RBI retains repo rate at 6.5% for fourth time in row
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Mumbai: The Reserve Bank of India’s Monetary Policy Committee (MPC) on Friday unanimously decided to keep the policy repo rate unchanged at 6.5 percent for the fourth time in a row as it maintains a tight vigil on inflation.
The rate increase cycle was paused in April after six consecutive rate hikes aggregating to 250 basis points since May 2022.
Announcing the bi-monthly monetary policy on Friday, RBI Governor Shaktikanta Das said the MPC will remain watchful of the inflation and remains resolute in its commitment to align inflation to the targeted level.
According to him, the growth projection has been retained at 6.5 percent for the current financial year with risks evenly balanced.
The MPC meeting took place against the backdrop of Consumer Price-based Inflation (CPI) touching 6.83 percent in August.
The September print of inflation is expected next week.
The government has mandated the RBI to keep CPI inflation at 4 percent with a margin of 2 percent on either side.
With inputs from PTI