The Reserve Bank of India on Wednesday announced that it would keep the policy repo rate unchanged at 5.25%, with the Monetary Policy Committee unanimously deciding in favour of a status quo on the policy interest rate and a neutral stance.
Announcing the key decision, RBI governor Sanjay Malhotra noted that the West Asia conflict has challenged the global economy, with disruption to key trade routes. However, he said that economic growth continues to be supported by resilient demand.
Governor Malhotra said that India continues to be the world’s fastest-growing large economy.
He said that the rise in inflation exacerbated by food and fuel prices is not broad-based. The governor noted that headline inflation is expected to rise in near term, fuelled by higher oil and food prices. He said that it will peak in the third quarter of the financial year before starting to decline.
This is a breaking story. We will update with further information.