The Reserve Bank of India (RBI) announced its decision on key rates following the conclusion of its three-day Monetary Policy Committee (MPC) meeting.
RBI Governor Shaktikanta Das on Thursday said that MPC has decided to keep the policy repo rate unchanged at 6.5 per cent.
The RBI increased the repo rate by 250 basis points to 6.5 per cent between May 2022 and February 2023.
In April 2023, the MPC decided to hit the pause button on rate hikes. RBI Governor Shaktikanta Das emphasised that it was a pause, not a pivot while retaining the possibility of further tightening.
The decision to press the pause button taken unanimously by the rate-setting body. This has three external members and three members from within the RBI.
In April, the MPC had also decided, by a five-to-one majority, to remain focused on withdrawing accommodation. This keeps to ensure that inflation progressively aligns with the target while supporting growth.