The Reserve Bank of India (RBI) on Wednesday chose caution over action, extending its pause on interest rates for a fourth consecutive policy meeting as policymakers concluded that the recent rise in inflation is not yet broad-based and the global environment remains too uncertain to warrant a policy shift.
The six-member Monetary Policy Committee (MPC), chaired by RBI Governor Sanjay Malhotra, unanimously kept the benchmark repo rate unchanged at 5.25% and retained its neutral policy stance. The Standing Deposit Facility (SDF) rate remains at 5%, while the Marginal Standing Facility (MSF) rate and Bank Rate stay at 5.5%.
The decision marks the fourth straight policy review since the RBI's last rate cut in December last year, underscoring the central bank's preference to wait for "greater clarity" on inflation and global developments before making its next move.
