The Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5 percent for the eighth consecutive time on Friday, aiming to bring inflation down to its medium-term target of 4%. The Monetary Policy Committee (MPC), in a majority decision with four out of six members agreeing, opted to hold the repo rate steady.

Consequently, the standing deposit facility (SDF) rate remains at 6.25 percent, while the marginal standing facility (MSF) rate and the bank rate remain at 6.75 percent.

RBI Governor Shaktikanta Das revised the GDP (gross domestic growth) projection to 7.2 percent for the financial year, up from the earlier estimate of 7 percent. The quarterly growth projections stand at 7.3 per cent for Q1, 7.2 per cent for Q2, 7.3 per cent for Q3, and 7.2 per cent for Q4

In his post-policy press conference, Das emphasized the importance of a balanced approach towards monetary policy. He reiterated the MPC’s commitment to gradually withdrawing accommodation to ensure that inflation aligns with the targeted range while supporting economic growth.

“Monetary policy must continue to remain disinflationary and be resolute in its commitment to aligning inflation to the target of 4 percent on a durable basis to sustain price stability and a strong foundation,” Das said, adding that the risks to the growth outlook are evenly balanced.

(With ANI Inputs)