The RBI’s monetary policy committee on Friday decided to keep the repo rate unchanged at 6.5 per cent, unanimously. This is the fifth time in a row that the central bank has paused the key interest rates. The RBI has raised the FY24 GDP projection to 7 per cent, from 6.5 per cent earlier. It has kept inflation projection unchanged at 5.4 per cent for 2023-24.
With five out of six members voting in favour, the RBI MPC remains focussed on the “withdrawal of accommodation”.
Presenting the fifth bi-monthly monetary policy of FY24, RBI Governor Shaktikanta Das on Friday said, “2023 will go down as a year of great volatility. The long-awaited normalcy still eludes the global economy. The global economy is showing signs of slowdown though unevenly across geographies. Headline inflation has receded from its peak levels.”
He said the Indian economy shows resilience and momentum, amid global slowdown.
The RBI MPC on Friday also kept the SDF unchanged at 6.25 per cent, and MSF and Bank Rates maintained at 6.75 per cent. The SDF is the lower band of the interest rate corridor, while the MSF is the upper band.
With the status quo, home loan interests are likely to remain unchanged, bringing slight relief for those paying home loan EMIs.