FOCUS_KEYWORD: RBI Rate Decision
SEO_TITLE: RBI Holds Key Rates, Cautious on Inflation
SEO_DESCRIPTION: India’s central bank announces its latest RBI rate decision, keeping benchmark rates unchanged. The move reflects ongoing concerns about inflation amidst global uncertainties.
TAGS: Business, economy, finance, markets, banking, stock markets, startups, reforms, RBI, GDP, inflation, interest rates, monetary policy, central bank, India, economic growth, repo rate, financial stability
CONTENT:
NEW DELHI — The Reserve Bank of India (RBI) on Friday maintained its key interest rates for the sixth consecutive policy meeting, signaling a continued focus on withdrawing monetary accommodation to rein in inflation. The Monetary Policy Committee (MPC) voted unanimously to keep the benchmark repo rate at 6.50%.
This decision extends a pause initiated after a cumulative 250 basis points hike between May 2022 and February 2023. The central bank highlighted persistent inflationary pressures, particularly in food components, despite recent cooling in headline figures.
The RBI projected Consumer Price Index (CPI) inflation at 5.4% for the current fiscal year, moderating slightly from previous estimates, and anticipated real GDP growth at 7.0%. Governor Shaktikanta Das emphasized the MPC’s commitment to aligning inflation with the 4% target sustainably.
The “withdrawal of accommodation” stance was retained by a 5-1 majority, indicating that the central bank remains prepared to act if inflation risks resurface. Global geopolitical tensions and volatile commodity prices were cited as key external uncertainties influencing the outlook.
“The RBI’s wait-and-watch approach is prudent, balancing robust growth impulses with the imperative of achieving price stability,” remarked a senior economist at a leading private sector bank.
The central bank’s cautious stance suggests that while a rate cut is not imminent, future actions will remain data-dependent. It underscores close monitoring of domestic food inflation dynamics and global economic developments.
