The Reserve Bank of India has once again opted for a pause second time in a row, maintaining key benchmark policy rate at 6.5 per cent as inflation moderates.
The rate increase cycle was paused in April after six consecutive rate hikes aggregating to 250 basis points since May 2022.
Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) unanimously decided to keep the rate unchanged at 6.5 per cent.
“…Since the third week of May, the decline in currency in circulation and pick up in govt spending have expanded system liquidity. This has got further augmented due to the RBI’s market operations and the deposit of Rs 2000 banknotes in the banks,” said RBI Governor Shaktikanta Das during the media briefing .