RBI Maintains Policy Rate Amidst Persistent Food Inflation

The Reserve Bank of India has opted to keep its policy rate unchanged for the ninth time in a row due to persistent food inflation. RBI Governor Shaktikanta Das announced that the Monetary Policy Committee decided to maintain the repo rate at 6.5%. The growth projection remains at 7.2% for the year.

The Reserve Bank of India (RBI) on Thursday decided to keep the policy rate unchanged for the ninth consecutive time, highlighting the issue of stubborn food inflation.

The RBI had paused its rate increase cycle in April last year after six straight rate hikes, totaling 250 basis points since May 2022.

In the third bi-monthly monetary policy announcement for the current financial year, RBI Governor Shaktikanta Das stated that the Monetary Policy Committee (MPC) has chosen to leave the repo rate steady at 6.5%. He also noted that the MPC will closely monitor elevated food inflation levels.

The RBI has maintained its growth projection at 7.2% for the ongoing financial year.

(With inputs from agencies.)