Why RBI Repo Rate Remains Unchanged at 6.5% ?
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In a recent announcement, the Reserve Bank of India (RBI) Governor Shaktikanta Das announced that RBI has kept the repo rate unchanged at 6.5% in its monetary policy review. Adding more to this, the RBI has revised its inflation projection for the fiscal year 2023-24, indicating a positive outlook for the Indian economy. These decisions highlight the central bank's cautious approach to balancing economic growth and price stability amid global uncertainties and domestic challenges. Let's delve deeper into the implications of these developments. The RBI's decision to keep the repo rate steady at 6.5% signals its commitment to supporting economic recovery while keeping inflationary pressures in check. Worth noticing is that RBI has been raising interest rates since May 2022 to control inflation. The repo rate is the interest rate at which the central bank lends money to commercial banks, and it acts as a benchmark for interest rates in the economy. By maintaining the repo ra...