RBI to Maintain Status Quo on Interest Rates Amid Food Inflation Woes

The Reserve Bank of India's rate-setting panel has begun deliberations on the next bi-monthly monetary policy, with expectations of no change in the benchmark interest rate. Experts predict that the Monetary Policy Committee will keep the repo rate at 6.5%, amid rising food prices and steady economic growth.

The Reserve Bank of India's rate-setting panel initiated its three-day deliberations on the upcoming bi-monthly monetary policy amidst expectations of holding the benchmark interest rate steady.

The six-member Monetary Policy Committee (MPC), led by Governor Shaktikanta Das, is expected to keep the repo rate unchanged at 6.5% due to concerns over inflation and stable economic growth.

Retail inflation surged to a four-month high of 5.08% in June, driven by increased food prices. Despite this, experts believe the MPC will refrain from changing the policy rate, maintaining a cautious stance due to rising domestic input prices and global economic uncertainties.

(With inputs from agencies.)