The strong growth momentum and GDP projections for 2024-25 give the Reserve Bank of India (RBI) a policy space to unwaveringly focus on price stability, stressed Governor Shaktikanta Das, while voting for status quo in the interest rate earlier this month.
The RBI had maintained status quo on the benchmark lending rate (repo) at 6.5% since February 2023 on concerns over inflation after the three-day meeting of the Monetary Policy Committee (MPC) earlier this month.
The central bank on Friday released the minutes of the meeting.
“The gains in disinflation achieved over last two years have to be preserved and taken forward towards aligning the headline inflation to the 4% target on a durable basis,” he said, according to the minutes.
Five of the six MPC members had voted for status quo in the policy rate.
MPC member Jayanth R Varma, however, had advocated a reduction in the repo rate by 25 basis points as “high interest rates entail a growth sacrifice”.
Edited by Swetha Kannan
