RBI Keeps Repo Rate Unchanged at 6.5% in First MPC Announcement of FY25 Despite Dissenting Voice

RBI Keeps Repo Rate Unchanged at 6.5% in First MPC Announcement of FY25 Despite Dissenting Voice

New Delhi, 5 April 2024

The Reserve Bank of India (RBI) Governor, Shaktikanta Das, has announced the decision of the Monetary Policy Committee (MPC) following their two-day review meeting. The meeting, which commenced on April 3 and concluded today, April 5, marked the first MPC announcement for the Financial Year 2024-25 (FY25).

In a continuation of its stance, the RBI has opted to keep the repo rate unchanged at 6.5 percent. This decision marks the seventh consecutive time that the RBI has maintained this rate. Despite calls for potential changes, the RBI has opted to uphold the current status quo on policy rates and stances.

The decision to maintain the existing rate was made despite a lack of unanimity among the committee members. Notably, one member recommended a rate cut of 25 basis points during the deliberations.

India