courtesy: india today
Reserve Bank of India governor Shantikanta Das on Thursday stated that the central bank has kept the repo rate unchanged at 6.5 per cent. The benchmark rate was last changed in February last year, when the institution increased it from 6.25 to 6.5 per cent, which was to contain inflation caused by the global developments. Previously, it was left stable in December 2023 meet.
After reaching its peak of 7.44 per cent in July 2023, the retail inflation has declined in the current financial year. However, it is still high and was at 5.69 per cent in December 2023, though within the Reserve Bank’s comfort zone of 4-6 per cent.
Experts across sectors were of view that the institution will not tinker with the repo rate, for the sixth time in a row, mainly due to concerns over inflation.
The government has mandated the central bank to ensure that the retail inflation stays at 4 per cent with a margin of 2 per cent on either side.
