Wed Oct 09 05:42:19 UTC 2024: ## RBI Holds Repo Rate Steady for 10th Consecutive Time

**Mumbai, October 9, 2024:** In a move that surprised many, the Reserve Bank of India (RBI) has decided to maintain the repo rate at 6.50% for the tenth consecutive time. The Monetary Policy Committee (MPC) of the RBI, led by Governor Shaktikanta Das, announced this decision after a three-day meeting that concluded today.

While several global economies, including the United States, have recently cut interest rates, the MPC maintained a neutral stance, citing the effectiveness of monetary policy in controlling inflation and boosting economic growth.

Governor Das highlighted factors such as improved monsoon conditions and adequate buffer stock as contributing to a projected decline in food inflation in the coming months.

The decision to hold the repo rate steady was made with a 5-1 vote in the MPC. While five members supported maintaining the rate, one member favored a change.

This decision will likely bring relief to home loan and auto loan borrowers, as the unchanged rate means no increase in their monthly installments. However, it might be a disappointment for those anticipating a decrease in interest rates.

The RBI MPC meeting occurs every two months to discuss key economic indicators, inflation rates, and potential adjustments to monetary policy.

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