back to top
BusinessRBI retains repo rate at 6.5%, maintains accommodative monetary stance

RBI retains repo rate at 6.5%, maintains accommodative monetary stance

Date:

In a move closely watched by businesses and households across , the Reserve Bank of India (RBI) has decided to retain the repo rate at 6.5% after its latest bi-monthly policy review meeting. The central bank's Monetary Policy Committee (MPC), headed by Governor Shaktikanta Das, voted unanimously to keep rates on hold for a seventh consecutive time, maintaining an accommodative stance as inflation remains within the target range.

Inflation forecasts were also updated, with retail inflation seen moderately higher at 4.9% in the first quarter of the current financial year but trending down thereafter. GDP growth for 2024-25 was projected at a robust 7%, signaling confidence in India's economic fundamentals despite global headwinds. The announcement comes as welcome news for borrowers as stable interest rates help sustain demand while offering much needed stability during uncertain times.

In his post-meeting address, Governor Das emphasized that liquidity conditions would continue to remain comfortable. This dovetails with the RBI's ongoing efforts to balance growth and inflationary pressures, ensuring adequate credit flow even as it safeguards purchasing power. Key sectors like housing were highlighted, with stable rates supporting affordability as well as the overall real estate sector through higher consumer spending.

By keeping rates steady despite mounting cost-push pressures, the central bank has reiterated its focus on a gradual, calibrated policy normalization. The move signals consistency for markets while prioritizing medium-term goals over transient factors. In line with itsflexible approach, the MPC is expected to closely monitor incoming data and global spillovers to calibrate its actions appropriately.

Northlines
Northlines
The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

Share post:

Popular

More like this
Related

Influential Business Leader Vineet Nayyar Passes Away at 85

The business world mourns the loss of an iconic...

MSMEs in Tamil Nadu Cite Problems with Goods and Services Tax Registration Procedures

The Federation of Indian Micro and Small & Medium...

Indian exporters wary of potential Chinese dumping of goods in India after latest US-China tariff war escalation

Indian exporters wary of potential Chinese dumping after latest...

Indian air passenger traffic forecast to hit new record in 2025 as recovery outpaces global levels

The country's air passenger numbers are forecast to reach...