RBI Keeps Repo Rate Unchanged at 5.5%: Relief for Borrowers

The Reserve Bank of India (RBI) has decided not to change the repo rate in today's monetary policy meeting, providing relief to general borrowers. According to this decision, the repo rate will remain at 5.5 percent, and there will be no immediate change in the installments of home loans, vehicle loans, or personal loans. The Monetary Policy Committee (MPC) meeting was held on Tuesday. After the meeting, RBI Governor Sanjay Malhotra informed about this decision in a press conference. He clarified that after reviewing the current economic situation, the MPC unanimously decided to keep the repo rate unchanged.

In the past few months, the RBI has gradually reduced the repo rate. A total reduction of 1% was made over the three months of February, April, and June. This included a reduction of 0.5% in June and 0.25% each in February and April.

Malhotra stated at this time that the current core inflation is stable at 4%, while the CPI-based new inflation rate has fallen to 3.1%. Previously, this rate was 3.7%. However, the GDP growth forecast has been maintained at 6.5%. Regarding industrial growth, he mentioned that it is still somewhat slow and imbalanced. Risks remain due to geopolitical instability, international developments, and changes in trade. Nevertheless, there is stability in the country's economic fundamentals.

According to the RBI, the current account deficit is currently sustainable and under control. The capital position of public banks is also satisfactory, and they have adequate currency reserves. Additionally, Governor Malhotra announced that a new standardized process will soon be implemented to facilitate claims on items in bank lockers.