RBI keeps interest rates on hold in relief for borrowers

India’s central bank, the Reserve Bank of India, has decided to hold interest rates in its first meeting for the fiscal year 2023-24. While the Monetary Policy Committee had been expected to raise rates again, it justified its decision to hold off on further hikes to assess the progress made so far. The decision is seen as a return to pragmatism over placating inflation hawks, especially given the bleak global economic prospects. The MPC has increased the GDP growth forecast for 2023-24 by ten basis points to 6.5% and expects headline inflation to moderate to 5.2% in 2023-24.