RBI Repo Rate: The RBI’s Monetary Policy Committee (MPC) meeting began on September 29th and its results are being announced today, October 1st. RBI Governor Sanjay Malhotra, while explaining the MPC’s decisions, said that the repo rate has been unanimously kept unchanged. This means it will remain stable at 5.5%. This means we will have to wait longer for cheaper loans and lower EMIs.
The Standing Deposit Facility (SDF) rate under the Liquidity Adjustment Facility (LAF) remains unchanged at 5.25 per cent, and the Marginal Standing Facility (MSF) rate and the Bank Rate remain at 5.75 per cent. RBI Governor Sanjay Malhotra said, “The growth-inflation dynamics have changed since the August monetary policy. Systemic reforms in GST will have the impact of controlling inflation. Higher tariffs are likely to slow export growth.”
RBI Governor also said, “The overall inflation outlook has weakened significantly in recent months. Core inflation has been moderated from 3.7% in June to 3.1% in August and further reduced to 2.6% recently.” RBI Governor Malhotra also said that the real GDP growth forecast for this year has been raised to 6.8% from the earlier 6.5%, reflecting a stronger-than-expected economic performance.
The Reserve Bank of India has announced that banks in Bhutan, Nepal and Sri Lanka will now be able to provide loans to Non-Resident Indians (NRIs) in Indian Rupees. The repo rate has been unchanged for the second consecutive time, following three cuts totaling 100 basis points (1%) in February, April, and June. The RBI has kept the Standard Deposit Facility (SDF) rate unchanged at 5.25%. The Marginal Standing Facility (MSF) rate will remain at 5.75%.