The Reserve Bank of India’s (RBI) governor Shaktikanta Das announced today that as decided in the Monetary Policy Meeting (MPC), the repo rate will remain unchanged at 6.5%. This is the 11th consecutive time when it remains unchanged. Of the six members in the Monetary Policy Committee (MPC), four members voted in favour of maintaining the repo rate. Two members voted for reducing the policy repo rate by 25 basis points.

The RBI also maintained status quo in the Bank Rate and the Marginal Standing Facility (MSF) at 6.75%. The Standing Deposit Facility (SDF) rate is maintained at 6.25%. The fixed reverse repo rate stands at 3.35%. The gross domestic growth (GDP) projection was upheld at 7.2% for FY25.

The RBI Governor mentioned that the cash reserve ratio (CRR) was cut by 50 basis points from 4.5% to 4%. With this step, Rs 1.15 lakh crore of liquidity will be infused into the banking system.
The real GDP growth forecast for FY25 has been revised to 6.6% from the earlier 7.2%.

Repo rate is the interest that the RBI charges from banks and financial securities for the short-term loans in India. Lower repo rate fosters economic growth and a higher repo rate can slow economic growth.

The RBI’s MPC meeting was held from December 4 to December 6 and led by RBI Governor Shaktikanta Das.

Source: housing.com