Mumbai: Reserve Bank's monetary policy decision of keeping the key interest rate unchanged and focus on moderating inflation shows a resolve on the part of the central bank to ensure price stability and sustained economic growth, experts opined on Friday.
The RBI kept the benchmark interest rates unchanged at 6.5 per cent for the seventh time in a row, citing concerns over food inflation in view of IMD's prediction of above-normal maximum temperatures from April to June. As the central bank held key policy rates steady, the EMIs on home and auto loans are likely to remain stable for some more time. The RBI has kept interest rates unchanged since February 2023.
"We stand by RBI's commitment for 'unwavering focus on price stability' to ringfence the economy from global headwinds, including geo-political situation and the resultant supply chain disruptions," Assocham Secretary General Deepak Sood said. The central bank has successfully shielded the economy from global uncertainties over the past few years, he added.
President of industry body PHDCCI Sanjeev Agrawal too said the RBI's decision on its policy rates will propel economic activity and boost economic growth. "We expect a repo rate cut as and when headline inflation softens around 4.5 per cent," he said.
