Monetary Policy: RBI Keeps Key Lending Rate Unchanged At 6.5 Per Cent For Seventh Consecutive Time

In a widely anticipated move, the Reserve Bank of India (RBI) has opted to maintain its key lending rate, known as the repo rate, at 6.5 per cent.

The decision marks the seventh consecutive instance of the central bank keeping the policy rates steady.

RBI MPC has also projected real GDP growth for FY25 at 7 per cent with risks equally balanced across quarters, governor Shaktikanta Das announced.

Additionally, the MPC, with a 5:1 majority, resolved to maintain its focus on the "withdrawal of accommodation."

Alongside the repo rate, the Marginal Standing Facility (MSF) and Standing Deposit Facility (SDF) rates also remained unchanged at 6.75 per cent and 6.25 per cent respectively.

The RBI's decision comes amidst expectations from market analysts and economists, who foresaw the central bank maintaining status quo on interest rates.

Also, the RBI Governor mentioned that, "Inflation is moving closer to targets but the last mile is turning out to be challenging".

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