MUMBAI, Aug 10 (Reuters) – The Reserve Bank of India held its key lending charge regular on Thursday as widely expected, as inflation considerations resurfaced following higher-than-usual seasonal spikes in meals costs in current weeks.

The financial coverage committee (MPC), which has three members from the central financial institution and three exterior members, stored the repo charge (INREPO=ECI) unchanged at 6.50% in an unanimous choice. It was the third consecutive time that the committee determined to take care of charges.

The central financial institution, nonetheless, tightened liquidity situations by briefly elevating the money buffer that banks are required to carry.

India has raised charges by 250 foundation factors (bps) since May 2022 in a bid to chill surging costs.

Food worth spikes in India, typical on the onset of the monsoon, drove up headline inflation in June, snapping a four-month downward development. Analysts anticipate inflation to have reached 6.4% in July, transferring out of the RBI’s 2%-6% consolation band.

The Indian rupee was marginally weaker versus the U.S. greenback at 82.84 as of 10:17 a.m. IST, after the RBI left the coverage charge unchanged. The rupee ahead premiums dropped.

The RBI maintained its coverage stance of “withdrawal of accommodation” to make sure inflation progressively aligns with the committee’s goal whereas remaining supportive of financial progress, RBI Governor Shaktikanta Das mentioned.

Five of six committee members voted in favour of the stance.

The benchmark 2033 bond yield rose briefly after the liquidity measure to 7.1861%, however eased instantly because the governor mentioned the measure was non permanent.

Reporting by Swati Bhat and Sudipto Ganguly; Editing by Savio D’Souza and Miral Fahmy

Our Standards: The Thomson Reuters Trust Principles.