RBI leaves repo rate unchanged

Mumbai: The RBI on Wednesday kept the key policy repo rate unchanged at 6.5 percent for the tenth consecutive meeting as it continued to maintain a balance between accelerating economic growth and keeping inflation under control.

However, the central bank changed its stance to ‘neutral’ that may lead to a cut in the forthcoming policies.

RBI maintained status quo despite the US Federal Reserve lowering the benchmark rates by 50 basis points last month. The central banks of some developed nations have also reduced their interest rates.

The RBI has maintained status quo on benchmark interest rate since February 2023.

RBI Governor Shaktikanta Das said RBI will remain watchful of elevated food inflation even when India GDP growth remains strong.