The Reserve Bank of India would retain the current policy rate for the eighth consecutive time Friday and repeated its stand to keep a close watch on the emerging inflationary level.
It had paused the rate increase cycle in April last year after six successive rate hikes aggregating 250 basis points since May 2022.
While announcing the second bi-monthly monetary policy for this financial year, RBI Governor Shaktikanta Das said that the Monetary Policy Committee has decided to keep the repo rate steady at 6.5 percent.
The Governor said that the MPC would continue to monitor high food inflation with some expectations of a normal monsoon.
Besides, the RBI has raised its growth forecast for the financial year from 7 percent earlier to 7.2 percent.
The mandate with RBI, as assigned by the government, is to keep the CPI inflation at 4 percent with a leeway of 2 percent on either side.
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