RBI Holds Interest Rates Steady Amid Inflation Concerns in March Policy

The Reserve Bank of India announced today it will maintain the repo rate at 6.5% during its March monetary policy review, citing persistent inflationary pressures. RBI Governor stated that while economic growth remains robust, inflation above the 6% target necessitates a cautious approach. The central bank also revised GDP growth forecasts downward to 6.8% for the fiscal year. Markets reacted moderately, with banking stocks showing minor gains. Analysts expect the RBI to keep rates steady in the near term until inflation shows sustained decline (source: Bloomberg).