Reserve Bank Governor Shaktikanta Das, while announcing the Monetary Policy on Thursday, said benchmark interest rate will remain unchanged at 6.5 per cent. The central bank is keeping the rate unchanged for ninth time in a row for the last 18 months.
RBI has also decided to continue with the monetary policy stance on withdrawal of accommodation.
Das said inflation is broadly on declining trajectory, adding the in the third quarter, substantial advantage of base effect may pull down overall inflation. He added that food inflation remains stubborn.
RBI rate-setting panel MPC has kept the growth projection unchanged at 7.2 per cent for current financial year.
The RBI governor said household consumption is supporting turnaround in demand while improved agricultural activities brightens prospects of rural consumption.
He said the manufacturing sector continues to gain ground on back of increasing domestic demand while the service sector remains buoyant.
Das also pointed out that new technologies like AI pose fresh challenges for the global economy.
