RBI pauses rate hike again, warns of inflation risks

India’s central bank left its key interest rate unchanged for the third time in a row and said it stood ready to act if food fueled higher inflation.

The RBI today kept its benchmark repurchase rate at 6.50%, in line with market expectations.

Prior to this, it has raised interest rates six times since April 2022, for a total of 250 basis points.

The committee decided unanimously to retain the policy stance it introduced last April, which focused on “exiting easing”.

RBI Governor Shaktikanta Das said in his speech that the central bank has made significant progress in tackling inflation but expects prices to soar in July-August.