RBI Keeps Repo Rate Unchanged at 6.5%, Projects FY25 GDP at 7.2%
The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 6.5% in its Monetary Policy Meeting, marking the 10th consecutive time. RBI Governor Shaktikanta Das stated that five out of the six members of the Monetary Policy Committee (MPC) voted in favor of maintaining the policy repo rate.
“After evaluating the macroeconomic conditions and future outlook, the Monetary Policy Committee decided, with five members in agreement, to maintain the policy rate at 6.5%,” said Shaktikanta Das. This marks the tenth consecutive meeting in which the central bank’s six-member MPC has opted to keep the key policy rates unchanged.
The standing deposit facility (SDF) rate remains at 6.25%, while the marginal standing facility (MSF) and the bank rate are unchanged at 6.75%. The central bank has projected real GDP growth for FY25 at 7.2%, while the inflation forecast for the financial year is estimated at 4.5%. He noted that real GDP grew by 6.7% in Q1.
Dharmendra Raichura, VP & Head of Finance at Ashar Group, stated that this stable approach promotes overall stability, supporting economic momentum while keeping inflation in check. “The RBI has maintained its inflation forecast at 4.5% for FY2025, reflecting cautious optimism, alongside a solid GDP growth projection of 7.2%. Further liquidity measures are in place to uphold financial stability in the market,” he added.
Consumer Price Index (CPI) inflation is projected at 4.1% for the second quarter of the current fiscal year. It is expected to rise to 4.8% in the third quarter before easing to 4.2% in the fourth quarter. Looking ahead, CPI inflation for the first quarter of FY26 is projected at 4.3%.
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