RBI decided to keep the repo rate unchanged at 6.5 per cent for the sixth consecutive time

Current Context: The Reserve Bank of India (RBI) has indeed decided to keep the repo rate unchanged at 6.5%.

• This decision was taken by the Monetary Policy Committee (MPC) during its bi-monthly policy review.
• The repo rate is the rate at which RBI lends money to banks to meet their short-term funding needs.
• The decision to keep the repo rate unchanged is expected to have several implications:
• There is likely to be no impact on loan Equated Monthly Installments (EMIs).
• Home loan interest rates are likely to remain unchanged in the near term.
• The decision is part of an effort to bring down inflation and support growth.
• The real GDP growth for 2023-24 has been projected at 7%, which is slightly less than the 7.3% of 2023-24.
• The RBI’s decision is based on various factors such as the current economic conditions, inflation levels, and global uncertainties.
• The central bank continues to focus on aligning inflation towards its target of 4%.

Question:

Q.1 What is the repo rate decided by the Reserve Bank of India (RBI)?
a. 7%
b. 5%
c. 6.5%
d. 4%