MUMBAI, June 7: The Reserve Bank of India (RBI) announced on Friday that it will keep the policy rate unchanged for the eighth consecutive time, continuing its vigilant stance on inflation. The rate hike cycle was paused in April last year after six consecutive increases totaling 250 basis points since May 2022.
In the announcement of the second bi-monthly monetary policy for the current financial year, RBI Governor Shaktikanta Das stated that the Monetary Policy Committee (MPC) has decided to maintain the repo rate at 6.5 percent.
Governor Das emphasized that the MPC will stay alert to elevated food inflation despite the anticipation of a normal monsoon. The RBI has revised its growth projection for the current financial year from 7 percent to 7.2 percent.
The government has tasked the RBI with maintaining CPI inflation at 4 percent, with a tolerance margin of 2 percent on either side.
