The Reserve Bank of India’s Monetary Policy Committee (MPC) made a few announcements on October 09, 2024.
The repo rate stands at 6.5 percent and has not been changed.
The previous policy stance of ‘Withdrawal of Accommodation’ has now been changed to ‘Neutral.’
The SDF rate still stands at 6.25 percent.
The MSF rate is maintained at 6.75 percent as before.
The Bank Rate remains unchanged at 6.75 percent levels.
GDP growth for FY25 has also, however, not been changed and is expected at 7.2 percent.
With fiscal year 2025 in sight, the CPI inflation prediction remains constant at 4.5% for this year.
The MPC determined not to alter the repo rate as the food market was experiencing inflationary pressures with the above average food prices. Nonetheless, there is a push for the RBI to reduce rates given that other central banks are providing them and that forecasted rainfall may indicate a good harvest.
