FOCUS_KEYWORD: RBI Monetary Policy
SEO_TITLE: RBI Holds Rates Amid Inflation Concerns
SEO_DESCRIPTION: India’s central bank maintains key interest rates. Discover how the RBI’s latest monetary policy decision impacts inflation, growth, and the economy.
TAGS: RBI, Monetary Policy, Interest Rates, Inflation, Indian Economy, Banking, Financial Markets, Economy, GDP, Central Bank, Reserve Bank of India, Repo Rate, Growth Outlook, India, Monetary Policy Committee, Liquidity, Economic Growth
CONTENT:
MUMBAI — The Reserve Bank of India’s Monetary Policy Committee (MPC) today voted unanimously to keep the benchmark repo rate unchanged at 6.50%. This decision marks the seventh consecutive pause by the central bank.
The MPC cited an ongoing commitment to aligning inflation with the 4% target while supporting economic growth. While retail inflation has moderated, uncertainties persist, particularly regarding food prices.
RBI Governor Shaktikanta Das highlighted that domestic economic activity remains robust, driven by strong investment and consumption demand. India’s GDP growth projection for the current fiscal year was maintained at 7%.
The RBI also revised its consumer price index (CPI) inflation forecast for FY25 to 4.5%, down from an earlier projection. Supply-side pressures, especially volatile food prices, remain a key monitoring point.
Liquidity conditions will continue to be managed actively to ensure financial stability. The MPC reiterated its “withdrawal of accommodation” stance, signaling a readiness to act if inflation risks re-emerge.
Market analysts broadly anticipated the rate hold, with attention now turning to future guidance. “The RBI’s cautious stance reflects a balanced approach, prioritizing inflation while acknowledging growth momentum,” stated a leading economist.
The unchanged rate provides stability for borrowers and depositors alike for the immediate term. However, future policy actions will hinge heavily on evolving inflation dynamics and global economic developments.
