2023.02.0804:41:00UTC+00India Central Bank Hikes Rate For Sixth Straight Meeting

India's central bank raised its benchmark rates for the sixth consecutive meeting, as widely expected, on Wednesday.

At the end of its three-day monetary policy meeting, the Monetary Policy Committee of the Reserve Bank of India decided to raise the policy repo rate by 25 bps to 6.50 percent.

Four members including Governor Shaktikanta Das voted in favor of a quarter point rate hike, while two members voted against the proposition.

Members also voted 4-2 to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.

"The MPC is of the view that further calibrated monetary policy action is warranted to keep inflation expectations anchored, break core inflation persistence and thereby strengthen medium-term growth prospects," the governor said.

Das said inflation is seen at 6.5 percent in the current financial year, down from 6.7 percent estimated previously. Based on the assumption of a normal monsoon, inflation is projected at 5.3 percent for 2023-24.

Real economic growth for 2023-24 is projected at 6.4 percent, with risks broadly balanced.