The Reserve Bank of India (RBI) has chosen to keep key interest rates at 6.5 percent for the eleventh consecutive time, prioritizing inflation control over economic growth.

Governor Shaktikanta Das emphasized the importance of striking a delicate balance between fostering growth and ensuring price stability during the recent Monetary Policy Committee (MPC) review.

To enhance liquidity and stimulate consumption, the MPC has reduced the cash reserve ratio by 50 basis points to 4 percent.

Despite government pressure to boost economic activity, the committee's decision reflects a cautious approach to managing inflationary pressures.

Looking ahead, the RBI expects a decline in inflation during the January-March quarter, suggesting the possibility of a rate cut in the upcoming February policy review.