The Reserve Bank of India (RBI) kept its key interest rates unchanged on Friday but cut the cash reserve ratio by 50 basis points to bring enough liquidity in the banking system.
"As a result, the Standing Deposit Facility (SDF) rate remains at 6.25 per cent, and the Marginal Standing Facility (MSF) rate, along with the Bank Rate, stays at 6.75 per cent," Das added.
The Reserve Bank of India (RBI) is expected to maintain its policy rate during its upcoming meeting next week, as GDP growth slowed significantly in the second quarter of FY25. However, the likelihood of a rate cut in February has increased, according to a report by HDFC Bank.
Reserve Bank of India's (RBI) decision to keep the repo rate unchanged and change the policy stance to neutral indicates that inflation is still the main concern for the central bank, according to a research report by Union Bank of India.
The decision was made with a majority vote of 5 out of 6 MPC members. The standing deposit facility (SDF) rate remains steady at 6.25 per cent, while the marginal standing facility (MSF) rate and the bank rate are both maintained at 6.75 per cent.
Economists and Industry bodies have welcomed RBI's move to keep the policy repo rate unchanged they said that maintaining the repo rate provides stability and predictability in the financial markets.
Governor Das stated, "After a detailed assessment of the evolving macroeconomic and financial conditions and the overall outlook. It decided by a majority of four members to keep the policy repo rate unchanged at 6.5 per cent."
Delhi-NCR [India], June 10: For the eighth consecutive time, the RBI has decided to keep the repo rate unchanged at 6.5%. This decision, combined with optimistic GDP growth projections, massive infrastructural development, an increased pace of project launches, and robust demand, is expected
The Reserve Bank of India's (RBI) decision to keep the repo rate unchanged again is a boon for the Indian real estate sector, said real estate consultancy firm Anarock.
The RBI's Monetary Policy Committee (MPC) maintained the status quo on the Repo Rate, keeping it unchanged at 6.5 per cent. The decision comes amidst a backdrop of economic uncertainties both domestically and globally.
Along anticipated lines, RBI kept the policy repo rate unchanged at 6.50 per cent, the seventh time in a row. The repo rate is the rate of interest at which the RBI lends to other banks.