RBI monetary policy review: What led to the interest rate pause?

While a majority of market participants were expecting another repo rate hike, the RBI opted for a pause. A number of factors were considered before keeping the repo rate unchanged after rate hikes in the six previous policy review meetings.

"Inflation has softened from its elevated levels a year ago. however, it still remains above the upper tolerance band. Projections for 2023-24 point to a softening in inflation, though the disinflation is likely to be gradual and protracted, given the rigidity in core or underlying inflation pressures", said Shaktikanta Das, RBI Governor.