The three-day meeting of the Reserve Bank of India's Monetary Policy Committee (MPC) started on April 3. Headed by Governor Shaktikanta Das, the committee keeps repo rate unchanged at 6.5 percent with readiness to act should the situation so warrant.
The monetary policy committee (MPC), which has three members from the central bank and three external members, retained the key lending rate or the repo rate at 6.50 percent, in a unanimous decision.
The Reserve Bank of India said it stood ready to act against inflation if conditions warranted, with Governor Shaktikanta Das saying the decision to pause was "for this meeting only", signalling further rate hikes were still possible. Monetary Policy Committee will not hesitate to take any action in future, says RBI Governor after hitting pause button on rate hike.
A majority of MPC members, in the last 4-5 meetings, agreed on the rate raises to keep inflation under check. Jayanth Varma is the sole member who voted for a rate pause in the last couple of meetings.
RBI Governor Shaktikanta Das said “we are keeping a close watch on the banking sector turmoil in some developed countries”.
The April monetary policy by RBI is being announced at a time when central banks around the world are grappling with a challenging situation of controlling inflation, promoting economic growth, and addressing the banking sector crisis.