Wed Oct 09 06:50:35 UTC 2024: ## RBI Holds Interest Rates Steady, Signals Potential Easing in Future
**Mumbai, India:** The Reserve Bank of India (RBI) has maintained interest rates for the tenth consecutive time, keeping the repo rate at 6.50% and the reverse repo rate at 3.35%. The decision was taken by the Monetary Policy Committee (MPC) in its 51st meeting.
While holding rates steady for now, the MPC has shifted the policy stance from “Withdrawal of Accommodation” to “Neutral,” indicating a potential for interest rate cuts in future meetings.
**Economic Outlook:**
The RBI revised its GDP forecast for FY25 to 7% from the earlier projection of 7.2%. The central bank also revised its GDP growth estimates for the following quarters, with Q3 set at 7.4%, Q4 at 7.4%, and Q1 FY26 at 7.3%.
**Inflation Concerns:**
The MPC kept the inflation forecast for FY25 at 4.5%. However, the RBI noted that risks to inflation remain elevated due to potential food price pressures, global economic uncertainties, and adverse weather conditions.
**RBI Governor Shaktikanta Das emphasized the need for continued vigilance to ensure price stability and sustainable growth.**
This decision by the RBI is likely to have significant implications for the Indian economy. The continued rate pause may help support growth, while the shift in stance to “Neutral” suggests a willingness to adjust rates in the future based on economic conditions.
First Piper 