Policy Rate Unchanged : RBI
The Reserve Bank of India (RBI) decided to keep the policy rate unchanged at 6.5% for the eighth consecutive time.
- The Monetary Policy Committee (MPC) will maintain a tight control on inflation and remain watchful of elevated food inflation amid the expectation of a normal monsoon.
- The rate increase cycle was paused in April last year after six consecutive rate hikes, totalling 250 basis points since May 2022.
- The RBI raised the growth projection to 7.2% from an earlier estimate of 7% for the current financial year.
- Inflation targeting in India is a monetary policy framework adopted in 2016, where the Central Government, in consultation with the RBI, sets a target inflation rate once in five years.
