RBI keeps policy rate unchanged for 10th time in a row

PTI, Oct 9, 2024, 10:29 AM IST

Representative image (Credit; PTI)

Mumbai: The Reserve Bank of India on Wednesday decided to keep the policy rate unchanged for the tenth time in a row but changed its stance to ‘neutral’ that may lead to a cut in the forthcoming policies.

RBI maintained status quo despite the US Federal Reserve lowering the benchmark rates by 50 basis points last month. The central banks of some developed nations have also reduced their interest rates.

Announcing the fourth bi-monthly monetary policy for the current financial year, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 per cent.

The RBI has maintained status quo on benchmark interest rate since February 2023.

Das said RBI will remain watchful of elevated food inflation even when India GDP growth remains strong.

This was the first meeting of the reconstituted MPC. The three newly appointed external members are Ram Singh, Saugata Bhattacharya and Nagesh Kumar.

The MPC was reconstituted by the government last month.