 announced its decision to maintain the policy rate unchanged for the sixth consecutive time, reaffirming its commitment to closely monitor inflation.){kind=link}
On Thursday, the Reserve Bank of India (RBI) announced its decision to maintain the policy rate unchanged for the sixth consecutive time, reaffirming its commitment to closely monitor inflation.
The cycle of rate hikes, which commenced in May 2022 and saw six consecutive increases totaling 250 basis points, was halted in April last year.
RBI Governor Shaktikanta Das, during the announcement of the bi-monthly monetary policy on Thursday, stated that the Monetary Policy Committee (MPC) had opted to keep the repo rate steady at 6.5 percent.
He emphasized the MPC’s continued vigilance over food inflation to ensure that any progress made is not eroded.
This marks the first bi-monthly policy update following the presentation of the Interim Budget 2024-25 last week.
As of December, Consumer Price Index (CPI)-based inflation stood at 5.69 percent.
The government has tasked the RBI with maintaining CPI inflation at 4 percent with a margin of 2 percent on either side.