RBI holds rate despite stubborn inflation

Policy-makers hint at need for further tightening as inflation stays above target

Reserve Bank of India HQ, Mumbai
Reserve Bank of India HQ, Mumbai

The Reserve Bank of India held its policy rate today (June 8) but policy-makers indicated further tightening could be needed, as inflation remains high.

The monetary policy committee’s unanimous decision kept the key rate at 6.5%. Despite the rate hold, five of the six policy-makers backed a statement that the RBI will “remain focused on withdrawal of accommodation”.

Governor Shaktikanta Das acknowledged that inflation “rules above the target, warranting close monitoring”. He said the

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