The Reserve Bank of India decided to keep the policy repo rate unchanged at 6.5% with 'readiness to act should the situation so warrant', RBI governor Shaktikanta Das announced on Thursday after the monetary policy committee meeting. "We are witnessing unprecedented uncertainties in geopolitics and economy," said governor Das while adding that RBI will remain focused on withdrawal of monetary policy accommodation.
Ahead of the RBI policy decision, the rupee depreciated by 5 paise to 81.95 against the US dollar in early trade. At the interbank foreign exchange, the domestic unit opened weak at 81.95 against the dollar, registering a decline of 5 paise over its last close. In initial trade, the local unit also saw a high of 81.88 against the greenback.In the last Monetary Policy Committee meeting in early February, the RBI decided to raise the repo rate by 25 basis points to 6.5 per cent. So far, RBI raised the repo rate, the rate at which it lends to banks, by 250 basis points cumulatively since May 2022.