MUMBAI, June 7: RBI Maintains Policy Rate, Keeps Vigil on Inflation
The Reserve Bank of India (RBI) opted to uphold the policy rate unchanged for the eighth consecutive time, signaling a commitment to closely monitor inflationary pressures.
After a series of six consecutive rate hikes, totaling 250 basis points since May 2022, the rate increase cycle was paused in April last year.
Announcing the second bi-monthly monetary policy for the current fiscal year, RBI Governor Shaktikanta Das affirmed that the Monetary Policy Committee (MPC) has resolved to maintain the repo rate at 6.5 per cent.
Das emphasized the MPC’s vigilance regarding elevated food inflation, particularly amidst expectations of a normal monsoon.
Additionally, the RBI revised the growth projection for the current fiscal year to 7.2 per cent, up from the earlier estimate of 7 per cent.
With the government mandating the RBI to ensure CPI inflation at 4 per cent with a margin of 2 per cent on either side, the central bank remains steadfast in its commitment to achieve price stability
