MUMBAI (Reuters) – India’s monetary policy committee held the key repo rate unchanged for a seventh straight policy meeting on Friday as it awaited a sustained fall in inflation towards its 4% target, with economic growth also remaining robust.
The Reserve Bank of India kept the main lending rate unchanged at 6.5%, in line with expectations. The repo rate was raised by a total of 250 basis points between May 2022 and February 2023.
Robust growth provides space for monetary policy to remain focused on bringing inflation down to its 4% target, RBI Governor Shaktikanta Das said in his statement.
Monetary policy must remain actively disinflationary at this stage, Das said.
Five out of six members voted in favour of the rate decision while the monetary policy stance of ‘withdrawal of accommodation’ was retained with a majority of five votes.
(Reporting by Swati Bhat and Sudipto Ganguly; Editing by Savio D’Souza)
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