RBI holds rate despite stubborn inflation
Policy-makers hint at need for further tightening as inflation stays above target
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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