The Reserve Bank of India (RBI) has decided to maintain the benchmark interest rate at 6.5% for the ninth consecutive time. RBI Governor Shaktikanta Das announced that the repo rate remains unchanged at 6.50%.
RBI Governor Shaktikanta Das says “…The Monetary Policy Committee decided by a 4:2 majority to keep the policy repo rate unchanged at 6.5%. Consequently, the standing deposit facility (SDF) rate remains at 6.25%, and the marginal standing facility (MSF) rate and the bank rate at 6.75%…”
#WATCH | RBI Governor Shaktikanta Das says “…The Monetary Policy Committee decided by a 4:2 majority to keep the policy repo rate unchanged at 6.5%. Consequently, the standing deposit facility (SDF) rate remains at 6.25%, and the marginal standing facility (MSF) rate and the… pic.twitter.com/2bNLZVr03S
— ANI (@ANI) August 8, 2024
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Repo Rate changes between 2022 and 2023
Between May 2022 and February 2023, the RBI increased the repo rate six times consecutively. The rate was raised from 4% in May 2022 to the current level of 6.5%, with the most recent increase occurring in February 2023, when it was adjusted from 6.25% to 6.5%. Prior to this, the RBI had opted to keep interest rates steady during the Monetary Policy Committee meetings in April, June, and August.
What is the Repo Rate?
The repo rate is the interest rate at which a central bank, such as the RBI in India, lends money to commercial banks. This rate is a key tool used to manage the money supply in the economy and control inflation.
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