The Reserve Bank of India has left the benchmark repo rate unchanged at 6.5% as inflationary pressures ease. However, the bank warned some risks remain.
Ednews informs via foreign media that India's central bank on Thursday kept its key lending rat unchanged at 6.5% citing easing inflationary pressures.
Reserve Bank of India (RBI) Governor Shaktikanta Das however warned monetary conditions will remain tight for some time.
"The Monetary Policy Committee decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target while supporting growth," Das said.
"Headline inflation still remains above the target, and being within the tolerance band is not enough. Our goal is to achieve the target of 4.0 percent going forward," he added.
Inflation in India peaked at 7.79% in April of 2022 — well above the MPC's target range of two to six percent — before slowly easing to 4.7% in April of 2023. The sudden rise in inflation was mainly due to Russia's invasion of Ukraine and the resultant disruption in global trade and rising international fuel prices.