Reserve Bank of India Governor Shaktikanta Das announced on Thursday, 6 April, that the repo rate would remain unchanged at 6.5 percent.
The central bank decided to hit the brakes on the hike after increasing it by 250 basis points since May 2022.
However, Das announced that the Monetary Policy Committee (MPC) will not hesitate to take action in the future if needed.
Meanwhile, retail inflation in February was 6.44 percent, compared to 6.52 percent in January.
However, in the current fiscal, inflation is expected to be moderate. Several global financial bodies like the World Bank and the Asian Development Bank have said that inflation would further slide to around 5 percent in the current financial year.
The RBI has projected a growth rate of 6.5 percent in the next fiscal, 0.1 percent more than what it had estimated in February. On the other hand, the Finance Ministry's Economic Survey had predicted growth to be at 6-6.8 percent in 2023-24.