The Reserve Bank of India maintains the benchmark interest rate unchanged due to persistent high inflation risks

News on August 8, the Reserve Bank of India maintained its benchmark interest rate unchanged for the ninth consecutive time at a policy meeting on Thursday, as inflation remains above target levels. Four out of six members of the Reserve Bank of India's Monetary Policy Committee voted to keep the benchmark repurchase rate unchanged at 6.5%, with all but one of the 43 economists surveyed previously predicting no change. The Monetary Policy Committee also decided to retain its relatively hawkish policy stance. Inflation in India rose to 5.08% in June, more than one percentage point higher than the central bank's target level of 4%. Rising food prices have complicated timing for interest rate cuts. Shaktikanta Das, Governor of Reserve Bank warned against cutting rates too early. Economists expect that RBI will cut rates in Q4 this year and only act after Federal Reserve cuts rates.