RBI Keeps Key Lending Rate Unchanged At 6.5 Per Cent For Fifth Consecutive Time

The Reserve Bank of India's (RBI) Monetary Policy Committee unanimously decided to keep the repo rate- key lending rate- unchanged at 6.5 per cent for fifth time in a row, RBI Governor Shaktikanta Das announced on Friday (8 December).

“Monetary policy will remain actively disinflationary,” Das said announcing the monetary policy statement of the central bank.

The monetary policy committee took the decision with inflation control remaining a major focus amid expectations of a spike in food prices in coming months and better than expected economic growth.

Indian economy presents picture of resilience and momentum, Das said, emphasising that Q2 GDP exceeded all forecasts and fiscal consolidation is on course.

India’s economy grew 7.6 per cent in the July-September quarter, much faster than the polled median of 6.8 per cent and RBI’s estimate of 6.5 per cent, helped by government spending and manufacturing, raising bets that Asia’s third-largest economy will outperform its own estimates for the full year.

The RBI also maintained its policy stance of “withdrawal of accommodation” to ensure inflation progressively aligns with the committee’s target while remaining supportive of economic growth.