RBI MPC Retains Repo Rate At 6.5%

New Delhi, Aug 10 (KNN) Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday announced Monetary Policy Committee’s (MPC) decision to keep the repo rate unchanged at 6.50%.

The repo rate refers to the rate at which commercial banks borrow money by selling their securities to the Reserve Bank India (RBI).

While the reverse repo rate is the rate at which the central bank borrows money.

He also announced other decisions taken by the central bank amid global economic uncertainties. 

Experts and analysts had earlier predicted that the RBI MPC will keep the key policy rate unchanged.

RBI has proposed to put in place a transparent framework for reset of interest rates on floating interest loans. 

The framework will require Regulated Entities to (i) clearly communicate with borrowers for resetting the tenor and/or EMI; (ii) provide options for switching to fixed rate loans or foreclosure of loans; (iii) disclose various charges incidental to the exercise of the options; and (iv) ensure proper communication of key information to borrowers.

He retained FY24 GDP growth projections at 6.5%, but raised the CPI inflation forecast for FY24 to 5.4%.  (KNN Bureau)