The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) announced on December 6 that the repo rate would remain unchanged at 6.5%, marking the 11th consecutive decision to maintain the rate.
Key Highlights
- The MPC also maintained its ‘Neutral’ stance, allowing flexibility to adapt to evolving economic conditions.
- The decision was passed by a majority of 4:2 within the six-member committee.
- Other rates, such as the Standing Deposit Facility (SDF), remain at 6.25%, and the Marginal Standing Facility (MSF) and Bank Rate continue at 6.75%.
Economic Context
This was pretty much expected from the latest Moneycontrol survey of 17 economists, bankers, and fund managers. Unchanged rates are essentially a reflection of the cautiousness that RBI has compelled to wear amid global uncertainties coupled with changing domestic inflation dynamics.
A steady repo rate would mean stability in the cost of borrowing and hence benefiting the individuals and the business people. Home loans, car loans, and all types of credit facilities can thus continue to be at the prevailing rates of interest, therefore giving continuity for the borrowers.
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Source: Moneycontrol
News Desk
