Reserve Bank of India has decided to keep interest rates unchanged for the 5th time in a row. To this extent, RBI Governor Shaktikanta Das made a statement after the Monetary Policy Committee meeting. It has been clarified that the interest rates will continue at 6.5 percent.
“We unanimously agreed in monetary policy meeting to keep key interest rates close to 6.5%. It will take time for the global economy to return to normal. At present, the international economy is a bit weak. The reason for this is increasing debt and geopolitical tensions,” said Shaktikanta Das.
Shaktikanta Das said that even though India’s economy is strong, core inflation is still a bit of a problem.
Due to inflation , RBI has been increasing interest rates by 2.5 % since last year. Since then, the interest rates have been kept unchanged for the fifth time in a row.
Banks of many countries along with the US Fed have increased interest rates for a year. In recent times they have been kept as they are. Experts are of the opinion that if the process of reduction of interest rates by the Fed starts, there is a possibility of seeing rate cuts in other countries as well as India.