RBI maintains pause for third time in a row, keeps repo rate unchanged at 6.5%

Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday said that Monetary Policy Committee has unanimously decided to keep the repo rate unchanged at 6.5 per cent. The repo rate has been kept unchanged for third time in a row as RBI maintains heightened vigil on inflation.

#WATCH | RBI Governor Shaktikanta Das says "Monetary Policy Committee decided unanimously to keep the Repo Rate unchanged at 6.50%" pic.twitter.com/138ppkCarB

— ANI (@ANI) August 10, 2023

The rate increase cycle was paused in April after six consecutive rate hikes aggregating to 250 basis points since May 2022. Das said that the economy has continued to grow at a reasonable pace becoming the fifth largest in the world, contributing around 15 per cent to global growth.

#WATCH | RBI Governor Shaktikanta Das says "Our economy has continued to grow at a reasonable pace becoming the 5th largest economy in the world, contributing around 15% to global growth" pic.twitter.com/QKK2fJHsdu

— ANI (@ANI) August 10, 2023

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He said the MPC will remain watchful of the inflation and remains resolute to 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 per cent. 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 surge in price in the last few weeks. The government has mandated RBI to ensure CPI inflation at 4 per cent with a margin of 2 per cent on either side. With inputs from agencies