RBI Maintains Repo Rate at 6.5% for 10th Time
Governor Shaktikanta Das Announces Decision
The Reserve Bank of India (RBI) Governor, Shaktikanta Das, announced during the Monetary Policy Committee (MPC) meeting that the policy repo rate will remain unchanged at 6.5% for the tenth consecutive time. This decision was supported by 5 out of 6 MPC members.
Current Rates
| Rate Type | Percentage |
|---|---|
| Standing Deposit Facility (SDF) | 6.25% |
| Marginal Standing Facility (MSF) | 6.75% |
| Bank Rate | 6.75% |
Shift to Neutral Monetary Policy Stance
Governor Das highlighted a shift to a neutral monetary policy stance, focusing on aligning inflation with targets while supporting growth. This approach allows flexibility in responding to inflation and growth needs.
Inflation and Economic Growth
The RBI is managing inflationary pressures, especially in food prices, and global uncertainties. Despite easing CPI inflation to 3.65% in August, food inflation remains high at 5.65%. Rising global crude oil prices add to inflation concerns. The RBI aims to support economic recovery post-pandemic.
Doubts Revealed
RBI -: RBI stands for the Reserve Bank of India. It is the central bank of India, which means it manages the country’s money and financial system.
Governor Shaktikanta Das -: Shaktikanta Das is the person in charge of the Reserve Bank of India. He makes important decisions about India’s money and economy.
Repo Rate -: The repo rate is the interest rate at which the RBI lends money to banks. It helps control inflation and the economy.
Inflation -: Inflation is when the prices of things we buy go up over time. It means you need more money to buy the same things.
Monetary Policy Committee -: The Monetary Policy Committee is a group of people who help decide the interest rates in India. They work with the RBI to keep the economy stable.
CPI Inflation -: CPI stands for Consumer Price Index. CPI inflation measures how much the prices of everyday items like food and clothes are increasing.
Crude Oil Prices -: Crude oil prices refer to the cost of oil before it is made into petrol or diesel. When these prices go up, it can make many things more expensive.
