The Reserve Bank of India (RBI) is maintaining the repo rate at 6.5% for the seventh time, according to RBI governor Shaktikanta Das. The central bank’s Monetary Policy Committee (MPC) has also emphasized liquidity management to control inflation. Discover more about this decision.
The RBI’s high-powered rate setting panel on Wednesday began its 3-day brainstorming on the next set of bi-monthly monetary policy amid expectation of continued pause on the short-term key lending rate as GDP growth is gaining momentum, and inflation manageable.
RBI’s Monetary Policy Committee (MPC) commented on Indian consumer prices, in a recent meeting of determining continuation of policy rate hike, as still “unacceptably, uncomfortably high” due to volatile tensions of geo-politics, global inflation and financial markets. With the panel focusing upon withdrawal of accommodation, complications could still be lingering, if current high inflation not kept in check of mandatory 4%, with 2% margin. Funds are risen to 50 basis points, and members speculated to take the repo rate back to pre-pandemic levels of 6.50%.
