Repo rate kept unchanged at 6.5, as expected
RBI to maintain tight stance as inflation seen a risk
Rates expected to stay on hold well into 2024

MUMBAI, Dec 8 Reuters India39;s central bank on Friday raised its fiscal year growth forecast on the back of a robust economy and flagged continuing tight monetary policy while it keeps watch over inflation risks.

The Reserve Bank of India expects the economy to expand 7 in the current fiscal year from 6.5 after stronger than expected growth in the JulySeptember quarter.

The Indian economy presents a picture of resilience and momentum, Reserve Bank of India RBI Governor Shaktikanta Das said. Growth remains resilient and robust, surprising everyone, he said.

The outlook for inflation, however, remains uncertain, Das said.

That prompted the central bank39;s sixmember monetary policy committee, consisting of three RBI and three external members, to keep the repo rate unchanged at 6.50, for the fifth consecutive meeting, and in line with the unanimous consensus in a Reuters poll.

The vote on the repo rate decision was also unanimous.

The RBI had raised the repo rate by a total 250 basis points bps since May 2022 in efforts to cool surging inflation, which dropped to a fourmonth low of 4.87 in October, but is expected to remain above the RBI39;s 4 mediumterm target for some time.

The nearterm outlook is masked by risks to food inflation, said Das, which might lead to an uptick in November and December even though core…