RBI Extends Rate Pause As Food Price Pressure Lingers
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The Reserve Bank of India (RBI) has decided to keep interest rates on hold for the seventh successive meeting. RBI governor Shaktikanta Das stated that while growth has surpassed projections, food price uncertainties continue to weigh on the inflation trajectory. Inflation has come down significantly but remains above the 4% target, with food inflation exhibiting considerable volatility. The repo rate, which was cut to 4% in March 2022, remained unchanged until May 2022 when it was hiked to 4.4%. It has since been hiked five times to reach 6.5% in February 2023. The MPC decided by a 5 to 1 majority to keep the policy repo rate unchanged at 6.5%. The RBI governor projected growth at 7.5% for FY25 and inflation at 4.5% for FY25, indicating that rate cuts may be delayed.

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https://timesofindia.indiatimes.com/city/mumbai/rbi-extends-rate-pause-as-food-price-pressure-lingers/articleshow/109076645.cms