Central Bank’s Decision To Leave The Repo Rate Unchanged

RBI signals end to rate cuts as inflation risks rise RBI keeps policy rate on hold, with eyes on inflation RBI keeps policy rate on hold for second meeting in a row.

The Reserve Bank of India (RBI) on Wednesday kept its policy repo rate unchanged at 6.25 percent, as widely expected, while lowering its projections for inflation after recent data showed consumer prices rising more slowly.

The central bank’s decision to leave the repo rate at a 6-1/2 year low had been expected by 56 of the 60 analysts surveyed by Reuters. RBI last changed the policy rate with a 25 basis points cut in October.

The RBI also left its reverse repo rate unchanged at 6.00 percent after a surprise 25 basis point increase in April.

The vote by the central bank’s monetary policy committee was 5-1, the first dissent in the five meetings since the MPC was formed last September.

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