The Reserve Bank of India (RBI) has decided to maintain its key lending rate at 6.5% for the seventh consecutive time, indicating that loan interest rates are likely to remain stable. The decision was reached by a majority vote of 5:1 at the bi-monthly Monetary Policy Committee (MPC) meeting, as announced by RBI Governor Shaktikanta Das.
Governor Das also highlighted that inflation is approaching target levels. Core inflation has steadily decreased over the past nine months, while the fuel component has remained in deflation for six consecutive months.
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RBI keeps repo rate unchanged
While acknowledging ongoing uncertainties in food prices, Governor Das emphasized the MPC’s vigilance regarding potential inflationary pressures that could disrupt disinflation efforts. He noted positive outlooks for agricultural and rural activities. RBI on Friday kept its key lending rate unchanged at 6.5% for the seventh consecutive time.
Governor Das underscored that the policy’s focus remains on inflation, given robust growth prospects. He also mentioned the resilience of the global economy and anticipated faster growth in global trade in 2024. In advanced economies, services inflation has remained stubborn, and there has been volatility in equity markets, bond yields, and the dollar, according to Governor Das.
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