RBI MPC Meeting: Reserve Bank of India keeps repo rate unchanged at 6.5%

The Reserve Bank of India on Thursday decided to keep the policy rate unchanged for the third time in a row as it maintains heightened vigil on inflation.

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

Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) unanimously decided to keep the rate unchanged at 6.5 percent.

He said the MPC will remain watchful of the inflation and remains resolute in its commitment to align inflation to the targeted level.

While keeping the interest rate intact, Das said headline inflation still remains above RBI's target of 4 percent.

The MPC meeting took place against the backdrop of consumer price-based (CPI) inflation on some food items like tomato, wheat, and rice that have witnessed surges in price in the last few weeks. The government has mandated RBI to ensure CPI inflation at 4 percent with a margin of 2 percent on either side