India's Reserve Bank keeps key interest rate at 6.5%

The Reserve Bank of India (RBI) has kept its key interest rate unchanged for the seventh consecutive meeting as inflation remains within the target range. The repo rate remains at 6.5% per annum, as predicted by most analysts and economists.
Consumer prices in India rose by 5.1% in February, which is consistent with the January figures. The Central Bank's target range is 2-6%.

On Friday, RBI Governor Shaktikanta Das confirmed the Central Bank's commitment to reducing inflation to 4%.

Since May 2022, the Indian central bank has raised its key rate by a total of 250 basis points, currently at its highest level since January 2019.

On Friday, the Indian Central Bank confirmed the country's GDP growth forecast for the current fiscal year, ending in March 2025, at 7%. Specifically, an increase of 7.1% is expected in the first financial quarter, followed by 6.9% in the second, and 7% in the third and fourth financial quarters.

The RBI has maintained its estimate of consumer price growth for this fiscal year at 4.5%. Inflation is expected to average 4.9% in the first financial quarter, 3.8% in the second, 4.6% in the third, and 4.5% in the fourth.