India's central bank left its benchmark rates unchanged on Friday as recurring food price shocks are impeding the ongoing disinflation process.
The Monetary Policy Committee of the Reserve Bank of India headed by Shaktikanta Das unanimously decided to hold the policy repo rate at 6.50 percent.
The repo rate was left unchanged for the fifth consecutive session. The RBI has lifted the key rate by 250 basis points since May 2022 to put a lid on inflation.
The bank today said it is prepared to undertake appropriate and timely policy actions, should the situation so warrant.
The MPC voted 5-1 to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.
Consumer price inflation is projected at 5.4 percent for 2023-24, unchanged from the previous outlook. The bank has lifted its growth outlook for 2023-24 to 7.0 percent from 6.5 percent.
