The Reserve Bank of India Keeps the Benchmark Interest Rate Unchanged for the Ninth Consecutive Time, Keeping an Eye on Inflation Pressures
Publication Time:2024-08-08 13:06:06
The Reserve Bank of India (RBI) decided not to adjust its benchmark repo rate during its recent policy meeting, marking the ninth consecutive time it has maintained the rate at 6.5%. This decision underscores the bank's careful consideration of the current inflation landscape. The Monetary Policy Committee, consisting of six members, unanimously agreed to keep the rates unchanged, in line with the expectations of the majority of the 43 economists surveyed. It is noteworthy that India's inflation rate surged to 5.08% in June, markedly higher than the central bank's target of 4%, particularly due to rising food prices. This development complicates the timing for potential interest rate reductions. RBI Governor Shaktikanta Das has stressed the importance of avoiding hasty actions when contemplating rate cuts. Although some economic analysts anticipate that the RBI might lower rates in the final quarter of the year, the decision-makers seem to favor waiting until the Federal Reserve acts before making their own policy adjustments.
policy meeting
Monetary Policy
Inflation Risk
Benchmark Interest Rate
Reserve Bank of India