RBI holds repo rate steady in its latest bi-monthly monetary policy

The Reserve Bank of India’s (RBI) key lending rate has been held steady as inflation concerns resurfaced following higher-than-usual seasonal spikes in food prices recently. The monetary policy committee (MPC) has kept the repo rate unchanged at 6.50 per cent. The food price spikes in India, drove up headline inflation in June 2023, snapping a four-month downward trend. As per industry sources, in July 2023, it is anticipated to have reached around 6.4 per cent, moving out of the RBI’s 2 per cent-6 per cent comfort band.