Wed Oct 09 06:02:19 UTC 2024: ## RBI Holds Interest Rates Steady, Maintaining Repo Rate at 6.5%
**Mumbai, October 10, 2024:** The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) has decided to maintain the policy repo rate at 6.5% after its three-day meeting concluded on Thursday. This marks the 10th consecutive time the benchmark interest rate has remained unchanged.
RBI Governor Shaktikanta Das announced the decision, stating that the MPC unanimously agreed to maintain the stance at “neutral.” The decision means no immediate change in home loan EMIs for borrowers.
The central bank has also kept its GDP growth forecast for the current fiscal year at 7.2%. “Despite global challenges, the domestic economic fundamentals remain strong,” said Das, adding that the growth forecast is maintained on the basis of the current circumstances.
The RBI projects retail inflation to be around 4.5% for FY 2025, citing a good monsoon and sufficient buffer stock as factors that will bring down food inflation by the end of the year. However, Das cautioned that retail inflation could witness a sharp jump in September due to unfavorable base effects and rising food prices.
The MPC’s decision to maintain the status quo on interest rates was made by a 5:1 majority vote.
The RBI governor also reiterated Mahatma Gandhi’s famous quote, “When the method is good, success is bound to come in the end.”
The RBI has been closely monitoring the health of Indian banks, which the Governor described as strong. However, he also issued a warning to banks about growing consumer loans and credit card debt.
This latest decision by the MPC has been closely watched by the market as the central bank continues to navigate the global economic landscape and manage inflation expectations.
First Piper 