RBI Keeps Repo Rate Unchanged at 6.50%, Shifts Stance to Neutral Amid Inflation Concerns



Quick Summary
The Reserve Bank of India's Monetary Policy Committee has decided to maintain the policy repo rate at 6.50%, with other rates also remaining unchanged. The committee has shifted its monetary policy stance to 'neutral', signalling a clear focus on achieving the inflation target while continuing to support economic growth. This decision comes amidst a resilient domestic economy and projections of steady GDP growth, though concerns about inflation persist due to global factors and potential weather events.

Monetary Policy Decisions After assessing the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (October 9, 2024) decided to: Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent. Consequently, the standing deposit facility (SDF) rate remains unchanged 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 to change the mo
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FAQ :

The Monetary Policy Committee decided to keep the policy repo rate unchanged at 6.50 per cent.

The monetary policy stance has been changed to 'neutral'.

The focus is on achieving a durable alignment of inflation with the target, while simultaneously supporting economic growth.

Real GDP growth for 2024-25 is projected at 7.2 per cent.

CPI inflation for 2024-25 is projected at 4.5 per cent.

The minutes of the MPC's meeting will be published on October 23, 2024.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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