RBI maintains repo rate at 6.5%, GDP growth at 7%

Chennai: As economists had predicted, the Monetary Policy Committee (MPC) of the Reserve Bank of India has not changed the repo rate from 6.5 per cent.

Announcing the decision after three-day deliberations of the MPC, RBI Governor Shaktikanta Das said on Friday that the committee has unanimously decided to keep the repo rate at 6.5 percent.

He also said that five out of six MPC members voted in favor of continuing the housing withdrawal stance.

Das said that keeping in mind the economic factors, the MPC has estimated the GDP growth rate to be 7 percent in the financial year 2024.

As far as the inflation rate is concerned, the MPC’s forecast was 5.4 per cent for 2023-24, taking into account various domestic issues including expected agricultural output.
Das also said that there is uncertainty due to the geopolitical situation. He said the MPC is alert and ready to take necessary action. The MPC meeting was held on 6-8 December.