RBI Maintains Rates Amid Inflation Concerns

  • Unchanged rates: The RBI's Monetary Policy Committee (MPC) kept the repo rate, which is the rate at which it lends to commercial banks, at 6.5%.
  • Inflation concerns: The RBI expressed concerns over inflation, citing factors such as geopolitical tensions and supply chain disruptions.
  • Economic growth: The central bank also emphasized the need to support economic growth, which has been showing signs of recovery.
  • Neutral stance: The RBI maintained its neutral stance, indicating that it is neither leaning towards tightening nor loosening monetary policy.
  • Market reaction: The decision was largely in line with market expectations, and the Indian stock market reacted positively.

Overall, the RBI's decision to maintain interest rates reflects its cautious approach to managing the economy amid inflationary pressures and global uncertainties.


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