RBI's rate panel holds the line, but flags sticky food inflation
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A steady rate keeps EMIs flat, but the inflation caveat pushes any rate cut past the next quarter, longer than markets had priced in.
The Monetary Policy Committee voted 5-1 to hold the repo rate at 6.5% for a fourth straight review, citing persistent food-price volatility even as core inflation eased. The decision keeps borrowing costs unchanged for home and auto loan holders.
The RBI has held rates since its last hike eighteen months ago, waiting for durable evidence that food inflation has cooled before easing.
- •Q3 inflation print due next month
- •Whether food prices cool through the winter harvest