RBI keeps Repo Rate Unchanged At 6.5%, Says "Last Mile Of Disinflation Ardous"

Reserve Bank of India (RBI) governor Shaktikanta Das said that the central bank has maintained the policy repo rate at 6.5%. The central bank maintained neutral stance with a 4:2 majority, he added. The constant repo rate signals a cautious approach to current economic conditions, as per Das. "Monetary policy has a wide-ranging impact, price stability is important for every segment of society," Das said during his last MPC statement. This is for the 11th consecutive time that the RBI has kept the repo rate unchanged. The RBI has maintained the repo rate at 6.5% since February 2023. The pause in repo rate hikes came after 6 straight rate hikes of 250 basis points since May 2022. In the October MPC meet, the central bank kept the repo rate at 6.5% while shifting its stance from 'accommodative' to 'neutral'.