RBI Holds Steady at 6.5% to Monitor Inflation and Support Growth

The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 6.5% for the ninth consecutive time. This decision allows the central bank to continue focusing on moderating inflation and fostering sustained economic growth. Industry experts appreciate the cautious approach, noting its benefits for various sectors including real estate and lending.

The Reserve Bank's decision to keep the interest rate unchanged will provide an elbow room to continue focusing on moderating inflation for resilient and sustained economic growth, according to industry experts.

For the ninth consecutive time, the central bank decided to maintain the status quo, keeping the benchmark repo rate at 6.5%. Commenting on the decision, Bank of Baroda's Chief Economist, Madan Sabnavis, stated that the RBI's focus remains on headline inflation, particularly food inflation.

Experts noted that while inflation might decrease in Q2, it is expected to rise again in Q3, indicating potential delays in any rate cut decisions. The RBI also emphasized that economic growth remains a priority alongside stable inflation.

(With inputs from agencies.)