MUMBAI — The Reserve Bank of India (RBI) unexpectedly maintained its key repo rate on Thursday, breaking from its recent trend of six consecutive hikes.
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In its statement, the central bank noted that it was closely monitoring the effects of recent global financial turbulence.
The RBI affirmed that its policy focus is on the “withdrawal of accommodation,” indicating that it may raise rates further if required.
The RBI Governor, Shaktikanta Das, clarified that the decision to hold rates was only for this meeting.
The monetary policy committee (MPC) unanimously agreed to retain the key lending rate, or the repo rate (INREPO=ECI), at 6.50%.
Market analysts had anticipated a final 25 basis point increase in the RBI’s current tightening cycle, which has resulted in a total rate hike of 250 bps since May 2021.