Blitz Bureau
NEW DELHI: The Reserve Bank of India (RBI) on August 8 kept the key policy repo rate unchanged at 6.5 per cent for a ninth consecutive meeting as it continued to maintain a balance between accelerating economic growth and keeping inflation under control.
RBI Governor Shaktikanta Das said the Monetary Policy Committee has decided by a 4:2 majority to keep the repo rate unchanged as inflation has risen above 5 per cent and is still above the targeted level of 4 per cent.
He said that inflation after having eased to 4.8 per cent in April and May has risen to 5.1 per cent in June on the back of “stubbornly” high food prices. “Without price stability, growth cannot be sustained so we have decided to continue with the disinflationary stance,” Das explained.
However, the RBI Governor said that the country’s inflation rate is expected to come down in the third quarter of the current financial year.
He also said that domestic growth is resilient, supported by steady urban consumption. The MPC determined that it is crucial for monetary policy to remain consistent while closely monitoring inflation. The committee emphasized maintaining a primary focus on inflation to support sustained economic growth.
Das also said there is a convergence between the RBI monetary policy decision and market expectations.
