RBI keeps repo rate intact at 6.5%
The Reserve Bank of India (RBI) has maintained interest rates at 6.5%. The central bank has not changed the rates for the 11th consecutive time. The last time the interest rate was raised was in February 2023 by 0.25% to 6.5%.
Reserve Bank Governor Shaktikanta Das on Friday informed about the decisions taken in the Monetary Policy Committee (MPC) meeting. This meeting is held every two months. RBI has also expressed apprehension of rising inflation, which may have a negative impact on economic growth. That is why the GDP growth estimate has been reduced from 7.2% to 6.6% in the next financial year.
RBI increased interest rates by 1.10% in 5 times since 2020
The Reserve Bank of India (RBI) cut interest rates by 0.40% twice during Covid period (27 March 2020 to 9 October 2020). After this, in the next 10 meetings, the Central Bank increased interest rates 5 times, did not make any change four times and once cut it by 0.50% in August 2022. Before Covid, the repo rate was at 5.15% on 6 February 2020.
4 out of 6 members of the committee not in favor of changing interest rates
MPC has 6 members, of which 3 are RBI officials and the remaining 3 are nominated members by the government. RBI Governor Shaktikanta Das, Deputy Governor Michael Patra and Executive Director Rajiv Ranjan are already included. At the same time, the government has appointed Ram Singh, Saugata Bhattacharya and Nagesh Kumar as external members in the committee on October 1.
The RBI Governor said that 4 out of 6 members of the Monetary Policy Committee were not in favor of changing the interest rates. Due to no change, the Standing Deposit Facility i.e. SDF rate remains at 6.25% and the Marginal Standing Facility i.e. MSF rate and the bank rate remain at 6.75%.
