RBI keeps repo rate unchanged for 11th time in a row at 6.5 per cent

Amid high inflation and weak GDP growth numbers, the Reserve Bank on Friday kept repo rate unchanged at 6.5 per cent with a majority decision of 4:2. Das announced, "The Monetary Policy Committee decided by a majority of 4:2 to keep the policy repo rate unchanged at 6.5%.... The Standing Deposit Facility (SDF) rate remains at 6.25% and the Marginal Standing Facility (MSF) rate and the Bank Rate at 6.75%..."

Adding that the RBI will continue with 'neutral' monetary policy stance, Das said, "Monetary policy has a wide-ranging impact, price stability is important for every segment of society. The last mile of inflation is turning out to be prolonged and arduous." The RBI has also raised the retail inflation forecast to 4.8 pc for FY'25, from 4.5 pc earlier. Near-term inflation growth outlook has somewhat turned adverse since last monetary policy in October.

Governor also said, "Gains achieved so far in broad direction of disinflation, notwithstanding recent uptick, need to be preserved."

Reserve Bank Governor Shaktikanta Das headed six-member Monetary Policy Committee (MPC) started its meeting to decide on the next set of bi-monthly monetary policy on Wednesday.

"Coming up: Monetary Policy Statement by #RBI Governor @DasShaktikanta on December 06, 2024, at 10:00 am," the Reserve Bank announced on social media platform 'X'.

Das is chairing the last MPC meeting of his current term which ends on December 10. The Reserve Bank has kept the repo or short-term lending rate unchanged at 6.5 per cent since February 2023.

India's economic growth slowed to near two-year low of 5.4 per cent in the July-September quarter of this fiscal due to poor performance of manufacturing and mining sectors. The gross domestic product (GDP) had expanded by 8.1 per cent in the July-September quarter of 2023-24 fiscal.