The Reserve Bank of India Holds Repo Rate Steady at 6.5%

The Reserve Bank of India (RBI) has stated its intention to keep the repository rate or the repo rate at 6 percent. 5% for the ninth time and also for the consecutive nine months, as said by the RBI Governor Shaktikanta Das on Thursday the 8th of August, 2024. 

The Reserve Bank of India Holds Repo Rate Steady at 6.5%

 Governor Das said: “By a 4:2 division, the Monetary Policy Committee left the policy repo rate at 6. 5%. Therefore, the standing deposit facility (SDF) rate is 6. 25, and the marginal standing facility (MSF) rate along with the bank rate is 6. 75%. 

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 The Reserve Bank Of India has also unchanged CPI inflation for the FY 2024-25 at 4. 5%. 

 Whereas the headline inflation was up in June mainly on account of an increase in food prices, Das added that the base effect will work towards pulling down the headline inflation in Q3. He further pointed out that although food inflation probably continued to be elevated in July, he expects some alleviation due to improvement in the southwest monsoon.

Here are some additional points to watch today:Here are some additional points to watch today:

– One, when observing the RBI’s estimated trend of the GDP growth of India, two, MPC’s inflation forecast.
– Retail inflation went up to 5. Point to consider is that consumer price index rose by 08% year-on-year in June mainly because of raise of food prices.
– For CPI based inflation it has been below 5 percent since March this year and below 6 percent since september last year.
– Inflation based on the Consumer Price Index has been within the RBI’s 2-6 per cent band for the last ten months. 

Report By: Sonali Sarkar 

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