RBI MPC meeting - Decision to keep repo rate at 6.5%: Governor Shaktikanta Das

The Monetary Policy Committee (MPC) headed by Governor Shaktikanta Das of the Reserve Bank of India (RBI) on Friday revealed that it has decided to keep the repo rate unchanged at 6.5 per cent. This is the fifth time in a row that the central bank has chosen to maintain a pause on rate hikes.

Announcing the address, Das said the MPC unanimously voted to keep the interest rate unchanged. Further, the governor said that the committee decided to stay focused on the withdrawal of accommodation, and 5 members voted in favour of the decision.

Besides, the standing deposit facility and marginal standing facility rates remain unchanged at 6.25 and 6.75 per cent respectively. The governor explained that the move was taken to 'ensure gradual convergence of inflation to the target while supporting growth'.

What is Repo Rate?

Definition: Repo rate is the rate at which the central bank of a country (Reserve Bank of India in the case of India) lends money to commercial banks in case of any shortage of funds. The repo rate is used by monetary authorities to control inflation.