Reserve Bank of India leaves policy rate on hold as expected

The Reserve Bank of India left its key repo rate at 6.5% for the seventh straight policy meeting in April, in line with market expectations.

The RBI decision came amid persistent price pressures. India’s annual inflation rate was reported at 5.09% in February, little changed from January’s level, while remaining within the central bank’s 2%-6% target range.

RBI Governor Shaktikanta Das reaffirmed a pledge to drive inflation down to 4%, but noted that uncertainties would still weigh on the inflation outlook.

Meanwhile, the RBI maintained its inflation forecast for the fiscal year 2025 at 4.5%, with projections of 4.9% for Q1, 3.8% for Q2, 4.6% for Q3 and 4.5% for Q4.

The central bank also kept its economic growth forecast for the fiscal year 2025 at 7%.

The Rupee was little changed on the day against the US Dollar, with the USD/INR currency pair last trading at 83.3570.

Still, the Indian currency remained under pressure near an all-time low of 83.4550 per dollar, which it registered on Thursday.