RBI Keeps Policy Rate Unchanged for Ninth Consecutive Time Amid Persistent Food Inflation

RBI Keeps Policy Rate Unchanged for Ninth Consecutive Time Amid Persistent Food Inflation

VoM News Desk | August 8, 2024 | 12:02 PM IST | India | Follow on Google News

RBI Keeps Policy Rate Unchanged for Ninth Consecutive Time Amid Persistent Food Inflation

RBI Keeps Policy Rate Unchanged for Ninth Consecutive Time Amid Persistent Food Inflation

MUMBAI, Aug 8: The Reserve Bank of India (RBI) announced on Thursday that it would maintain the policy rate unchanged for the ninth consecutive time, citing stubborn food inflation as the primary concern.

Key Highlights:

1. Rate Pause: The repo rate remains at 6.5%, unchanged since the pause in April last year.
2. Inflation Concerns: The Monetary Policy Committee (MPC) remains vigilant about elevated food inflation.
3. Growth Projection: The RBI keeps the growth forecast steady at 7.2% for the current financial year.

The decision to keep the repo rate unchanged follows six consecutive rate hikes totaling 250 basis points since May 2022. RBI Governor Shaktikanta Das, announcing the third bi-monthly monetary policy for the current fiscal year, emphasized the need for vigilance concerning inflationary pressures from the food sector.

The RBI’s cautious approach underscores the challenges of balancing growth with inflation control in a complex economic environment. The unchanged growth projection indicates confidence in the economic recovery, albeit with a close watch on inflation trends.

VoM News Desk

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