Chennai: In a move that echoes the predictions of seasoned economists, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has opted to maintain the repo rate at 6.50 per cent.
The repo rate, which signifies the rate at which the RBI lends to commercial banks, remains unchanged following the MPC’s deliberations held from April 3 to April 5.
RBI Governor Shaktikanta Das, in a statement on Friday, confirmed the decision of the majority of the MPC members to retain the repo rate at its existing level of 6.50 per cent.
Subsequently, the Standing Deposit Rate (SDF) has been set at 6.25 per cent, while both the Marginal Standing Facility and the Bank Rate stand at 6.75 per cent, as announced by Governor Das.
The MPC’s decision to maintain the repo rate underscores the central bank’s cautious approach towards monetary policy amidst evolving economic conditions and global uncertainties.
The RBI’s stance on interest rates is closely watched by market participants, policymakers, and businesses as it influences borrowing costs, investment decisions, and overall economic activity in the country.
The decision to maintain the repo rate comes amid a backdrop of various domestic and international factors impacting India’s economic outlook, including inflationary pressures, fiscal policies, and geopolitical developments.