Beijing (dpa)
The Reserve Bank of India took the first step towards lowering interest rates, by easing the relatively hawkish stance of monetary policy, joining other central banks in this direction.
The Central Bank’s Monetary Policy Committee, which includes 3 members from abroad, voted by a majority of 5 votes to one in favor of keeping the main interest rate at 6.5% during its meeting today.
The committee also decided unanimously to change the monetary policy stance to “neutral” for the first time since June 2019.
Shaktikanta Das, Governor of the Indian Central Bank, said that the inflation rate may decline in the coming months, while the core inflation rate, which excludes more volatile commodities such as food and energy, appears to have reached its lowest levels.
He added that India’s economic growth outlook is stable, with personal consumption and investment continuing to grow.
The Central Bank Governor continued in television statements, saying: The committee decided to change the monetary policy stance to neutral, and to continue focusing on the stable trend of the inflation rate.
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