The Reserve Bank of India's Monetary Policy Committee today kept the benchmark interest rate or repo rate unchanged at 6.5 per cent for the fourth consecutive time in 2023-24. The rate setting panel of the central bank also retained its policy stance at "withdrawal of accommodation"
With this, the committee keeps the policy rate untouched in 2023-24 after increasing it by 250 basis-points between May 2022 and February 2023.
"RBI's stance of maintaining the repo rate at 6.5 per cent is another cautious step to keep inflation in check, as well as to sustain current levels of consumer spending and economic growth. This move will help maintain the momentum in housing sales during the festive season coming up, with many investors and fence sitters expected to the come to the fore," said Boman Irani, President, CREDAI National.
For projections, the committee kept its estimate for India's GDP growth for 2023-24 unchanged at 6.5 per cent, and for headline inflation at 5.4 per cent.
The central bank, however, revised the quarterly inflation projections of September and December quarters. It raised the estimate for September quarter to 6.4 per cent from 6.2 per cent, and lowered for December quarter to 5.6 per cent from 5.7 per cent.