RBI Keeps Repo Rate At 6.5%. What This Means For Economy And Why Managing Inflation Should Be Top Priority

The International Monetary Fund (IMF) predicts a 6.1 percent growth rate for the Indian economy in the next fiscal year, but inflation could hinder this progress. If inflation spirals out of control, the RBI may have to increase interest rates, impacting India's GDP growth and underlining the critical need to address inflation and its potential consequences.

RBI Governor Shaktikanta Das arrives to address a press conference on monetary policy statement, at the RBI headquarters, in Mumbai on December 8, 2023.

Source : PTI

The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5 percent for the fifth consecutive time, demonstrating confidence in the Indian economy's resilience amid global uncertainties. The Indian economy continues its growth trajectory, bolstered by strong domestic demand and a notable improvement in the manufacturing sector. In a move benefiting consumers, the RBI has expanded the UPI transaction limit for sectors like hospitals and educational institutions from ₹1 lakh to ₹5