Question
What is the current repo rate as decided by the Reserve
Bank of India (RBI) in its latest Monetary Policy Committee (Dec 2024) review?Solution
The Reserve Bank of India (RBI) decided to maintain the repo rate at 6.5% for the 11th consecutive review. The Monetary Policy Committee (MPC) took this decision to balance the dual objectives of controlling inflation, which rose to 6.2% in October, and supporting economic growth. The neutral stance of the MPC ensures flexibility to respond to emerging economic challenges.
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