RBI keeps repo rate unchanged at 6.5 percent

Category : Business and economics Published on: April 11 2023

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The Reserve Bank of India (RBI) has kept the repo rates unchanged at 6.5 percent.
The Monetary Policy Committee (MPC) of the central bank decided to take a pause after a rate hike seen in previous six consecutive policies.
The Monetary Policy Committee meeting of the RBI took place on April 3, April 5, and April 6 to begin the central bank's first bimonthly review of the new fiscal year.
A year is divided into six bimonthly reviews of the central bank's monetary policy. Additionally, there are out-of-cycle reviews, where the central bank holds extra sessions in urgent situations.
The RBI's Monetary Policy Committee (MPC) decided to increase the repo rate by 25 basis points, to 6.5 percent, at its most recent meeting in early February.
Since May 2022, the RBI has increased the repo rate—the interest rate at which it loans to banks—by 250 basis points.
RBI has projected GDP growth for 2023-24 at 6.5 percent with risks evenly balanced and inflation to moderate to 5.2 percent.
Repo rate is the rate at which RBI lends to banks generally against government securities while the reverse repo is the rate at which RBI borrows money from the banks.