RBI Governor Shaktikanta Das announced the policy rate after the meeting of the Monetary Policy Committee. He said that the repo rate has not been cut, hence the policy interest rates will remain at 6.50 percent.
The Monetary Policy Committee (MPC) led by the Reserve Bank of India (RBI) kept the repo at 6.5%. This is the sixth consecutive time that the central bank has not made any change in interest rates.
The Monetary Policy Committee of RBI meets every two months. Even in the previous December meeting, RBI had not increased or cut the repo rate.
The RBI Governor said that due to the efforts of the government and the Central Bank, the inflation rate has come down. RBI has estimated retail inflation to be 5.4 percent for the current financial year, 4.5 percent for 2024-25.
Due to interest rates remaining stable at the level of 6.50 percent, there will be no change in the interest received on loans and savings schemes from banks.
The Reserve Bank has kept the repo rate stable at 6.5 percent for almost a year. It was last increased from 6.25 percent to 6.5 percent in February 2023.