Reserve Bank of India keep key interest rate unchanged for third time in row

Mumbai, August  10

Reserve Bank of India has kept the key interest rate unchanged for third time in a row. Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) unanimously decided to keep the repo rate unchanged at 6.5 percent.

He said, the MPC will remain watchful of the inflation and remains resolute to its commitment to align inflation to the targeted level. While keeping the interest rate intact, Mr Das said headline inflation still remains above RBI’s target of 4 percent. The government has mandated RBI to ensure CPI inflation at 4 percent with a margin of 2 percent on either side.

The rate increase cycle was paused in April after six consecutive rate hikes aggregating to 250 basis points since May 2022.