RBI Maintains Interest Rate at 6.5% for 10th Review

• RBI maintains benchmark interest rate at 6.5% for 10th consecutive monetary policy review since April 2023.
• Policy stance shifts from “withdrawal of accommodation” to “neutral” for future rate cut.
• The Monetary Policy Committee approved the policy stance change unanimously.
• The committee aims to align inflation with the target and support growth.
• Moderation in headline inflation expected to reverse in September and remain elevated in the near-term due to adverse base effects.
• RBI Governor Shaktikanta Das emphasizes maintaining control and monitoring evolving conditions for further confirmation of disinflationary impulses.
• RBI maintains 7.2% GDP growth projection and 4.5% average inflation estimate for 2024-25.
• Lowers second-quarter inflation projection to 4.1% from 4.4%.