The Reserve Bank of India Governor Shaktikanta Das said that inflation for FY 2023-24 is projected at 5.2%.
RBI governor noted, “Overall inflation is above the target and the current policy rate still remains accommodative."
RBI Governor further announced that the RBI keeps the repo rate unchanged at 6.5% with readiness to act should the situation so warrant.
“It is now necessary to evaluate the action of past rate hikes," added Das.
The RBI monetary policy committee (MPC) announced the first bi-monthly policy for FY24 on April 6, concluding a three-day meeting. The MPC, led by RBI Governor Shaktikanta Das, met on April 3, 5 and 6 to review the current monetary policy.
In March, the US Federal Reserve hiked interest rates by 25 basis points. However, the Central bank also indicated its intention to pause further rate hikes due to concerns about the stability of the banking sector.
The decision was made in light of the recent collapse of three US banks: Silvergate, Silicon Valley Bank (SVB) and Signature Bank.