There is no change in repo rate according to the RBI. It remains at 6.5 percent. This is for the tenth time that the repo rate has not been changed.
With inflation risks persisting amid global economic uncertainties,the RBI’s approach will allow it the flexibility to respond to both inflationary trends and growth needs without making premature policy shifts.
The meeting, which commenced on October 7, has drawn considerable attention as the RBI has consistently held the repo rate at 6.50 per cent over the past nine meetings, carefully balancing inflation risks with the need to support economic growth.
The Monetary Policy Committee (MPC) is assessing key factors such as persistent inflationary pressures, particularly in food prices, and global economic uncertainties.
According to data from the Ministry of Statistics & Programme Implementation, although All India Consumer Price Index (CPI) inflation eased to 3.65 per cent in August–within the RBI’s 2-6 per cent target range–food inflation remains high at 5.65 per cent,exceeding the central bank’s medium-term target of 4 per cent.
Additionally, rising global crude oil prices, driven by geopolitical tensions in West Asia, have further heightened inflationary concerns.
