Citing worries over the rising trajectory of inflation in the coming days, Reserve Bank of India (RBI) on Wednesday left its key policy rates unchanged on Wednesday. The central bank raised the inflation projection to 4.7 per cent at the upper end by March, while retaining growth estimates at 6.7 per cent for the current fiscal.
The 6-member Monetary Policy Committee in a 5:1 vote chose status quo on rates
in an effort to keep retail inflation within the target of 4 per cent plus or minus 200 bps, while supporting the country’s growth.
The RBI has increased its inflation projection by 10 basis points to 4.3-4.7 per cent in the second and the fourth quarters, from 4.2-4.6 per cent estimated in the October review.