DBT Bureau
Bengaluru, 9 October 2024
- RBI keeps repo rate unchanged at 6.5% for 10th consecutive time
- “The Monetary Policy Committee decided by a majority to keep the policy repo rate unchanged at 6.5%,” the RBI Governor Shaktikanta Das said on Wednesday
- RBI changes stance to ‘neutral’
- A neutral stance gives the RBI the flexibility to adjust interest rates based on the direction of inflation. This is different from the current position of withdrawing accommodation, which doesn’t have any scope for rate cuts.
- Real GDP growth stood at 6.7% in Q1 of current financial year (FY25)
- GDP growth for FY25 is projected to grow by 7.2%, RBI said.
- Indian key market indices- Nifty & Sensex are trading more than 0.6% after RBI policy announcements.
- Lending rate, deposit rate will move in tandem with policy rate movement, said RBI Governor
- The country’s economic growth trajectory remains robust, and with rising inflation risks, the central bank has decided to maintain the policy repo rate while adjusting its policy stance. We welcome the shift to a neutral stance, as it opens the door for potential interest rate cuts in the near future. The real estate sector, particularly the housing market, has experienced strong growth over the past few years. This change in policy stance, along with the prospect of rate cuts, will provide crucial support to the low- and mid-value housing segments, which have seen reduced participation over the last 24 months. Homebuying sentiment remains strong, and with a healthy business environment, we anticipate that the trajectory of monetary policy in the coming quarters will further boost the sector’s growth momentum.” – Shishir Baijal, Chairman and Managing Director, Knight Frank India
