New Delhi — The Reserve Bank of India (RBI) has decided to keep its key lending rate steady at 6.5%, marking the tenth consecutive meeting without a rate change. Governor Shaktikanta Das announced the decision today following the outcome of the RBI’s three-day monetary policy committee (MPC) meeting that commenced on October 7.
The six-member MPC, chaired by Governor Das, unanimously voted to maintain the repo rate at 6.5%. This decision reflects the RBI’s ongoing strategy to balance inflation control with fostering economic growth. The last adjustment to the repo rate was made in February 2023, underscoring the bank’s cautious approach amidst varying economic indicators.
In a significant development, the MPC welcomed three new external members, replacing the outgoing officials. The newly inducted members are Professor Ram Singh, Director of the Delhi School of Economics at the University of Delhi; economist Saugata Bhattacharya; and Dr. Nagesh Kumar, Director and Chief Executive of the Institute for Studies in Industrial Development. They succeeded Ashima Goyal, emeritus professor at the Indira Gandhi Institute of Development Research; Shashanka Bhide, honorary senior advisor at the National Council of Applied Economic Research; and Jayanth R. Varma, professor at the Indian Institute of Management Ahmedabad (IIM-A).
The committee’s 5:1 vote to maintain the current repo rate indicates a strong consensus on the existing monetary policy stance. The RBI continues to monitor economic conditions closely, aiming to navigate the complexities of inflationary pressures and growth dynamics effectively.
As the RBI upholds its current rate, stakeholders across various sectors will be observing closely to gauge the implications for borrowing costs, investment, and overall economic momentum in the coming months.
