GUWAHATI, Dec 6: The Reserve Bank of India (RBI) has decided to not hike the repo rate and that it will remain at 6.5%, Governor Shaktikanta Das announced on Friday.
RBI’s decision to not hike repo rates will give a huge relief to borrowers as their equated monthly instalments (EMIs) will not increase.
This makes it the 11th consecutive time the repo rate has remained unchanged at 6.5% although RBI has slashed the cash reserve ratio (CRR) by 50 basis points to 4%.
The decision to keep the repo rate unchanged suggests differences of opinion in the policy panel about the way forward in the wake of the slowdown in the economy.
This decision also comes at a time when India’s inflation surged to 6.2% in October 2024.