This means that all external benchmark lending rates linked to the repo rate will not increase, giving relief to borrowers as their EMIs will not increase.

This marks the fourth RBI MPC meeting of the financial year 2024-25. The central bank holds six bi-monthly meetings annually, reviewing various macroeconomic indicators. Previous meetings this financial year took place in April,

The central bank has kept the repo or short-term lending rate unchanged at 6.5 percent since February 2023, and experts think some easing could only be possible in December. The government has tasked the central bank to ensure that Consumer Price Index (CPI) based retail inflation remains at 4 per cent with a margin of 2 per cent on either side.

On Wednesday (9 October), the Reserve Bank of India (RBI) maintained the repo rate at 6.5 per cent for the 10th consecutive time. However, the central bank’s Monetary Policy Committee (MPC) shifted its stance from 'withdrawal of accommodation' to 'neutral.'

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, opened in green on Wednesday ahead of RBI’s monetary policy review meeting. While BSE Sensex was above 81,800, Nifty50 crosses 25,050. At 9:16 AM, BSE Sensex was trading at 81,843.35, up 209 points or 0.26%. Nifty50 was at 25,060.00, up 47 points or 0.19%.

RBI’s new monetary policy committee will announce its decision on interest rates on October 9. Economists say that the MPC with three new members may set the stage for a rate cut

The RBI appointed three new external members to its monetary policy committee, who influenced the shift to a 'neutral' stance on growth, despite differing views on the 6.5% repo rate. Nagesh Kumar emerged as a new dissenter advocating for a rate cut.