The Reserve Bank of India (RBI) has upheld its retail inflation forecast for the fiscal year 2023-24, anticipating an average of 5.4%.
In line with its commitment to inflation management, the central bank has chosen to keep the policy rate unchanged for the fourth consecutive time.
RBI Governor Shaktikanta Das announced the outcomes of the bi-monthly monetary policy, emphasizing the unanimous decision of the Monetary Policy Committee (MPC) to retain the repo rate at 6.5%.
This decision follows a series of rate hikes, totaling 250 basis points since May 2022, aimed at addressing the challenge of mounting prices.
Governor Das underscored the MPC's ongoing vigilance over inflation and its unwavering dedication to achieving the targeted level.
The growth projection for the current fiscal year remains at 6.5%, with risks perceived as balanced.
The MPC's meeting took place as Consumer Price-based Inflation (CPI) reached 6.83% in August, with the inflation data for September expected to be released next week.
Notably, the government has entrusted the RBI with the responsibility of maintaining CPI inflation within a range of 2% to 6%, with a target of 4%.
Nayan Dwivedi is Staff Writer at Swarajya.
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