The six-member Monetary Policy Committee of the Reserve Bank of India (RBI) on Friday decided to keep the policy repo rate unchanged at 6.5 per cent for the fifth straight review meeting, as well as the withdrawal of accommodation stance, while stopping short of clearly communicating that the rate cycle had peaked.
One of the key highlights of this no-action policy was the sharp revision of the FY24 GDP growth rate, which is now projected at 7 per cent as compared to 6.5 per cent earlier
The six-member Monetary Policy Committee of the Reserve Bank of India (RBI) on Friday decided to keep the policy repo rate unchanged at 6.5 per cent for the fifth straight review meeting, as well as the withdrawal of accommodation stance, while stopping short of clearly communicating that the rate cycle had peaked.
One of the key highlights of this no-action policy was the sharp revision of the FY24 GDP growth rate, which is now projected at 7 per cent as compared to 6.5 per cent earlier
“We have now reached a stage when every action has to be thought through even more carefully to ensure overall macroeconomic and financial stability; more so, because the conditions ahead could be fickle. We have to remain vigilant and ready to act, (in accordance with) the evolving outlook,” he said.
Stating that the future was expected to be clouded by uncertain food prices and the CPI rate for November was anticipated to be high, Das said inflation management could not be on auto-pilot.
The policy was interpreted by the market as dovish as compared to the previous two. In the August policy review the central bank mandated a temporary incremental cash reserve ratio for banks while in the October policy Das talked about possible open market sales of bonds to mop up liquidity
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