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RBI Maintains Repo Rate at 6.5% for Fourth Consecutive Time

Oct 6, 2023

By: BlinkX Research Team

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has announced its decision to keep the repo rate unchanged at 6.5 percent. This marks the fourth consecutive time the central bank has opted to maintain the basic rate at its current level. Governor Shaktikanta Das confirmed that the MPC reached a unanimous decision regarding the repo rate.

The Standing Deposit Facility and Marginal Standing Facility rates have also been retained at 6.25 percent and 6.75 percent, respectively. Additionally, by a majority vote of 5-1, the MPC has affirmed its commitment to the gradual withdrawal of accommodation.

This move follows the rate hike implemented in February 2023, which saw a 25 basis point increase in the repo rate. Since May 2022, the RBI had progressively raised the repo rate by 250 basis points as part of measures to address inflationary pressures.

The RBI's decision reflects its cautious approach towards monetary policy, aiming to balance economic growth with inflationary concerns.