According to Odaily, the Reserve Bank of India (RBI) has decided to keep its benchmark interest rate unchanged for the ninth consecutive policy meeting, citing inflation rates that remain above target levels. The decision was made by the RBI's Monetary Policy Committee (MPC), where four out of six members voted to maintain the repo rate at 6.5%. This outcome aligns with the expectations of 42 out of 43 economists surveyed prior to the meeting, who predicted no change in the rate. The MPC also opted to retain a relatively hawkish policy stance.

In June, India's inflation rate rose to 5.08%, exceeding the central bank's target of 4% by more than one percentage point. The increase in food prices has complicated the timing for potential rate cuts. RBI Governor Shaktikanta Das has previously cautioned against premature rate reductions. Economists anticipate that the RBI may consider lowering rates in the fourth quarter of this year, but only after the U.S. Federal Reserve initiates rate cuts.