The Reserve Bank of India (RBI) Governor, Shaktikanta Das, announced on Thursday that the central bank’s Monetary Policy Committee (MPC) has chosen to maintain the key repo rate at 6.5 percent. This decision was widely anticipated by economists and marks the sixth consecutive time the MPC has decided to keep interest rates unchanged.
In a statement, Governor Das explained that the decision to hold the repo rate steady was made after a thorough evaluation of the current macroeconomic and financial conditions, as well as the future outlook. The MPC, comprised of six members, voted by a majority of 5 to 1 in favor of maintaining the policy rate at 6.5 percent.
Governor Das further disclosed that the standing deposit facility (SDF) rate remains at 6.25 percent, while the marginal standing facility (MSF) rate and the bank rate stand at 6.75 percent. These rates are crucial indicators of the monetary policy stance and influence borrowing and lending activities within the economy.
The MPC’s decision reflects its commitment to a balanced approach aimed at managing inflationary pressures while supporting economic growth. Governor Das emphasized the MPC’s dedication to gradually withdrawing monetary accommodation to ensure that inflation aligns with the targeted levels set by the central bank, while also fostering an environment conducive to sustained economic expansion.
The RBI’s decision to maintain the status quo on interest rates comes amidst ongoing efforts to navigate the economic recovery from the impacts of the COVID-19 pandemic. It underscores the central bank’s cautious approach to monetary policy amid lingering uncertainties surrounding global economic conditions and domestic inflationary trends.
Market analysts and stakeholders will closely monitor future MPC meetings and policy announcements for further insights into the RBI’s strategy in managing inflation and supporting growth. The central bank’s actions will continue to play a pivotal role in shaping the trajectory of Bharat’s economic recovery in the coming months.
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