THE JHARKHAND STORY DESK
Mumbai, June 7: The Reserve Bank of India decided on Friday to maintain the policy rate unchanged for the eighth consecutive time, affirming that it will closely monitor inflation.
In April of last year, the cycle of rate hikes was paused after six consecutive increases, which collectively amounted to 250 basis points since May 2022.
RBI Governor Shaktikanta Das, while announcing the second bi-monthly monetary policy for the current financial year, stated that the Monetary Policy Committee (MPC) has chosen to maintain the repo rate at 6.5 per cent.
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He mentioned that the MPC will stay vigilant regarding high food inflation, given the anticipation of a normal monsoon.
The RBI increased the growth projection for the current financial year to 7.2 per cent, up from the previous estimate of 7 per cent.
The government has directed the RBI to aim for CPI inflation at 4 per cent, with a tolerance band of 2 per cent on both sides.
