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Reserve Bank of India (RBI) has decided to maintain the benchmark interest rate at 6.50% for the ninth consecutive meeting, reflecting ongoing concerns about persistent food inflation.
The Reserve Bank of India (RBI) has decided to maintain the benchmark interest rate at 6.50% for the ninth consecutive meeting, reflecting ongoing concerns about persistent food inflation. The Monetary Policy Committee (MPC), which includes three RBI members and three external members, voted with a majority of four in favor of this decision. The MPC also retained its stance of “withdrawal of accommodation,” emphasizing its commitment to controlling inflation and aiming for a target of 4%.
In June, inflation rose to 5.08%, primarily driven by food prices, which RBI Governor Shaktikanta Das described as “stubbornly” high. He stressed that without price stability, sustainable economic growth cannot be achieved, asserting that monetary policy must remain focused on disinflation. The RBI’s decision is expected to keep borrowing costs stable, which could encourage spending and investment in the economy.
