The Reserve Bank of India (RBI) has chosen to maintain the key repo rate at 6.5%, defying market expectations for a potential cut amidst looming national elections. RBI emphasizes its commitment to aligning inflation with the 4% target, projected to be achieved by the June-August quarter. Home loan rates have already seen a reduction from 2023 levels, with the lowest currently around 8.30%. New borrowers are advised to lock in the favorable rates, while existing borrowers may face challenges for a few more months. Transparency initiatives, including displaying all rates, have been welcomed. The RBI’s decision is seen as advantageous for homebuyers and prompts depositors to consider fixed deposit instruments in the current tight liquidity conditions.
RBI Holds Steady on Repo Rate at 6.5%, Focusing on Inflation Control Amid Elections
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