RBI Maintains Status Quo For The 7th Time; Repo Rates Unchanged At 6.5%

New Delhi: The Reserve Bank of India (RBI) announced the outcome of the Monetary Policy Committee (MPC) decision on Thursday, maintaining status quo for the 7th time in a row. The central bank has decided to keep the repo rates unchanged at 6.5 percent. 

The three-day MPC meeting Chaired by RBI Governor Shaktikanta Das, commenced on October 3 and concluded today.  Announcing the MPC's decision Das said that the committee has unanimously decided to keep the repo rate at 6.5 percent. Consequently, the reverse repo rate stands at 3.5 percent, the standing deposit facility (SDF) rate remains unchanged at 6.25 percent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 percent.

Governor Das said that MPC has decided to remain focused on withdrawal of accommodative stance. "The Monetary Policy Committee (MPC) met on 3rd, 4th and 5th April 2024. After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, it decided by a 5 to 1 majority to keep the policy repo rate unchanged at 6.50 per cent. Consequently, the standing deposit facility (SDF) rate remains at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. The MPC also decided by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth," he added.

A year is divided into six bimonthly reviews of the central bank's monetary policy. Additionally, there are out-of-cycle reviews, where the central bank holds extra sessions in urgent situations.