Govt welcomes RBI's rate-hike pause

The unexpected pause in the rate-hike cycle has been welcomed by the Finance Ministry, with officials saying the move is a well-thought out step that would help sustain economic growth.

“The monetary policy committee decision is well thought out and aimed at sustaining growth,” an official told Business Today TV. 

The official added that India is in a better position in terms of macroeconomic stability, as compared to other countries.

While declining to comment on the downward revision of economic growth forecasts for India by various agencies, the official said given the fiscal position, India is balancing the risks well.

Meanwhile, finance minister Nirmala Sitharaman welcomed the rate-hike pause. "RBI has taken a good call", she said to reporters on the sidelines of an event in Bengaluru. The FM added that "inflation has been kept at six per cent or below".

The Reserve Bank of India on Thursday kept the repo rate unchanged at 6.50 per cent, with the Monetary Policy Committee deciding unanimously to pause the rate-hike cycle.