The Reserve Bank of India (RBI) has announced that it will maintain its key lending rate unchanged at 6.5% for the third consecutive time. This decision comes as the RBI closely monitors inflation within the country. RBI Governor Shaktikanta Das stated that the Monetary Policy Committee (MPC) unanimously agreed to keep the repo rate steady.
Das highlighted the significant progress India has made in controlling inflation, stating that the country is uniquely positioned to benefit from the ongoing transformation in the global economy. The MPC remains committed to aligning inflation with its target level and will continue to closely monitor the situation.
While the global economy continues to face challenges such as inflation, geopolitical uncertainty, and extreme weather, India is expected to withstand these external headwinds in terms of economic growth. Governor Das emphasized that Indian banks are currently the healthiest they have been in over a decade, and the financial sector remains stable and resilient.
The RBI remains steadfast in its commitment to safeguard the financial system from emerging challenges and potential risks. With the upcoming festival season, private consumption and investment activities are expected to receive a boost.
The decision to maintain the key lending rate unchanged reflects the RBI’s confidence in the Indian economy’s progress and its ability to handle both domestic and global challenges. By keeping a close eye on inflation and ensuring the stability of the financial sector, the RBI aims to support sustainable economic growth.
In summary, the RBI has opted to maintain the key lending rate unchanged as the Indian economy continues to make strides in controlling inflation. With a focus on stability and resilience, the RBI remains committed to safeguarding the financial system and supporting growth in the country.
