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RBI Governor Shaktikanta Das has said “it’s a pause and not a pivot” about the Reserve Bank’s surprise decision to hold the key policy rate at 6.50 per cent after hiking the rate six times since May last year.
Cumulatively since last May, Reserve Bank of India (RBI) has increased the interest rate by 250 basis points to tackle inflation and the Monetary Policy Committee’s decision on Thursday to leave the repo rate unchanged came as a surprise.
RBI Deputy Governor Michael Patra, who heads the monetary policy department at the central bank, said, “this pause is valid till 10 am on June 8, 2023 when the Governor will announce the next policy review”.
