Reserve Bank of India (RBI) governor Shaktikanta Das declared that interest rates would remain unchanged, citing lower uncertainty and better-than-expected inflation. The Monetary Policy Committee (MPC), consisting of six members, unanimously voted to maintain the repo rate during its bi-monthly meeting.
This marks the second consecutive policy decision where the RBI has chosen to pause after a series of six rate hikes since May 2023.
The RBI’s decision is favourable for savers as it ensures that deposit rates will remain at their current levels for a longer period.
Das also stated that the central bank would continue to withdraw excess liquidity from the markets to prevent a decline in interest rates.