GG News Bureau
Mumbai, 8th Dec. The Reserve Bank of India (RBI) on Friday decided to maintain the policy rate at 6.5% for the fifth time in a row, as it closely monitors inflation. This decision comes after a series of six consecutive rate hikes, totaling 250 basis points since May 2022.
RBI Governor Shaktikanta Das, while announcing the bi-monthly monetary policy, stated that the Monetary Policy Committee (MPC) unanimously agreed to keep the repo rate unchanged at 6.5%. He emphasized that the MPC will continue to focus on reducing inflation.
The growth projection for the current financial year has been revised to 7% from the previous estimate of 6.5%, according to Das. The central bank also predicts that the Consumer Price Index (CPI) based retail inflation will be around 5.4% for the current fiscal year.
The MPC meeting took place amidst a backdrop of inflation decreasing to 4.87% in October, with the November figures expected to be released next week. The government has instructed the RBI to maintain CPI inflation at 4% with a margin of 2% on either side.
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