RBI MPC Keeps Repo Rate Unchanged at 6.5% for 10th Time, Changes Stance to ‘Neutral’
RBI MPC October 2024: The RBI MPC on Wednesday, October 9, kept the key repo rate unchanged for the 10th consecutive time at 6.5 per cent. The repo rate decision has been taken with a 5:1 majority. The RBI MPC decided unanimously “to change the stance to ‘neutral’ and to remain unambiguously focussed on durable alignment on inflation with the target while supporting growth”.
Earlier, the RBI MPC had a stance of ‘Withdrawal of Accommodation’.
While announcing the latest bi-monthly monetary policy statement on October 9, RBI Governor Shaktikanta Das said, “Flexible inflation targetting has served us well.”
The RBI is mandated to keep the retail inflation at 4 per cent (with a flexibility of 2 per cent up or down).
The RBI MPC 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.
The reverse repo rate stands at 3.35 per cent.
The repo rate is the rate at which the RBI lends money to the commercial banks, whereas the reverse repo rate on commercial banks’ deposits with the RBI.
