RBI KEEPS POLICY REPO RATE AT 6.50%, RETAINS GROWTH FORECAST AT 7%

Headline inflation softened to 5.1 per cent during January-February 2024, from 5.7 per cent in December. After correcting in January, food inflation edged up to 7.8 per cent in February primarily driven by vegetables, eggs, meat and fish.

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The Reserve Bank of India on Friday, as widely expected, kept the policy repo rate unchanged at 6.50 per cent, remaining focused on the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent while supporting growth even as the domestic economy experiences strong momentum on the back of GDP growth of 7.6 per cent in 2023-24, buoyant domestic demand, strong investment activity and a lower drag from net external demand.

Headline inflation softened to 5.1 per cent during January-February 2024, from 5.7 per cent in December. After correcting in January, food inflation edged up to 7.8 per cent in February primarily driven by vegetables, eggs, meat and fish.