The Reserve Bank of India maintained its policy rate for the fourth time on Friday to monitor inflation. After six consecutive rate hikes totaling 250 basis points since May 2022, the cycle paused in April.
RBI Governor Shaktikanta Das announced the bi-monthly monetary policy, saying the MPC unanimously kept the rate at 6.5%.
He said the MPC will monitor inflation and remain committed to achieving its target. Das maintained the interest rate but noted headline inflation is over RBI’s 4% objective.
Tomato, wheat, and rice prices have risen in recent weeks, prompting the MPC meeting. The government has ordered RBI to keep CPI inflation at 4% with a 2% buffer.
Conclusion:-
After six consecutive rate hikes, the RBI has kept its policy rate at 6.5% for the fourth time since May 2022. The MPC unanimously held the rate steady, committing to monitor inflation and bring it back to target. The RBI’s bi-monthly monetary policy was issued by Governor Shaktikanta Das, who noted that headline inflation continues over 4%. The MPC met amid CPI inflation on tomato, wheat, and rice.
