RBI keeps rates unchanged amid policy dissent on lower-for-longer stance

Policy makers voted 5-1 in favor of keeping the stance accommodative, a departure from the past when they were unanimous on the need to support growth amid the pandemic.

India’s central bank kept interest rates unchanged at a record low to support the economy, even as a split appeared among rate setters on continuing with the lower-for-longer stance.

The Reserve Bank of India’s six-member Monetary Policy Committee retained its main repurchase rate at 4% on Friday, as predicted by all 29 economists in a Bloomberg survey. Policy makers voted 5-1 in favor of keeping the stance accommodative, a departure from the past when they were unanimous on the need to support growth amid an impending third wave of the pandemic.

That follows the pace of inflation breaching the RBI’s