The Reserve Bank of India’s (RBI) newly reconstituted Monetary Policy Committee (MPC), which met from October 7-9, on Wednesday kept the key policy rate – repo rate – unchanged at 6.5 per cent for the tenth consecutive monetary policy review.
While the six-member MPC changed the monetary policy stance from ‘withdrawal of accommodation’ to ‘neutral’ in the policy meeting, the panel kept the retail inflation and GDP growth forecasts unchanged at 4.5 per cent and 7.2 per cent for FY2025 respectively.
The RBI’s policy panel kept the Repo rate steady in a 5:1 majority decision. New MPC Member Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development, voted to reduce the Repo rate by 25 basis points