Repo rate will remain at a high level for the time being, RBI Governor Shaktikanta Das made a big comment

Reserve Bank of India (RBI) Governor Shaktikanta Das has made a big comment regarding the repo rate.

The Governor said that the repo rate will remain at a high level for the time being and only time will tell for how long it will remain at this high level. The Governor further said that in view of the current geopolitical crisis, major central banks around the world have raised their key policy rates to tackle high inflation.

Till now RBI has increased the repo rate by 250 basis points from May 2022 to February 2023. However, after February 2023, RBI has kept the repo rate constant at 6.5 percent.

Speaking at the Kautilya Economic Conclave held in Delhi, Governor Das said the monetary policy should be actively price accommodative to ensure that the decline in domestic inflation from the high of 7.44 percent in July continues smoothly.

In the MPC meeting of RBI held this month, a decision has been taken to keep the repo rate stable. This was the fourth consecutive time that the repo rate has been kept constant at 6.5 percent. The MPC of RBI meets once every two months.

The repo rate is the rate at which RBI gives money to the banks of the country. This means that the more RBI increases the repo rate, the higher the rate the bank will get money, and then the bank will give money to us and you at the higher interest rate.

In the same conference, Finance Minister Nirmala Sitharaman expressed disappointment with multilateral institutions like the Bank, United Nations, United Nations Security Council, World Health Organization, etc., and said that the influence of all these has reduced at the global level and there is no point in saying this. There should be no hesitation.