This has been marked as the 9th time in a row that the MPC has kept the repo rate unvaried (Image: X @Shaktikanta Das)

RBI Governor Shaktikanta Das on Thursday said that the Monetary Policy Committee has decided to keep the policy repo rate unvaried at 6.5 per cent and the standing deposit facility (SDF) at 6.25 per cent, the bank rate along with the marginal standing facility (MSF) rate at 6.75 per cent. Since the repo rate remains unchanged, there will be no impact on loan EMIs keeping it at 6.5 per cent.

This has been marked as the 9th time in a row that the MPC has kept the repo rate unvaried as the decision was taken on account of the majority of the vote as 4 out of 6 members supported it. As per the previous RBI reports, MPC has maintained keeping the repo rate at 6.5 per cent from February till now. The MPC is responsible for setting the repo rate considering the 4 per cent inflation target coping with the objectives of the financial growth of the country.

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The Monetary Policy Committee (MPC) has six members with 3 central bank officials and 3 external members reforging every 4 years. The external members of the current MPC include RBI Governor Shaktikanda Das who is about to end his term in the coming December, Executive Director Rajiv Ranjan and Deputy Governor Micheal Patra. The current bench will experience significant modifications by the end of this year as the three external members will halt in October and can’t be renewed further.

The repo rate is a term used to measure the rate at which the South African Reserve Bank lends money to private banks. It is marked as an important consideration that it affects monthly repayments of loans and calculates how much interest should be paid in the overall period. If the repo rate increases the repayment charges go up.

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