Ranjan, Michael Debabrata Patra and the newly appointed members Saugata Bhattacharya, Dr Nagesh Kumar, and Ram Singh. The committee held meetings from the 4th to the 6th of December 2024. The decision to keep the rate unchanged had a 4:2 majority.
The committee unanimously agreed to continue a neutral stance.
Notably, the standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.
Das' projection for GDP for FY 24-25 now stands altered at 6.6 per cent. Meanwhile, he predicts quarterly real GDP growth of Q3 at 6.8 per cent; and Q4 at 7.2 per cent.
Additionally, he projects the real GDP growth for Q1 of 2025-26 at 6.9 per cent and for Q2 2025-26 at 7.3 per cent.
