The Reserve Bank of India (RBI) kept interest rates on hold. This means your loan EMIs are likely to stay the same. The RBI decides this rate, called the repo rate, to control inflation and economic growth. Even though inflation is a bit high, the economy is doing well. So, the RBI decided not to change the rate for now. This is the seventh time they’ve kept it the same.
- Reserve Bank of India (RBI) kept the repo rate at 6.5% on April 5, 2024.
- Repo rate is the interest rate at which RBI lends funds to banks, affecting loan EMIs.
- RBI Governor Shaktikanta Das and six MPC members met to evaluate the country’s economic condition.
- Inflation is still above RBI’s target of 4%, with the consumer price index at 5.09% in February due to higher food prices.
- GDP in Q3 of the last financial year was 8.4% due to strong manufacturing, mining & quarrying, and construction performance.
- The repo rate was last changed in February 2023, increasing from 6.25% to 6.5%.
- From May 2022 to February 2023, the repo rate rose by 250 basis points (bps)
