RBI Keeps Repo Rate Unchanged at 6.5% in Latest MPC Meeting

The Reserve Bank of India's Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.50% in its latest meeting. The decision was taken with a 4:2 majority, with two members voting for a rate cut.

RBI Governor stated that the central bank remains focused on withdrawal of accommodation to ensure inflation aligns with the target while supporting growth. The inflation has been above the 4% target due to elevated food prices.

Market experts believe that rate cuts may begin in the second half of the year if inflation moderates as expected. The decision is in line with market expectations.