Reserve Bank of India maintains interest rates at 6.5% to curb inflation

Reserve Bank of India (RBI) held its key interest rate stey on Friday in line with market expectations, as country's robust economic growth continues to allow a focus on curbing inflation to its medium-term target of 4 per cent.

Monetary Policy Committee (MPC), comprising three RBI members and three external members, decided to keep repo rate unchanged at 6.50 per cent for eighth consecutive policy meeting.

Governor Shaktikanta Das, in his statement, revealed that four out of six MPC members voted in favour of maintaining repo rate, stressing central bank's commitment to ensuring inflation aligns with target.

In a Reuters poll, all but one of 72 economists h anticipated MPC to maintain repo rate at 6.50 per cent. Most economists view this rate as peak of current monetary cycle.

committee, with a majority of four out of six votes, also opted to retain 'withdrawal of accommodation' stance.

last rate change occurred in February 2023, when policy rate was raised to 6.50 per cent. While annual retail inflation slightly eased to 4.83 per cent in April from 4.85 per cent in March, it remained above MPC's target.

Official data released last week showed that economy expanded at a faster-than-expected pace of 7.8 per cent in March quarter, leing to a full-year growth of 8.2 per cent for South Asian nation.

(With Reuters inputs.)