FOCUS_KEYWORD: RBI Monetary Policy
SEO_TITLE: RBI Pauses Rates, Signals Caution on Inflation
SEO_DESCRIPTION: India’s central bank kept key rates unchanged in its latest RBI Monetary Policy review. Persistent inflation and global uncertainties drove the decision.
TAGS: business, economy, finance, markets, banking, stock markets, RBI, monetary policy, inflation, interest rates, economic growth, central bank, bond markets, financial stability, GDP, reforms, rupee, debt
CONTENT:
MUMBAI – The Reserve Bank of India (RBI) on Thursday announced its decision to keep the benchmark repo rate unchanged at 6.50% for the seventh consecutive monetary policy review. This move reflects the central bank’s cautious stance amid persistent inflation concerns and global economic uncertainties.
The six-member Monetary Policy Committee (MPC) voted unanimously to maintain the rates, prioritizing the withdrawal of accommodation to ensure inflation aligns with the 4% target. Consumer Price Index (CPI) inflation remained elevated at 5.09% in February, still above the medium-term target.
RBI Governor Shaktikanta Das highlighted geopolitical tensions and crude oil price volatility as significant risks to the inflation outlook. He emphasized the central bank’s commitment to anchoring inflationary expectations. The RBI maintained its FY25 GDP growth forecast at 7%.
The decision was largely anticipated by market analysts, who had factored in a pause given the current economic landscape. “The RBI’s continued vigilance against inflation signals a data-dependent approach, keeping future rate cuts off the immediate table,” noted one financial analyst.
Despite strong domestic growth indicators, the RBI emphasized the need for sustained efforts to bring inflation within the desired band. The central bank will continue to monitor evolving economic conditions closely before considering any policy shifts.
