The Reserve Bank of India’s Monetary Policy Committee on Thursday decided to keep the repo rate unchanged at 6.50% for the third time in a row. The repo rate is the interest rate at which the central bank lends money to commercial banks.
“I am happy to note that the Indian economy is exuding enhanced strength and stability despite the massive shocks to the global economy in recent years,” RBI Governor Shaktikanta Das said while making the announcement.
VIDEO | “After detailed deliberations on all relevant aspects, the Monetary Policy Committee unanimously decided to keep the policy repo rate unchanged at 6.5 per cent,” says RBI Governor Shaktikanta Das after RBI MPC meeting. pic.twitter.com/aWsXd1iKW0
— Press Trust of India (@PTI_News) August 10, 2023
Earlier, the Monetary Policy Committee had kept the repo rate unchanged in its meetings held in April and June. This was after six consecutive hikes which saw the lending rates go up by 250 basis points, or 2.50%, since May last year.
Central banks usually increase key lending rates at times of high inflation in economies. Higher key lending rates translate into high interest on loans disbursed by commercial banks. This, in turn, keeps a check on discretionary spending by consumers which is expected to help curb prices rise due to high inflation.
On Thursday,…
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