On August 8, the Reserve Bank of India (RBI) maintained the repo rate at 6.5% for the ninth consecutive time, a move intended to stabilize the economy and manage inflation while fostering economic growth. This decision means that loan equated monthly installments (EMIs) will not be affected in the immediate term.
RBI Governor Shaktikanta Das announced that the Monetary Policy Committee (MPC) reached a 4:2 majority decision to keep the repo rate unchanged. As a result, the standing deposit facility (SDF) rate remains at 6.25%, and both the marginal standing facility (MSF) rate and the bank rate are set at 6.75%. Governor Das emphasized that the focus is on achieving inflation targets while continuing to support economic growth.
The MPC, which includes three central bank officials and three external members, will undergo significant changes soon. The terms of the three external members will end on October 6, with new appointments to follow. The current committee includes RBI Governor Shaktikanta Das, whose term concludes in early December, Deputy Governor Michael Patra, and Executive Director Rajiv Ranjan, alongside external members Shashanka Bhide, Ashima Goyal, and Jayanth R Varma.
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