Wed Oct 09 04:41:31 UTC 2024: ## RBI Holds Repo Rate Steady for 10th Consecutive Time, Keeping Hopes of EMI Relief in Abeyance

**Mumbai, India:** The Reserve Bank of India (RBI) has kept the repo rate unchanged for the tenth consecutive time, dashing hopes of lower interest rates and EMI relief for borrowers. The decision was announced on Wednesday, October 9th, after the Monetary Policy Committee (MPC) completed its three-day review meeting.

While global markets anticipate rate cuts, the RBI cited concerns over inflation and the need to maintain economic growth as factors in its decision. The MPC, which now includes three newly appointed external members, also refrained from changing its policy stance, which remains focused on ensuring inflation stays within the target of 4% (plus or minus 2%).

Despite the US Federal Reserve’s recent half-percentage point rate cut, the RBI remained cautious, emphasizing that it would consider various economic indicators, including inflation and GDP growth, before making any changes to the repo rate. The current repo rate stands at 6.5%, a level unchanged since February 2023.

Experts and market participants are expecting a potential repo rate cut in December. While the RBI did not offer a clear timeline, it hinted at a possible easing in the coming months. However, the decision to hold rates steady comes as a disappointment for consumers and borrowers, who were hoping for some respite from the impact of high interest rates.

The RBI’s decision will likely impact the stock market, with analysts predicting a possible dip in the indices. The banking and finance sectors are expected to face a negative impact, with investors anticipating a delay in further growth.

The MPC’s decision to maintain the status quo reflects a cautious approach by the RBI, balancing the need to manage inflation with ensuring continued economic growth. While hopes for immediate EMI relief have been dashed, the possibility of a rate cut in the near future remains a possibility.

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