India central bank keeps rates unchanged
Two of six committee members vote for a 25 basis point cut
GDP growth forecast for 202425 raised to 7.2 vs 7 previously
Average retail inflation seen at 4.5 for 202425

MUMBAI, June 7 Reuters The Reserve Bank of India RBI kept its key interest rate unchanged on Friday in a widely expected move, saying robust economic growth will give it space to focus on bringing down inflation towards its mediumterm target of 4.

The central bank raised its economic growth outlook for the current year but kept its outlook on inflation unchanged, though it warned of persistent price pressures on food.

Governor Shaktikanta Das said the RBI wants to ensure that inflation aligns with its target on a sustained basis.

The Monetary Policy Committee MPC, which consists of three RBI and three external members, kept the repo rate unchanged at 6.50 for an eighth straight policy meeting.

Four out of six MPC members voted in favour of the repo rate decision. JR Varma and Ashima Goyal, both external members of the committee, voted for a 25 basis point cut in rates.

India39;s economy, Asia39;s thirdlargest, grew faster than expected in the JanuaryMarch quarter but a surprising outcome in the recently concluded national elections rattled markets. A weakened mandate for the ruling Bharatiya Janata Partyled National Democratic Alliance has raised concerns about a slower pace of fiscal consolidation alongside higher welfare spending.

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