Economic Buzz: RBI keeps interest rates unchanged at 5.5%

The Reserve Bank of India (RBI) on Wednesday kept its policy interest rate unchanged at 5.5% for the second consecutive time, citing concerns over tariff uncertainties. Announcing the fourth bi-monthly monetary policy of the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) unanimously decided to keep the short-term lending rate or repo rate unchanged at 5.5% with a neutral stance. While GST rate rationalisation will have a sobering impact on consumption and growth, tariff related developments may slow down the economic expansion in the second half of the current fiscal, he said.

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