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RBI Keeps Key Lending Rate At 6.5%

RBI Keeps Key Lending Rate At 6.5%

The Reserve Bank of India (RBI) has maintained its key lending rate unchanged for the eighth consecutive time, citing robust economic growth that allows it to focus on reducing inflation. RBI Governor Shaktikanta Das, addressing a press conference, remarked, "The world has gone through one crisis after another in recent years, but the Indian economy exhibits strong fundamentals. We need to remain vigilant in an uncertain global environment." He emphasized that the RBI remains committed to aligning inflation to 4% on a durable basis.

The Monetary Policy Committee (MPC) decided to keep the repo rate steady at 6.5%, with the last rate change occurring in February 2023. Governor Das noted that four out of the six MPC members voted in favor of maintaining the current repo rate.

Following the announcement, Indian shares held steady, reflecting the market's expectation of this decision. The BSE Sensex rose by 0.72% to 75,618 points, and the NSE Nifty increased by 0.74% to 22,991 points.

This decision reflects the RBI's ongoing strategy to balance economic growth with inflation control. By keeping the repo rate unchanged, the RBI aims to provide stability in the financial markets while addressing inflationary pressures. Governor Das highlighted the need for vigilance given the uncertain global economic environment, suggesting that the RBI is prepared to adjust its policies as necessary to maintain economic stability.

The MPC's decision to hold the repo rate at 6.5% indicates confidence in India's economic fundamentals, despite global uncertainties. The steady lending rate is part of a broader effort to ensure that inflation targets are met without disrupting the economic growth trajectory. The RBI's focus on a stable and controlled inflation rate underscores its commitment to long-term economic health and resilience.

In summary, the RBI's decision to keep the key lending rate unchanged reflects a cautious and balanced approach to managing India's economic growth and inflation, with a commitment to maintaining financial stability amidst global uncertainties.

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RBI Keeps Key Lending Rate At 6.5%

RBI Keeps Key Lending Rate At 6.5%

The Reserve Bank of India (RBI) has maintained its key lending rate unchanged for the eighth consecutive time, citing robust economic growth that allows it to focus on reducing inflation. RBI Governor Shaktikanta Das, addressing a press conference, remarked, "The world has gone through one crisis after another in recent years, but the Indian economy exhibits strong fundamentals. We need to remain vigilant in an uncertain global environment." He emphasized that the RBI remains committed to aligning inflation to 4% on a durable basis.

The Monetary Policy Committee (MPC) decided to keep the repo rate steady at 6.5%, with the last rate change occurring in February 2023. Governor Das noted that four out of the six MPC members voted in favor of maintaining the current repo rate.

Following the announcement, Indian shares held steady, reflecting the market's expectation of this decision. The BSE Sensex rose by 0.72% to 75,618 points, and the NSE Nifty increased by 0.74% to 22,991 points.

This decision reflects the RBI's ongoing strategy to balance economic growth with inflation control. By keeping the repo rate unchanged, the RBI aims to provide stability in the financial markets while addressing inflationary pressures. Governor Das highlighted the need for vigilance given the uncertain global economic environment, suggesting that the RBI is prepared to adjust its policies as necessary to maintain economic stability.

The MPC's decision to hold the repo rate at 6.5% indicates confidence in India's economic fundamentals, despite global uncertainties. The steady lending rate is part of a broader effort to ensure that inflation targets are met without disrupting the economic growth trajectory. The RBI's focus on a stable and controlled inflation rate underscores its commitment to long-term economic health and resilience.

In summary, the RBI's decision to keep the key lending rate unchanged reflects a cautious and balanced approach to managing India's economic growth and inflation, with a commitment to maintaining financial stability amidst global uncertainties.

 
 
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