The bank has kept the repo rate unchanged at 6.5 per cent since February 2023; the last time the RBI had reduced the rate was during Covid times and thereafter, it was gradually raised to 6.5 per cent
RBI's approach to the Covid situation included measures such as loan moratoriums, easing of working capital financing and deferment of interest restructuring among others.
I recognise that there exists space for future rate cuts if the inflation evolves in line with our expectations. This space needs to be used judiciously to support recovery in growth, says RBI Governor
