For the seventh time in a row, the RBI maintains the repo rate at 6.5%

For the seventh consecutive Friday, the Reserve Bank of India held its benchmark interest rate at 6.5%, citing worries about food inflation in light of the IMD’s forecast of above-average maximum temperatures in April and June.

The EMIs on house and car loans are probably going to be consistent for a little longer since the RBI has maintained key policy rates at this level. Since February 2023, the central bank has maintained constant interest rates.

The RBI maintained its growth and inflation projections for the current fiscal year at 7% and 4.5%, respectively, while announcing the first bi-monthly monetary policy for the current fiscal year.

“It (the MPC) decided by a 5 to 1 majority to keep the policy repo rate unchanged at 6.50 percent after a thorough assessment of the evolving macroeconomic and financial developments and the outlook,” RBI Governor Shaktikanta Das said.

He went on to say that the six-member MPC will continue to concentrate on removing accommodation in order to sustain growth while ensuring that inflation gradually reaches its objective.

Experts decide how to maintain price stability.
Experts said on Friday that the Reserve Bank’s monetary policy decision to maintain the key interest rate at its current level and concentrate on reducing inflation demonstrates the central bank’s commitment to ensuring price stability and steady economic development. For the seventh consecutive month, the Reserve Bank maintained the benchmark interest rate at 6.5%, citing worries about food inflation in light of the IMD’s forecast of above-average maximum temperatures from April to June. The EMIs on house and vehicle loans are probably going to stay the same for a little longer since the central bank kept key policy rates unchanged. Since February 2023, the RBI has not adjusted interest rates.

The IMF projects 8% for India, not us.
The International Monetary Fund has said that Krishnamurthy Subramanian, Executive Director, did not speak for the organization when he made his recent comments on India’s growth statistics; rather, he was speaking on behalf of India at the international organization. The opinions expressed by Mr. Subramanian were those of his representative for India at the IMF, according to Julie Kozack, an IMF spokesman, who talked with reporters here on Thursday. She was answering a question on recent comments made by Subramanian, in which he predicted that India will expand at a pace of 8%, which is different from the most recent growth rate predictions made by the IMF.