CHENNAI: The Reserve Bank of India's Monetary Policy Committee (MPC) on Wednesday kept the key repo rate unchanged at 5.5% and maintained its neutral policy stance amid uncertainty over the ongoing trade and tariff dispute with the United States.
Announcing the August policy statement, RBI Governor Sanjay Malhotra said the central bank will retain its GDP growth forecast for the current fiscal year at 6.5%, with risks evenly balanced, while acknowledging that geopolitical tensions pose headwinds.
The central bank also noted that core inflation has remained steady at 4%, in line with expectations.
Notably, the MPC had announced a larger-than-expected 50 basis point rate hike in its June policy review.