RBI Holds Rates Steady Amid Robust Growth, Focus on Inflation

The Reserve Bank of India (RBI) maintained its key interest rates at 6.50% amid strong economic growth to manage inflation. The decision, just before Narendra Modi's third term as PM, hints at cautious maneuvering in economic reforms. Divided views were noted in the policy committee regarding a stance shift.

In a widely anticipated move, the Reserve Bank of India (RBI) on Friday kept its key interest rates unchanged at 6.50%, focusing on managing inflation amid resilient economic growth.

The Monetary Policy Committee, comprising three RBI members and three external members, maintained the repo rate for an eighth consecutive meeting. Governor Shaktikanta Das reaffirmed their vigilance against inflation risks, especially from food prices.

Notably, the decision precedes Prime Minister Narendra Modi's third term inauguration, albeit with a slimmer majority in the coalition government, which may delay extensive economic reforms. The RBI's cautious approach reflects its commitment to balancing growth and inflation.

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