The Reserve Bank of India, as expected, left its benchmark interest rate unchanged, prioritizing inflation concerns amidst policy uncertainty following an unexpected election result.
The Monetary Policy Committee, in its recent decision, opted to keep the benchmark repurchase rate at 6.5% on Friday, maintaining its relatively hawkish stance of “withdrawal of accommodation.”
Compared to the previous meeting where one member voted for a cut, this time two out of the six MPC members favored a reduction.
In the recent election, the Modi-led Bharatiya Janata Party (BJP) was up against the Indian Alliance, led by the Congress Party. Modi aims to continue his tenure and has emphasized his vision of elevating India’s economy and achieving developed nation status by 2047.
However, he faces criticism, particularly from Muslim groups, for his divisive rhetoric. Modi is relying on support from the Hindu community.
Vote counting is expected to take place on Tuesday, following the completion of the final round of voting today, with results anticipated on the same day.