Persistently high inflation fanned in part due to supply side disruptions along with seasonal factors deterred the Reserve Bank of India (RBI) from reducing lending rates.

Instead, it maintained the key lending rates.

Accordingly, the Monetary Policy Committee of the central bank maintained the repo rate — or short-term lending rate for commercial banks, at 4 per cent.

The MPC voted to maintain accommodative stance, thus opening up possibilities for more future rate cuts.

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