THE JHARKHAND STORY DESK
Mumbai, April 5: For the seventh time in a row, the Reserve Bank of India on Friday decided to maintain the policy repo rate unchanged at 6.5 per cent and stated that it continues to be cautious about potential risks to food inflation.
The repo rate refers to the interest rate at which banks obtain short-term funding from the Reserve Bank of India (RBI) to manage any short-term liquidity gaps they may encounter.
After six rate increases in a row totalling 250 basis points since May 2022, the rate increase cycle was put on hold in April of last year.
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Governor of the RBI Shaktikanta Das stated that this is the first monetary policy statement of the current fiscal year 2024–25.
“It was decided by a majority of 5:1 to keep the interest rate unchanged at 6.50 per cent. Consquently the Standing Deposit Facility, the SDF rate remains at 6.25 per cent. Marginal Standing Facility (MSF) rate and the bank remain at 6.75 per cent,” said Das.
He mentioned that the Monetary Policy Committee (MPC) will continue to closely monitor the situation regarding food inflation.