RBI keeps key lending rate unchanged at 6.5%, focus remains on tackling inflation

RBI keeps key lending rate unchanged at 6.5%, focus remains on tackling inflation
T
he Reserve Bank of India’s Monetary Policy Committee (MPC) has decided to keep the key lending rates unchanged as its focus remains on bringing inflation under control.
“The Monetary Policy Committee decided by a majority of 4-2 to keep the policy repo rate unchanged at 6.5%. Consequently, the standing deposit facility (SDF) stands at 6.25% and the marginal standing facility (MSF) and the bank rate at 6.75%,” said Das.
Das added that the MPC has also decided to continue with its neutral stance and to remain “unambiguously focused” on a durable alignment of inflation with the target.RBI
While Das said that the MPC took note of the growth slowdown in the second quarter, the members assessed the growth outlook to be resilient, adding that there is still a need for close monitoring.
However, at this juncture, the RBI’s MPC remains more concerned about inflation, which surged above the upper tolerance level of 6% in October, driven by a sharp uptick in food inflation.
According to the MPC’s assessment, food inflation is likely to retreat on from the fourth quarter of the ongoing financial year.RBI Prince William and Kate Middleton ‘will never professionally separate’ like Prince Harry and Meghan Markle