The Reserve Bank of India (RBI) has maintained the repo rate at 6.5% for the eighth straight time, continuing its stance of ‘withdrawal of accommodation’. This reflects the central bank’s firm focus on controlling inflation and maintaining economic stability.
Key Policy Rates and Forecasts
Other rates such as the reverse repo (3.35%), MSF rate (6.75%), and bank rate (6.75%) remain unchanged.
The GDP growth forecast for FY25 is held at 7.2%, while CPI inflation is projected at 4.5%. The RBI highlighted upside risks like food price spikes, global commodity volatility, and supply chain disruptions.
Also Read: India’s WPI Inflation Rises to 2.61% in May: Impact on Markets
No Change for Borrowers and Depositors
With the repo rate unchanged, EMIs on floating-rate loans will remain steady, and fixed deposit returns are expected to stay stable. Borrowers and savers won’t see any immediate change in interest rates.
Market Outlook and Expert Views
Experts have welcomed the RBI’s cautious stance, calling it appropriate amid global uncertainties. Some analysts believe rate cuts could be considered later in FY25 if inflation stays within target and growth remains solid.
The RBI remains committed to price stability, liquidity management, and supporting India’s long-term economic momentum.
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