Why Did The RBI Keep The Repo Rate Steady At 6.5%?

RBI Governor Shaktikanta Das announced the Reserve Bank's decision to maintain the repo rate at 6.5 percent during the last bi-monthly meeting of FY24. Despite projecting a GDP growth of 7 percent for the 2024-25 financial year, slightly lower than the current fiscal year's estimate of 7.3 percent, the bank emphasized steady rural demand, robust urban consumption, and a strengthening investment cycle. Retail inflation, though moderated from its peak in July 2023, remains elevated at 5.69 percent as of December 2023, within RBI's comfort range but requiring continued monitoring. Siddharth Zarabi, Managing Editor of Business Today TV, engages in a conversation with Aditi Nayar, Chief Economist, ICRA; DK Joshi, Chief Economist, CRISIL and Siddhartha Sanyal, Chief Economist, Bandhan Bank.