RBI Predicts Rise In Inflation But Keeps Key Lending Rate Unchanged

The Reserve Bank of India (RBI) today kept the key lending rate unchanged at 6.5% for the third time in a row, but said inflation rates are likely to rise led by vegetable prices. RBI Governor Shaktikanta Das said Monetary Policy Committee has unanimously decided to keep the policy repo rate unchanged. This means the loan interest rates too are likely to remain unchanged. The Indian economy is exuding enhanced strength and stability despite global shocks, said the Governor, adding that it is contributing 15% to global growth. The country is uniquely placed to benefit from the ongoing transformational shifts, he said.