The Reserve Bank of India (RBI) has pegged the repo rate unchanged at 6.5 per cent. Governor Shaktikanta Das said while announcing the monetary policy statement on Wednesday that the decision was taken with 5:1 majority.

This means that all external benchmark lending rates linked to the repo rate will not increase, giving relief to borrowers as their EMIs will not increase.

The central bank has kept the repo or short-term lending rate unchanged at 6.5 percent since February 2023, and experts think some easing could only be possible in December. The government has tasked the central bank to ensure that Consumer Price Index (CPI) based retail inflation remains at 4 per cent with a margin of 2 per cent on either side.

In its latest monetary policy meeting, the Reserve Bank of India ( RBI ) kept the repo rate unchanged at 6.5 per cent for the 10th consecutive time. The decision, made by a majority of 5 out of 6 members of the Monetary Policy Committee (MPC),