The Reserve Bank of India (RBI) has decided to maintain the repo rate at 6.5 per cent, highlighting its cautious stance amidst economic uncertainties. This decision comes as the central bank continues to face challenges in keeping inflation within its target range. Experts believe that the RBI's focus on price stability over immediate rate cuts is necessary given the current economic climate and global factors. This stable interest rate environment is also perceived as beneficial for long-term investments in the real estate market.
In a highly anticipated meeting, the Reserve Bank of India's Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5%, following the results of the Lok Sabha election. This marks the eighth consecutive time that the MPC has decided to maintain the same rate. Additionally, the MPC has revised their GDP projection for the 2024 fiscal year to 7.2% from the previously predicted 7%, while also acknowledging potential risks to inflation. The decision has been met with positive reactions from the stock market, but borrowers may continue to face high interest rates on loans, while also seeing an increase in fixed deposit rates.
In its first bi-monthly monetary policy for FY24-25, the Reserve Bank of India decided to keep the repo rate unchanged at 6.5 per cent. This comes after six consecutive rate hikes since May 2022. The decision, approved by a majority vote of 5:1, is expected to keep the momentum of residential real estate sales unimpeded. While prices in the top 7 cities have risen steadily, the unchanged repo rate will provide a much-needed breather to home loan borrowers.
The RBI's Monetary Policy Committee (MPC) maintained the repo rate at 6.50 percent for the sixth consecutive time in the last policy meeting of fiscal 2023-2024. RBI Governor Shaktikanta Das also announced plans to enable resident entities to hedge gold prices in the International Financial Services Centre (IFSC). This was the first MPC meeting after the interim Budget 2024 and the governor stated that the MPC predicts a GDP growth rate of 7 percent in FY25. ZeeBiz.com breaks down the key takeaways of the MPC meeting, including the decision to mandate all regulated entities to provide a 'Key Fact Statement' to borrowers for all retail and MSME loans.
The Reserve Bank of India has once again decided to maintain the repo rate at 6.5%, keeping a tight watch on inflation. This move is in line with the RBI's goal to bring inflation towards its target of 4%. The decision has also been praised by real estate developers as it will support sustainability and affordability in the sector.