The Reserve Bank's decision to hold rates and adopt a 'neutral' monetary policy stance is a pragmatic move, and there are expectations of interest rate cuts in coming months, according to industry pla

RBI Governor Shaktikanta Das announced that inflation is nearing target but warned against premature rate cuts. The RBI maintained a steady repo rate of 6.50%, shifting to a 'neutral' stance.

The central bank has kept the repo or short-term lending rate unchanged at 6.5 percent since February 2023, and experts think some easing could only be possible in December. The government has tasked the central bank to ensure that Consumer Price Index (CPI) based retail inflation remains at 4 per cent with a margin of 2 per cent on either side.

The Reserve Bank of India (RBI) has pegged the repo rate unchanged at 6.5 per cent. Governor Shaktikanta Das said while announcing the monetary policy statement on Wednesday that the decision was taken with 5:1 majority.

The Reserve Bank of India kept the repo rate unchanged at 6.5% for the 10th straight time on Wednesday. The six-member committee consisted of Saurabh Bhattacharya, Professor Ram Singh, Dr. Rajiv Ranjan,

This means that all external benchmark lending rates linked to the repo rate will not increase, giving relief to borrowers as their EMIs will not increase.