India's central bank decided to leave its benchmark interest rates unchanged for the second straight meeting and to remain focused on withdrawal of accommodation.
The six-member Monetary Policy Committee, led by the RBI Governor Shaktikanta Das, unanimously voted to hold the repo rate at 6.50 percent.
The standing deposit facility rate was left unchanged at 6.25 percent and the marginal standing facility rate and the Bank Rate, both at 6.75 percent.
The governor said the cumulative rate hike of 250 basis points undertaken by the central bank since May 2022 is transmitting through the economy and its fuller impact should keep inflationary pressures contained in the coming months.
The MPC voted 5-1 to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.
Although inflation is projected to decline in 2023-24 from its level in 2022-23, it would still be above the target, warranting continuous vigil, the committee said.
The headline inflation outlook was revised down slightly to 5.1 percent from 5.2 percent for 2023-24. The risks to the outlook were assessed to be evenly balanced.
At the same time, the bank retained its real GDP growth projection for 2023-24 is at 6.5 percent.
