Central Bank Holds Interest Rates Steady Amid Inflation Concerns The Reserve Bank announced on Thursday that it would keep its benchmark lending rate unchanged at 6.5 percent for the eighth consecutive meeting. Governor Rajiv Malhotra stated that while inflation has shown signs of easing in recent months, the bank remains cautious about declaring victory over rising prices. Consumer price inflation fell to 4.2 percent in February, down from 5.1 percent in January, according to data released earlier this week. Food prices, which had been the primary driver of inflation throughout 2025, showed a notable decline as vegetable and cereal prices stabilized following a strong harvest season. The decision was widely expected by economists surveyed before the meeting. Most analysts had predicted the central bank would maintain its current stance given the mixed signals from the economy. While inflation is moderating, growth has also slowed to 6.3 percent in the latest quarter, down from 7.1 percent a year earlier.#central_bank #reserve_bank #rajiv_malhotra #consumer_price_inflation #food_prices
