Indian Monetary Policymakers Left Interest Rate Unchanged
June 8, 2023
Officials at the Reserve Bank of India had paused the cycle of interest rate hikes at their policy review in April and maintained the existing stance again at this month’s meeting. Between May 2022 and February 2023, the RBI’s repo rate had been increased six straight times from 4.0% to 6.5%. Consumer price inflation in India crested at a 95-month high of 7.79% in April 2022 to 4.7% one year later, which happens to fall inside the 2-6% target corridor. According to today’s statement about the world and Indian economies, “the pace of monetary tightening has slowed in recent months, but uncertainty remains on its future trajectory as inflation continues to rule above targets across the world.” Officials decided to leave the interest rate steady by a unanimous vote but remain in trust-but-verify mode, promising to “do whatever is necessary to ensure that long-term inflation expectations remain firmly anchored.”
Copyright 2023, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Reserve Bank of India
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