USD/INR drifts lower after RBI keeps repo rates unchanged at 6.50%

Indian Rupee Recovers After RBI Maintains Repo Rate at 6.50% in Latest Monetary Policy

The Indian Rupee (INR) showed signs of recovery on Friday, rebounding from its all-time low in the previous session. This comeback followed the Reserve Bank of India’s (RBI) announcement of its fifth monetary policy review for the financial year 2024-25 (FY25).

In a move widely anticipated by the markets, the RBI Monetary Policy Committee (MPC) opted to maintain the repo rate at 6.50% for the 11th consecutive meeting. The decision, which reflects a unanimous consensus among MPC members, underscores a neutral policy stance, signaling the central bank’s cautious approach amid prevailing economic conditions.

The announcement appeared to inject some confidence into the market, attracting buyers to the INR and lending support to its recovery. The RBI Governor Shaktikanta Das highlighted the rationale behind the decision, emphasizing a focus on balancing growth prospects and inflationary pressures.

This development marks a critical point for the Indian economy as it navigates global and domestic challenges. For more updates on the INR and India’s monetary policy, stay tuned.