RBI keeps policy rate unchanged : RBI keeps policy rate unchanged for the third consecutive time amid West Asia crisis. As expected, the Reserve Bank of India (RBI) on Wednesday kept key interest rates unchanged for the third consecutive time. The bank took into account the impact of energy price uncertainty and supply disruptions due to the ongoing crisis in West Asia.
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Announcing the third bi-monthly monetary policy for the current financial year, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) unanimously decided to maintain the short-term lending rate, or repo rate, at 5.25 percent with a neutral stance. This pause in interest rates comes as headline retail inflation, based on the Consumer Price Index (CPI), reached 4.38 percent in June, exceeding the RBI’s medium-term target of 4 percent. However, the RBI slightly raised its growth forecast for the current financial year to 6.7 percent, while lowering its inflation forecast to 5 percent.