RBI keeps key lending rate unchanged at 6.5%, focus remains on tackling inflation
3 months, 3 weeks ago

RBI keeps key lending rate unchanged at 6.5%, focus remains on tackling inflation

India Today  

The Reserve Bank of India's Monetary Policy Committee has decided to maintain the status quo on key interest rates for the 11th consecutive time. Consequently, the standing deposit facility stands at 6.25%, and the marginal standing facility and the bank rate at 6.75%," announced RBI Governor Shaktikanta Das during the policy statement. "Tackling inflation is critical because high inflation reduces consumers' disposable income, adversely affecting private consumption, which is a key driver of real GDP growth," Das explained. LOWERS GDP GROWTH PROJECTION In light of recent economic developments, the RBI has revised its GDP growth target for the current financial year to 6.6%, down from earlier estimates. Suman Chowdhury, Executive Director & Chief Economist, Acuité Ratings, said, "RBI governor's statement for the latest MPC highlights the increased dilemma on growth-inflation balance, amidst sticky headline inflation and a slowdown in growth seen in Q2."

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