Business

RBI Keeps Repo Rate At 6.5%

The Reserve Bank of India decided on Friday to hold the policy rate unchanged for the fourth time in a row as it keeps a close eye on inflation.

After six consecutive rate hikes totaling 250 basis points since May 2022, the rate increase cycle was put on hold in April.

On Friday, RBI Governor Shaktikanta Das announced the bi-monthly monetary policy, saying the Monetary Policy Committee (MPC) unanimously opted to hold the repo rate steady at 6.5 percent.

RBI Governor stated that the MPC would continue to monitor inflation and is committed to keeping inflation at the targeted level.

According to Shaktikanta Das, the current fiscal year’s growth target remains at 6.5 percent with risks evenly balanced.

The MPC meeting was held against the backdrop of Consumer Price-based Inflation (CPI) reaching 6.83 percent in August. The September inflation report is due next week.

The government has directed the RBI to manage CPI inflation at 4 percent with a 2 percent margin on either side.

Also read: Markets Rise Ahead Of RBI’s Assessment Of Its Monetary Policy

Spriha Rai

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