Wed Oct 09 04:09:36 UTC 2024: ## RBI MPC Holds Repo Rate Steady at 6.5% for the Tenth Consecutive Time
**Mumbai, India -** The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has maintained the benchmark repo rate at 6.5% for the tenth consecutive meeting. This decision comes as the MPC seeks to balance inflation concerns with the need for economic growth.
The MPC’s stance is expected to shift towards a neutral monetary policy, with experts suggesting that the current adjustment might be the final one.
“Headline inflation has been below 4% for some time now,” said Sakshi Gupta, Chief Economist at HDFC Bank. “However, there are concerns about the gradual pace of headline CPI inflation, but the year-on-year headline inflation numbers will remain below 4% due to base effects.”
Despite the decision to hold the repo rate steady, some experts argue that the RBI’s focus on maintaining higher rates is detrimental to economic growth. In the last two MPC meetings, external members Ashima Goyal and Jayant Varma had advocated for rate cuts.
This MPC meeting marks the first since the appointment of three new external members by the government. The decision on the policy rates will be announced by RBI Governor Shaktikanta Das at 10:00 am today.
While a rate cut might not happen this time, borrowers will likely have to wait until December for a reduction in loan EMIs.
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