An extended pause

More clarity is needed on the Paytm issue

The six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI), unsurprisingly, kept the policy repo rate and stance unchanged in the first meeting this calendar year. The policy repo rate thus remains at 6.5 per cent. The rationale for maintaining the status quo is clear. The MPC intends to bring the consumer price index-based inflation rate closer to the legally mandated target of 4 per cent on a durable basis. The rate has been above target for a considerable period. For instance, after moderating to 4.9 per cent in October 2023, it again increased to 5.7 per