The Reserve Bank of India (RBI) has decided to maintain the current status by keeping the key policy rate unchanged at 6.5% for the sixth consecutive time.

Mumbai, February 8 (press ki taquat bureau):
In a move to closely monitor inflation, the Reserve Bank of India has chosen to maintain the policy rate unchanged for the sixth consecutive time. This decision comes after a series of rate hikes totaling 250 basis points since May 2022, with the rate increase cycle being put on hold in April of the previous year.In his announcement of the bi-monthly monetary policy, RBI Governor Shaktikanta Das stated that the Monetary Policy Committee (MPC) has made the decision to maintain the repo rate at a steady 6.5 percent. This decision reflects the committee’s careful consideration of the current economic conditions and the need for stability in the financial markets.Governor Das emphasized the importance of monitoring food inflation to ensure that the progress made in controlling it is not lost. The MPC will remain vigilant in its efforts to safeguard the gains achieved in managing food prices, as this plays a crucial role in maintaining overall price stability and ensuring the well-being of the economy. By keeping the repo rate unchanged, the RBI aims to provide a consistent and predictable monetary policy environment that supports economic growth while also managing inflationary pressures. This decision reflects the committee’s commitment to maintaining a balanced approach towards monetary policy, taking into account both the need for stimulus and the importance of price stability.Following the recent presentation of the Interim Budget 2024-25, this bi-monthly policy marks the first step in implementing the government’s directives. Last week, the government entrusted the Reserve Bank of India (RBI) with the responsibility of maintaining Consumer Price-based Inflation (CPI) at 4 percent, allowing for a 2 percent margin on both sides.In light of the Interim Budget 2024-25, this bi-monthly policy represents the initial response from the government. The RBI has been given a clear mandate to ensure that the Consumer Price-based Inflation (CPI) remains within the range of 2 percent below and 2 percent above the target of 4 percent. This policy aims to strike a balance between controlling inflation and promoting economic stability.