RBI keeps repo rate unchanged at 6.5 pc
Mumbai (PTI): The Reserve Bank of India on Thursday hit the pause button and decided to keep key benchmark policy rate at 6.5 per cent even as inflation is trending above its tolerance level.
The rate hike has been paused after six consecutive rate increases aggregating to 250 basis points since May 2022.
Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) will not hesitate to take action in the future.
While keeping the interest rate intact, Das said core inflation remains sticky.
Core inflation generally refers to inflation in manufactured goods.
Retail inflation in February stood at 6.44 per cent compared to 6.52 per cent in the previous month. MPC takes into account retail inflation numbers for setting the interest rates.
However, inflation is expected to moderate in the current fiscal. Many institutions, including the World Bank and Asian Development Bank, have predicted that inflation would cool down to about 5 per cent this financial year.
For the next fiscal, RBI projected a growth rate of 6.5 per cent as compared to 6.4 per cent estimated in February. In the latest Economic Survey of the finance ministry, growth was projected at 6-6.8 per cent for 2023-24.
Last month, the US Federal Reserve announced another 25 basis points interest rate hike to tame inflation.
With the hike, the Fed has increased the federal funds rate from nearly zero in March 2022 to a range of 4.75-5 per cent.
The European Central Bank and Bank of England have also hiked their benchmark rates.
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Ind vs Ban: Rain washes out Day 2 of 2nd Test
Kanpur, Sep 28: The second day of the second Test between India and Bangladesh was on Saturday called off without a ball being bowled due to persistent downpour.
The drizzle in the morning turned into heavy rain, not letting the action begin on day two at Green Park Stadium.
The groundsmen put the three super soppers to work around 11:15 am after the rain stopped. The visibility was also poor.
As conditions did not improve, the second day's play was called off officially at 2:15pm.
As per the weather forecast, the city is expected to receive rain even on Sunday but Monday and Tuesday are likely to be sunny and warm. In that scenario, the match seems to be headed for a draw.
Bangladesh had ended the rain-curtailed opening day at 107 for three as only 35 overs could be bowled.
India pacer Akash Deep accounted for Bangladeshi openers -- Zakir Hasan and Shadman Islam -- while off-spinner Ravichandran Ashwin sent back rival skipper Najmul Hossain Shanto.
India are leading the two-match series 1-0, having won the Chennai Test by 280 runs.
