RBI keeps repo rate unchanged at 6.5%

The Reserve Bank of India (RBI) on Thursday (August 8) decided to keep the policy rate unchanged at 6.5 per cent for the ninth time in a row, saying food inflation remains stubborn.

The rate increase cycle was paused in April last year after six consecutive rate hikes, aggregating to 250 basis points since May 2022.

Announcing the third bi-monthly monetary policy for the current financial year, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 per cent.

He said MPC will remain watchful of elevated food inflation.

The RBI keeps the growth projection unchanged at 7.2 per cent for the current financial year.

Das, however, said that inflation is broadly on declining trajectory.