RBI Holds Repo Rate at 6.5% for 9th Time, Citing Food Inflation
Aug 08, 2024 10:17
The Reserve Bank of India (RBI) has maintained the repo rate at 6.5% for the ninth consecutive time, citing concerns over elevated food inflation. The MPC will continue to monitor the situation.
Illustration: Uttam Ghosh/Rediff.com
Mumbai, Aug 8 (PTI) The Reserve Bank of India on Thursday decided to keep the policy rate unchanged for the ninth time in a row, saying food inflation remains stubborn.
The rate increase cycle was paused in April last year after six consecutive rate hikes, aggregating to 250 basis points since May 2022.
Announcing the third bi-monthly monetary policy for the current financial year, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 per cent.
He said MPC will remain watchful of elevated food inflation.
The RBI keeps the growth projection unchanged at 7.2 per cent for the current financial year.
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