Central bank maintains key interest rate

The Reserve Bank of India has left the key interest rate, or the repo rate, unchanged at 6.5% in its fifth bimonthly monetary policy review for the year on Wednesday. It also maintained its stance of ‘calibrated tightening’, despite lowering inflation projections. All six members of the monetary policy committee voted in favour of a status quo on rates. On the issue of stance, only one member, R.H. Dholakia, voted for a change to ‘neutral’. At the post-policy interaction, RBI Governor Urjit Patel said the central bank was ready to take policy action if risks that would push up inflation did not materialise. “If the upside risks we have flagged do not materialise or are muted in their impact as reflected in the incoming data, there is a possibility of space opening up for commensurate policy actions by the Monetary Policy Committee,” he said.

Source : https://www.thehindu.com/todays-paper/central-bank-maintains-key-interest-rate/article25675759.ece

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