Reserve Bank of India (RBI) Governor Shaktikanta Das. File
| Photo Credit: Reuters

The Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday (August 8) announced the bi-monthly monetary policy statement, keeping the repo rate, which is the central bank’s rate for short-term loans to banks, unchanged at 6.5%.

In the Monetary Policy Committee (MPC) meeting, majority members voted to hold the rates. Four voted in favour and two against. Following the policy announcement, Mr. Das will hold a press conference at 12 p.m. on Thursday, which will be streamed live on the RBI’s X handle.

The RBI Governor, speaking at the Bombay Chamber of Commerce and Industry, projected the real GDP growth for the current financial year at 7.2%. RBI has adjusted its CPI inflation forecast for FY25 to 4.4%.

Also read | Policy repo rate unchanged at 6.5%; real GDP growth for FY25 projected at 7%

India’s GDP growth estimates and inflation forecast will be key to watch out for in the RBI policy on Thursday.

Inflation continues to be a significant factor influencing the RBI’s monetary policy stance. Despite core inflation being contained and a noticeable 15-20% drop in commodity prices, especially metals, from their 2024 peak, food inflation remains problematic. Experts emphasize that inflation in India still exceeds the RBI’s target range, making it unlikely for the central bank to cut rates until inflation aligns with the 4% target.