NEW DELHI, Dec. 6 (Xinhua) -- Reserve Bank of India (RBI), India's central banking institution, on Friday announced it has kept the repo rate unchanged at 6.5 percent.
Repo rate is the rate at which the central bank lends money to commercial banks in the event of shortfall of funds.
This is the 11th time in a row that the six-member Monetary Policy Committee (MPC) has decided to keep the key rates unchanged.
"After assessing the current and evolving macroeconomic situation, the MPC at its meeting today decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 percent," reads a statement issued by RBI.
"Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25 percent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 percent," it said.
According to the RBI, these decisions align with the objective of achieving the medium-term target for inflation at 4 percent within a band of plus, minus (+/-) 2 percent, while supporting growth.
Meanwhile, the real GDP growth for 2024-25 is projected at 6.6 percent with Q3 at 6.8 percent and Q4 at 7.2 percent.
The real GDP growth for Q1 2025-26 is projected at 6.9 percent and Q2 at 7.3 percent.
