On October 9, 2024, the Reserve Bank of India (RBI) kept the policy repo rate steady at 6.5% for the tenth consecutive time. Five out of six members of the Monetary Policy Committee (MPC) supported the decision. Other key rates, such as the Standing Deposit Facility (SDF) rate at 6.25% and both the Marginal Standing Facility (MSF) rate and the bank rate at 6.75%, also remained unchanged.
RBI Governor Shaktikanta Das announced a shift in the central bank’s monetary policy stance from “withdrawal of accommodation” to “neutral.” This change allows the RBI to balance inflation control with economic growth support. Despite risks from rising global crude oil prices and geopolitical tensions, India’s inflation rate eased to 3.65% in August, within the RBI’s target range of 2-6%, though food inflation remained high at 5.65%.
The neutral stance provides the RBI with flexibility to respond to inflationary pressures and growth objectives without rushing policy decisions.
