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The Monetary Policy Committee of the Reserve Bank of India has unanimously determined to maintain repo rate unchanged at 6.5% after having raised it at every of six earlier conferences, as dangers to progress have risen following latest world monetary turmoil.
RBI Governor Shaktikanta Das mentioned the central financial institution is able to act in opposition to inflation, and regardless of the choice to pause a rate hike, the MPC wouldn’t hesitate to take any motion in future.
The RBI’s present tightening cycle has seen it elevate the repo rate by a complete of 250 bps since May final 12 months.
While protecting the curiosity rate intact, Mr. Das mentioned core inflation stays sticky. Core inflation typically refers to inflation in manufactured items.
Retail inflation in February stood at 6.44% in comparison with 6.52% within the earlier month. MPC takes into consideration retail inflation numbers for setting the rates of interest.
However, the RBI expects inflation in 2023-24 to average to five.2% whereas actual GDP progress for the fiscal is projected at 6.5%.
The MPC has three members from the central financial institution and three exterior members.
(With inputs from companies)
