Business desk
7 June
Sandeep Dhand Ludhiana
In a recent announcement, Reserve Bank of India (RBI) Governor Shaktikanta Das declared that the central bank has decided to keep the repo rate unchanged at 6.50%. This marks the third consecutive time in 2024 that the RBI has opted not to alter the rate, as part of its ongoing efforts to manage inflation effectively.
The RBI’s decision comes at a time when the nation is awaiting the swearing-in of a new government. Despite its independence, the central bank has chosen to maintain stability rather than implement any significant policy changes at this juncture. The RBI’s steady approach underscores its commitment to curbing inflation, which remains a priority in the current economic environment.
Bank customers hoping for a reduction in repo rates are likely to be disappointed by this decision. However, the RBI’s cautious stance suggests that a rate cut could be on the horizon if inflation stays within manageable levels, the government’s budgetary policies remain supportive, and the monsoon season proves favorable.
The next meeting of the Reserve Bank will be closely watched, with many expecting that these factors could potentially lead to a reduction in the repo rate. For now, the RBI remains focused on maintaining economic stability and controlling inflation.