Wed Oct 09 05:49:43 UTC 2024: ## RBI Holds Key Interest Rates Steady for 10th Consecutive Time
**Mumbai:** The Reserve Bank of India (RBI) has kept key interest rates unchanged, in line with analysts’ expectations. Governor Shaktikanta Das announced the decision on Wednesday, concluding a three-day Monetary Policy Committee (MPC) meeting that began on Monday.
The repo rate, the benchmark lending rate, remains at 6.5%, marking the 10th consecutive time the RBI has held the rate steady since February 2023. While the current stance suggests a possible rate cut in the December meeting, the MPC voted to keep rates unchanged this time around.
Governor Das emphasized the need to balance inflation and growth, citing the slow and uneven decline in inflation and improved government spending. He predicted that the growth rate would be 7.2% in the first quarter of FY25, followed by 7% in the second, 7.4% in the third, and 7.4% in the fourth. The projected growth rate for the first quarter of FY26 is 7.3%.
Addressing inflation concerns, Das said it is expected to moderate to 4.8% in the third quarter, considering both domestic and international developments. He further projected a decline to 4.2% in the fourth quarter.
The RBI’s decisions align with a poll conducted by Good Returns, which predicted the unchanged rates. The MPC’s decision to hold rates steady underscores the ongoing challenges posed by inflation and the delicate balance between fostering growth and maintaining price stability.
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