RBI MPC Announcement: There will be no change in home loan EMI, RBI kept the repo rate unchanged at 6.5%

New Delhi| The Monetary Policy Committee of the Reserve Bank of India has not made any change in the policy interest rates. The repo rate was retained at 6.5% following discussions at the MPC 51st meeting. RBI Governor Shaktikanta Das made this announcement after the three-day long MCC meeting on Thursday. All MPC members agreed to keep the stance neutral. It is clear from the decision of RBI MPC that at present there will be no change in the home loan EMI of common people.

According to the central bank governor, RBI kept the growth forecast for the current financial year unchanged at 7.2 percent. RBI Governor Shaktikanta Das said the flexible monetary policy framework has completed 8 years, a major structural reform. RBI Governor Shaktikanta Das said the central bank changed the monetary policy stance to ‘neutral’. He said the RBI has kept the benchmark interest rate unchanged at 6.5 per cent for the 10th consecutive time.

RBI Governor Shaktikanta Das said the flexible monetary policy framework has completed 8 years, a major structural reform. RBI Governor Shaktikanta Das said the central bank has changed the monetary policy stance to ‘neutral’. He said the RBI has kept the benchmark interest rate unchanged at 6.5 per cent for the 10th consecutive time.

New Delhi| The RBI has projected retail inflation to be 4.5 per cent during FY2025 in view of the normal monsoon. “Food inflation will ease later this year due to good monsoons and adequate buffer stocks”, Das said Das said retail inflation is expected to rise significantly in September due to adverse base and rise in food prices. The RBI Governor reported that the Monetary Policy Committee decided 5:1 in favor of keeping the status quo on the interest rate. The Governor of the Reserve Bank of India said that the health standards of Indian banks remain strong. However, he also cautioned banks against consumer loan and credit card dues.

After announcing the decisions taken in the MPC meeting, RBI also reiterated the famous statement of Mahatma Gandhi. He said, “When the method is good success is the point to come in the end” (success has to come to you if your way of working is fine).

Repo rate is the interest rate at which commercial banks take loans from the central bank to meet their immediate needs. RBI uses it to control inflation. The repo rate remaining unchanged means that there is little possibility of change in monthly installment (EMI) on various loans including house, vehicle. Das said, despite challenges at the global level, the country’s economic fundamentals remain strong.

Based on the current situation, the GDP (Gross Domestic Product) growth rate in the current financial year has been maintained at 7.2 percent.’’ Along with this, the estimate of retail inflation to be 4.5 percent in the current financial year has also been maintained. The MPC meeting, which ran from October 7, 2024 to October 9, 2024, remained the focus of the market. Earlier, the central bank had kept the repo rate stable at 6.50 percent for the last nine consecutive meetings.