BUSINESS

RBI keeps repo rate unchanged at 6.5%

By Rishabh Raj

1

Repo rate unchanged

The Reserve Bank of India's Monetary Policy Committee unanimously decided to maintain the repo rate at 6.5%. 

2

Loan rates stable

The repo rate is the rate of interest at which RBI lends to other banks. With repo rate unchanged, loan interest rates may remain unchanged too. 

3

GDP growth forecast FY24

The GDP growth projection for the current fiscal year has been raised to 7% (from previous 6.5%), with 6.5% and 6% for the third and fourth quarters, respectively. 

4

GDP growth forecast FY25

In the first three quarters of FY25, the GDP is expected to grow by 6.7%, 6.5%, and 6.4%, respectively. 

5

Policy stance maintained

The RBI also maintained its policy stance of "withdrawal of accommodation" to ensure inflation progressively aligns with the committee's target while remaining supportive of economic growth. 

6

Inflation forecast maintained

Despite concerns about food price hikes and crude oil price fluctuations, the RBI maintained its inflation forecast of 5.4% for this fiscal year. 

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