The Reserve Bank of India (RBI) governor Shaktikanta Das announced the Monetary Policy Committee's (MPC) decision on key interest rates today. The central bank has kept the repo rate unchanged which is 6.5 per cent. The central bank has kept the repo rate unchanged for the last six consecutive MPC meetings.
Repo rate is the rate at which the central bank lends short-term funds to banks. It currently stands at 6.5 per cent and has been unchanged since April 2023. The State Bank of India, in its research report, stated that rate cuts are not likely in the MPC as “strong evidence of emerging economy central bank rate actions are predicated by advanced economy central bank rate actions. India is an exception and the first RBI cut could be in Q3FY25."