Mumbai, 6/4:The Reserve Bank of India (RBI) on Thursday kept the repo rate unchanged at 6.5 per cent in its Monetary Policy Committee (MPC) meeting, after having raised rates in the last six meetings.
“The global economy is now witnessing a renewed phase of turbulence,” Governor Shaktikanta Das said, announcing the decision, and added that the central bank was keeping a close eye on the situuation to act promptly when required.
The RBI’s move to keep rates unchanged goes against the expectations of economists, a large number of whom had predicted a rate hike in view of growing inflation.
Retail inflation rose 6.44 per cent year-on-year in February, easing from 6.52 per cent in January but has remained above the central bank’s mandated target range of 2 per cent-6 per cent for 10 out of the last 12 readings.
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