RBI Doesn’t Change Key Lending Rates, Growth Target Lowered To 6.6%
New Delhi: For the eleventh consecutive time, the Reserve Bank of India (RBI) has kept its key lending rate unchanged citing high inflation. But it lowered the growth target for the current financial year to 6.6 per cent.
The six-member Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 6.5 per cent by a 4:2 majority, announced RBI Governor Shaktikanta Das on Friday. morning. It means that loan interest rates too are likely to remain unchanged.
The RBI has paused the rate increase cycle in April 2023, after six straight rate hikes of 250 basis points since May 2022.
But the MPC lowered the growth target for this fiscal to 6.6% from 7.3% in the July-September quarter as the Q2 growth turned out to be 5.4%, lower than the projected figure.
Inflation surged above the 6% tolerance level in October, the RBI governor said. According to him, the food inflation will start easing in the January-March quarter.
