RBI keeps repo rate unchanged

The Reserve Bank of India’s (RBI) monetary policy committee (MPC) has kept the repo rate unchanged at 6.5 per cent for the fifth policy meeting in a row. Consequently, the standing deposit facility (SDF) rate remains at 6.25 per cent and the marginal standing facility (MSF) rate and the bank rate at 6.75 per cent.
It has also maintained its ‘withdrawal of accommodation’ policy stance by a five-out-of-six majority. This decision comes due to the inflationary pressures moderating closer to the RBI’s target range of 2-6 per cent and a robust economic expansion in the first half of 2023-24.