RBI Maintains Key Lending Rate at 6.5%

The Reserve Bank of India (RBI) today kept its key lending rate unchanged at 6.5% for the seventh consecutive time. The decision was taken by a 5:1 majority at the central bank’s bi-monthly Monetary Policy Committee (MPC) meeting, said RBI Governor Shaktikanta Das.

This means the loan interest rates too are likely to remain unchanged.

Mr Das said inflation is moving closer to targets, but last mile turning out to be challenging, 

“Equity markets have gained while bond yields and the US dollar remain volatile. High public debt is a dormant risk which could erupt. Worsening debt in advanced economies can create spill-overs for emerging market economies. EMEs with rising public debt are vulnerable to spill-over effect,” he added.

(Except for the headline, this story has not been edited by The Kashmir Monitor staff and is published from a syndicated feed.)