RBI Sticks To 6.5% Key Lending Rate For 8th Consecutive Time, Fighting Inflation Remains Focus

New Delhi: The Monetary Policy Committee (MPC), chaired by Governor Shaktikanta Das has been convening in Mumbai this week to discuss key policy decisions in a challenging economic landscape. RBI Governor announced that the MPC has decided to keep the policy repo rate steady at 6.5 per cent. The MPC last changed the rates in February 2023. The Reserve Bank of India has kept the key lending rate unchanged for the eighth time in a row, allowing room to focus on reducing inflation while the economy continues to grow robustly.

“The world has gone through one crisis after another in recent years, but the Indian economy exhibits strong fundamentals. We need to remain vigilant in an uncertain global environment,” RBI Governor Shaktikanta Das said during a press conference.

The central bank’s stance on the benchmark interest has drawn significant attention. This was especially due to ongoing inflation particularly in the food sector. The RBI’s repo rate, which is held at 6.5 per cent since the last increase is expected to remain unchanged for the eighth consecutive bi-monthly policy review. Mr. Das said that four out of the six MPC members voted to keep the repo rate unchanged.