NO SURPRISES

The RBI has kept rates unchanged as it looks to bring inflation down to its 4% target; it has also proposed allowing cash deposits via UPI

- TEENA JAIN KAUSHAL

THE RESERVE BANK of India (RBI), in its maiden Monetary Policy Committee (MPC) meeting of financial year 2024-25, kept the repo rate unchanged at 6.5% as it sought to maintain its focus on strengthening the economy. This is the seventh consecutive policy meeting where it has chosen to keep the policy repo rate unchanged. That's because it is treading cautiously since retail inflation has remained above its 4% target, though it was well within the 2% margin at 5.09% in February. Besides, it is also keeping an eye out on the geopolitical tensions in the Middle East.

Inflation was the 'elephant in the room' two years ago, RBI Governor Shaktikanta Das said at the post-policy press conference on April 5. "The elephant has now gone out for a walk and appears to be returning to the forest. We would like the elephant to return to the forest and remain there on a durable basis."