India keeps interest rate constant at 6.5%

By Gokhan Ergocun

ISTANBUL (AA) – The Reserve Bank of India maintained its policy repo rate unchanged at 6.5% on Friday, for the fourth time in a row.

The rate was 4% in 2021, but increased gradually to 6.25% during the last year, with only one rate increase in 2023, from 6.25% to 6.5% in February.

The bank said in a statement that the rate decision was in line with the country's medium-term inflation target of 4%, while also aiming to support economic growth.

The Indian economy grew by 7.8% year on year in the first fiscal quarter, which covered the months of April and June, the bank said.

In July, the country's inflation rate was 7.4%, up 2.6 percentage points from the previous year.

Concerning the global economy, the bank said global GDP is losing momentum, while inflation rates in major economies are gradually easing but remain well above target levels.