Reserve Bank of India (RBI) kept the Repo rate unchanged for the 11th consecutive time. Earlier, RBI changed the repo rate in February 2023 to 6.5% which remains constant even after today’s meeting.
Shaktikanta Das, RBI Governor said, that the Monetary Policy Committee (MPC) of RBI decided not to change the rate.
He further said, “Monetary policy has a wide-ranging impact, price stability is important for every segment of the society.” The stagnant repo rate continues after a six continuous hike of 250 basic points after May 2022.
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Other than RBI repo rate news, another decision of the MPC creates a weave of happiness. The Monetary Policy Committee holds the Standing Deposit Facility rate at 6.25%. Parallel to this, Marginal Standing Facility (MSF) and Bank rate remain stagnant at 6.75%.
RBI aims for India’s Gross Domestic product (GDP) growth for the present fiscal at 6.6%, which is down from earlier expectations of 7.2 percent. Briefing media about why RBI kept Repo Rate unchanged Das said, “Growth in real GDP in the second quarter of this year at 5.4% turned out to be much lower than anticipated. This decline was led by a substantial deceleration in industrial growth from 7.4% in the first quarter to 2.1% in the second quarter due to the subduded performance of manufacturing companies, contraction in mining activity and lower electricity demand.”
