The six-member Monetary Policy Committee voted 4:2 to maintain the repo rate at its current level, RBI Governor Shaktikanta Das declared.
Citing excessive inflation, the Reserve Bank of India (RBI) decreased the growth objective for the current fiscal year and maintained its benchmark lending rate at its present level for the eleventh consecutive time.
RBI Governor Shaktikanta Das declared this morning that the six-member Monetary Policy Committee had voted 4:2 to maintain the repo rate at 6.5%. Interest rates on loans are likely to stay the same if the repo rate stays the same.
Investors who were hoping for a rate cut following a significant slowdown in the July-September quarter were disappointed by this. Following six consecutive rate hikes of 250 basis points from May 2022, the RBI suspended the rate increase cycle in April 2023.
The growth target for this fiscal year was reduced from 7.3% in the July-September quarter to 6.6% by the MPC, which meets every two months. The Q2 increase was 5.4%, which was less than what was anticipated.
