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The decision to keep the repo rate at its current level of 6.5% was made by the Reserve Bank of India (RBI) on April 6, 2023, during its semi-annual meeting to discuss monetary policy. As a result, RBI to stop interest rate increases, large debt firms, growth stocks, small and mid-cap space companies, and particular industries like consumer durables and real estate will receive some relief in the short term.

On April 6, the Monetary Policy Committee agreed to keep same the repo rate at 6.5 percent, with a majority vote of 5 to 1. The committee's primary focus was on withdrawing accommodation, intending to ensure that inflation gradually aligns with the objective while continuing to promote growth.

Since May 2022, the Reserve Bank of India has increased the repo rate by a total of 250 basis points to lower inflation to its target of 4 percent (+/- 2 percent).

Others predicted that there would be a significant delay before any further rate hikes were implemented, while others expected that there would be one final rate hike of 25 basis points on April 6.

This is consistent with what we had anticipated, and it may even be the best-case scenario. This is good news for the markets. According to Divam Sharma, who is the founder of Green Portfolio PMS, the Reserve Bank of India (RBI) has been cautious while it evaluates the cumulative effect of rate hikes that have occurred over the course of the past year.