MPC Holds Repo Rate at 6.50% to Balance Inflation Target and Support Growth Amid Domestic GDP Slowdown and Rising Inflation.

The Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 6.50% and maintain a neutral monetary policy stance, focusing on aligning inflation with a 4% target while supporting growth. The global economy remains stable, but domestic GDP growth slowed to 5.4% in Q2:2024-25 due to weak private consumption and investment. Inflation rose to 6.2% in October, driven by food prices, but is expected to moderate. GDP growth for 2024-25 is projected at 6.6%, with inflation at 4.8%. The MPC emphasized the need for price stability to support economic growth amid geopolitical and market volatility.