RBI Maintains Status Quo with Unchanged Repo Rate Amidst Declining Inflation

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has decided to maintain the policy repo rate at 6.5 percent, keeping it unchanged for the fifth consecutive time. The decision comes in the wake of declining inflation, with the October consumer price index (CPI) reaching a four-month low of 4.87 percent, down from 5.02 percent in the previous month. RBI Governor Shaktikanta Das highlighted the unanimous decision, citing the need to focus on the withdrawal of accommodation to ensure progressive alignment of inflation with the target while still supporting economic growth. The MPC’s stance reflects confidence in the economy’s resilience, as India’s GDP grew at a robust rate of 7.6 percent during the July-September quarter of the financial year 2023-24, making it the fastest-growing major economy.

Das also emphasized the importance of balancing growth and inflation, and the MPC’s commitment to supporting economic recovery while maintaining price stability. The decision underscores the central bank’s cautious approach in navigating the economic landscape and its commitment to fostering sustainable and balanced growth amid global uncertainties.