October MPC Meet: RBI keeps Repo Rate unchanged at 6.5%, Check impact on home and car loans

The impact of no-change in the repo rate is expected to be nil as the Scheduled banks will have to maintain the similar rate of interest on its loans.

Written by: Abhijeet Sen

Updated: October 9, 2024, 10:35 AM IST

Share

Share Article

• Facebook
• WhatsApp
• X
• Email
• Telegram
• Linkedin

https://www.india.com/business/breaking-news-rbi-keeps-repo-rate-unchanged-at-6-5-7309504/ Copy

RBI Governor File Image- ANI

Breaking News: In its much-awaited October meeting, the Monetary Policy Committee of the Reserve Bank of India has kept its Repo Rate unchanged at 6.5 bps. Earlier, it was expected from the experts that RBI may decrease the rates keeping in mind Fed’s recent action but some experts also opined that the RBI may keep it unchanged.

Impact on Home and Car loans:

The impact of no-change in the repo rate is expected to be nil as the Scheduled banks will have to maintain the similar rate of interest on its loans. RBI maintained status quo despite the US Federal Reserve lowering the benchmark rates by 50 basis points last month. The central banks of some developed nations have also reduced their interest rates.

Announcing the fourth bi-monthly monetary policy for the current financial year, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 per cent.

The RBI has maintained status quo on benchmark interest rate since February 2023. Das said RBI will remain watchful of elevated food inflation even when India GDP growth remains strong.

This was the first meeting of the reconstituted MPC. The three newly appointed external members are Ram Singh, Saugata Bhattacharya and Nagesh Kumar. The MPC was reconstituted by the government last month.

(With inputs from agencies)