The Reserve Bank of India today decided by a majority of 4:2, to keep the policy repo rate unchanged at 6.50 per cent for the eleventh time in a row. Consequently, the standing deposit facility (SDF) rate remains at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. The RBI has maintained the status quo on benchmark interest rates since February 2023.
The RBI has also slashed Cash Reserve Ratio (CRR) by 50 basis points to 4 per cent, to ease the potential liquidity stress. This move would unlock ₹1.16 lakh crore bank funds.
Speaking after the RBI’s December monetary policy meeting, RBI Governor Shaktikanta Das reaffirmed the central bank’s unwavering commitment to price stability amidst ongoing inflationary pressures. The RBI revised its inflation forecast for FY25 to 4.8%, up from the previous estimate of 4.5%.
The MPC also decided unanimously to continue with the ‘neutral’ stance and to remain unambiguously focused on a durable alignment of inflation with the target, while supporting growth. The Monetary Policy Committee (MPC) met on the 4th, 5th and 6th of December.
