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.

The Reserve Bank of India held its key interest rate at 6.50% but shifted its policy stance to "neutral," signaling potential rate cuts amid an economic slowdown. Inflation remains within target, but growth concerns loom.

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

India’s central bank kept its policy rate unchanged as expected but left the door open for potential easing, keeping an eye on inflation that may become sticky if tensions in the Middle East escalate further.

While the Reserve Bank of India may keep repo rate on hold, its forward guidance will be crucial for the market direction ahead. Any surprise rate cut could lead to sharp short covering in the markets,