RBI leaves rates unchanged, as expected

MUMBAI, Feb 8 (Reuters) - India's key policy rate was left unchanged for a sixth straight meeting on Thursday, as inflation remained above the central bank's 4% medium-term target while economic growth continued to be resilient.

The six-member monetary policy committee, consisting of three Reserve Bank of India (RBI) and three external members, left the key repo rate unchanged at 6.50% after having raised it by 250 basis points between May 2022 and February 2023.

Monetary policy must continue to be actively disinflationary, RBI Governor Shaktikanta Das said in his statement.

Five out of six members voted in favour of the rate decision.

Annual retail inflation picked up to 5.69% in December from November's 5.55%, well above the 4% target. However, a sustained fall in core inflation and a fiscally prudent budget have raised expectations of a possible change in the RBI's monetary policy stance.

Traders will scrutinise Das' speech to get a sense of the timeline for a policy pivot while any measures to ease tight cash conditions in the banking system will also be key.

(The story has been published from Reuters without any major changes)