The repo rate remains fixed at 6.5 percent by the Reserve Bank of India (RBI). In making the announcement of the monetary policy statement on Wednesday, Governor Shaktikanta Das stated that a 5:1 majority had made the decision.

The MPC made the decision to shift the monetary policy from a removal of accommodation to a neutral position. "After evaluating the macroeconomic conditions and future outlook, the Monetary Policy Committee (MPC) decided, with 5 out of 6 members in agreement, to maintain the policy rate at 6.5 percent," the governor of the RBI stated. 

This suggests that interest rates can be changed by the central bank in response to changes in the direction of inflation. Additionally, the Reserve Bank of India maintained the 6.25 percent and 6.75 percent SDF, MSF, and bank rates, respectively.

The rate of reverse repo is now 3.35 percent. Das said that the MPC also resolved to stay focused on a sustainable alignment of inflation within the +/-4 per cent objective.

According to the central bank, third-quarter inflation for the fiscal year would increase to 4.8% and drop to 4.2% in Q4FY25. In FY25, retail inflation was projected to be 4.5% on the assumption of a regular monsoon. According to Das, September is expected to experience an increase in retail inflation because of rising food costs and an unfavorable foundation.

The RBI forecasted inflation for Q1FY26 at 4.3%, which is somewhat higher than the 4% mark. The Indian government has directed the RBI to keep inflation at four percent.

Additionally, the central bank kept its growth projections for FY25 at 7.2%. The Reserve Bank of India projected GDP growth of 7% in Q2FY25, 7.4% in Q3FY25, 7.4% in Q4FY25, and 7.3% in Q1FY26. The central bank has maintained the repo rate at its current level for the tenth consecutive time.

The meeting of the Monetary Policy Committee (MPC) took place from October 7–9, 2024. Following the government's appointment of three additional external members, this was the inaugural meeting of the MPC.