RBI Holds Steady on Interest Rates Amid Stubborn Inflation

The Reserve Bank of India maintained its interest rates for the ninth consecutive policy meeting, citing ongoing high food inflation. Sensex and Nifty indices dipped nearly 1% following the announcement. Meanwhile, LIC reported a 10% increase in net profit, and India's forex reserves reached a record high of USD 675 billion.

The Reserve Bank of India (RBI) on Thursday kept its interest rates unchanged for the ninth consecutive policy meeting, as persistent high food inflation continues to pose challenges. Home and auto loans are likely to remain at current rates.

In response to the RBI's decision, India's benchmark indices, Sensex and Nifty, closed nearly 1% lower. The central bank's stance on food inflation, termed as 'stubborn,' has influenced market sentiment.

On a positive note, the Life Insurance Corporation of India (LIC) announced a 10% rise in net profit to Rs 10,461 crore for the June 2024 quarter. Additionally, India's forex reserves have soared to a record high of USD 675 billion, as reported by RBI Governor Shaktikanta Das.