Repo rate is the rate at which the central bank lends money to commercial banks in the event of a shortfall of funds.
This is the eighth time in a row the bank's Monetary Policy Committee (MPC) has decided to keep the key rates unchanged.
"On the basis of an assessment of the current and evolving macroeconomic situation, the MPC at its meeting today decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 percent," read a statement issued by the RBI.
"Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25 percent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 percent. The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth," it said.
Meanwhile, the real GDP growth for 2024-25 is projected to be 7.2 percent with the first quarter (Q1) at 7.3 percent, Q2 at 7.2 percent, Q3 at 7.3 percent, and Q4 at 7.2 percent.
The retail inflation rate is projected to be 4.5 percent for 2024-25 with Q1 at 4.9 percent, Q2 at 3.8 percent, Q3 at 4.6 percent, and Q4 at 4.5 percent.
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