RBI holds repo rate at 6.5 per cent for 7th consecutive time

RBI Governor Shaktikanta Das with deputy governors at the RBI headquarters on Friday. Pic/PTI

The Reserve Bank of India on Friday kept the benchmark interest rates unchanged at 6.5 per cent for the seventh time in a row, citing concerns over food inflation in view of IMD's prediction of above-normal maximum temperatures during April to June.

As RBI has held key policy rates steady, the EMIs on home and auto loans are likely to remain stable for some more time. The central bank has kept interest rates unchanged since February 2023.

While unveiling the first bi-monthly monetary policy for the current financial year, RBI has retained its growth and inflation forecast for the current fiscal at 7 per cent and 4.5 per cent respectively.

"After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, it (MPC) decided by a 5 to 1 majority to keep the policy repo rate unchanged at 6.50 per cent," RBI Governor Shaktikanta Das said.

He further said that the six-member MPC would remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.

Decision to ensure price stability: Experts

The Reserve Bank's monetary policy decision of keeping the key interest rate unchanged and focus on moderating inflation shows a resolve on the part of the central bank to ensure price stability and sustained economic growth, experts opined on Friday. The Reserve Bank kept the benchmark interest rates unchanged at 6.5 per cent for the seventh time in a row, citing concerns over food inflation in view of IMD's prediction of above-normal maximum temperatures from April to June. As the central bank held key policy rates steady, the EMIs on home and auto loans are likely to remain stable for some more time. The RBI has kept interest rates unchanged since February 2023.

8 per cent projection for India not ours: IMF

The recent remarks of Krishnamurthy Subramanian, Executive Director at the International Monetary Fund, about India's growth figures does not represent the views of the IMF and were in his role as India's representative at the global body, the IMF has said. "The views conveyed ...by Mr. Subramanian were in his role as India's representative at the IMF," Julie Kozack, IMF spokesperson, told reporters here on Thursday. She was responding to a question on recent remarks by Subramanian, in which he projected a growth rate of 8 per cent for India, which is different from the last growth rate projections by the IMF.

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