“The monetary policy committee decided by a 4:2 majority to keep the policy repo rate unchanged at 6.5%. Consequently, the standing deposit facility (SDF) rate remains at 6.25%, and the marginal standing facility (MSF) rate and the bank rate at 6.75%,” RBI governor Shaktikanta Das said in a presser on Thursday.
This is the ninth time in a row that the MPC has kept repo rate unchanged at 6.5%.
The MPC decided to maintain its stance of ‘withdrawal of accommodation’ in order to concentrate on guiding inflation towards the desired target. This decision was supported by a majority vote, with four out of the six members backing the stance.
The MPC has maintained the repo rate at 6.5 percent since February 2023.
The MPC’s primary responsibility is to set the policy repo rate to achieve the inflation target of 4 percent while considering the objective of economic growth.
The current MPC is set to undergo significant changes this year.
The terms of the three external members will conclude on October 6 and cannot be renewed.
The six-member monetary policy committee (MPC), which includes three central bank officials and three external members, is recast every four years when the government appoints a new set of external members.
The other three members of the MPC include RBI governor Shaktikanta Das, whose current term ends in early December, deputy governor Michael Patra, whose contract runs until early January, and executive director Rajiv Ranjan.
The external members of the rate-setting panel are Shashanka Bhide, Ashima Goyal, and Jayanth R Varma.
(With inputs from agencies)
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