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RBI keeps interest rate unchanged
Why is it in the news?
- The Reserve Bank of India (RBI) kept the policy interest rate unchanged at 5.15% at the fifth bimonthly monetary policy review meeting.
- The rates have been unchanged, despite slowing economic growth.
More in the news
- Given the slowdown, the market was expecting the central bank to cut interest rates for the sixth straight time.
- RBI cited inflation concerns.
- The accommodative stance of the monetary policy was retained.
- Bat for Monetary transmission: The RBI said there is a need to optimise the impact of rate reductions.
- Wait and watch: RBI paused to wait for further clarity on the inflation front and the steps that the government might take in the Budget to prop up growth.
Source
The Hindu.