Repo rate: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has decided to keep the repo rate stable at 6.5% after a three-day meeting. Giving information about this decision, RBI Governor Shaktikanta Das said that this decision has been taken with a majority of 4:2. The governor said that the priority of RBI is to control inflation, so that the general public can get relief.
Along with the repo rate, other key rates have also been kept unchanged. Standing Deposit Facility (SDF) rate remains at 6.25% and Marginal Standing Facility (MSF) rate remains at 6.75%. The central bank has kept its policy stance “neutral”, which was unanimously approved by all the members. RBI said that this balanced stance has been adopted keeping in mind the current economic conditions.
Governor Shaktikanta Das in his statement described inflation control as the top priority. He said that RBI will take all necessary steps to keep the inflation rate under control. Along with this, stability in interest rates will maintain stability in the loan and deposit market. This step can prove beneficial for the general public and investors.
Talking about the GDP growth rate, the Governor said that the growth rate in the July-September quarter was 5.4%, which was lower than expectations. However, he expressed confidence that the signs of economic slowdown in the second quarter have now weakened. RBI expressed hope that economic activities will improve in the coming months, which will accelerate economic growth.
This decision of RBI reflects an attempt to maintain a balance between economic stability and inflation control. Keeping the repo rate stable will give confidence to investors, while consumers will get relief from inflation. In the coming times, these decisions of RBI can play an important role in economic reform.
