Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has kept the repo rate unchanged. Below is the comment:

Anurag Mathur - CEO, Savills India

“The Monetary Policy Committee (MPC) of the RBI decided to keep the interest rates unchanged at 6.5 percent, leading to a rate pause for the eighth consecutive time in its policy decision. Although core inflation declined steadily for 11 months, the MPC has decided to remain focused on its stance of 'Withdrawal of Accommodation' to progressively align the inflation with the target while supporting the economic growth. Owing to expectations of above-average monsoon along with the strengthening of manufacturing sector, FY25 GDP is projected at 7.2 percent. Similarly, inflation for FY25 is expected to soften to 4.5 percent but volatility in food prices remains a major challenge. In summary, the RBI's policy decision to maintain status quo fosters consumer confidence and bodes well for the already thriving economy, especially the housing sector which is already witnessing a strong demand across all major cities of India. However, near-term fluctuations in food inflation will have to be monitored and tackled prudently.”