RBI Holds Key Repo Rate at 6.5%

October 23, 2023

The MPC, in its policy review meeting, had retained the key repo rate at 6.5 percent, reiterating willingness to act against inflation….reports Asian Lite News

A majority of the members of the RBI’s Monetary Policy Committee (MPC) are of the view that the central bank’s policy needs to remain actively disinflationary as headline inflation is ruling above the tolerance band and its alignment with the target is getting interrupted, the minutes of the last meeting released on Friday showed.

The MPC, in its policy review meeting, had retained the key repo rate at 6.5 percent, reiterating willingness to act against inflation.

“Going forward, inflation outlook continues to be beset with uncertainties, especially from adverse weather events, the playout of El Nino conditions, uncertainties in global food and energy prices and volatility in global financial markets,” RBI Governor Shaktikanta Das was quoted as saying in the minutes of the October meeting ahead of the monetary policy announcement.

“Inflation prints for September and October will need to be monitored carefully to look out for the moderation that our projections anticipate,” RBI Deputy Governor Michael Debabrata Patra said.

In September, India’s headline retail inflation rate fell to 5.02 per cent in September, mainly because of the sharp fall in vegetable prices.

But clearly the MPC members are of the view that situation needs to kept under close watch.

The RBI Governor said on Friday at a conclave in Delhi that “We remain extra vigilant on inflation dynamics as the outlook on food inflation is beset with uncertainties”.

The central bank faces the challenge of maintaining a delicate balance between promoting growth and controlling inflation with the potential for conflicts between the two objectives.

ALSO READ: A Bumpy Ride: Musk’s First Year as X Owner

Previous Story

External Factors Impact Indian Markets

Next Story

GenAI Investments to Outpace Overall AI Spending

Latest from BUSINESS

India’s Job Market Surges

With hiring levels on the rise, compensation is expected to increase by 12-15% in metro cities and by 18-22% in emerging cities

India Inc Eyes Upswing

Private equity (PE) remained comparatively stable in Q2, clocking 357 deals worth $7.4 billion — the second-highest volume since Q4 2022. However,

Microsoft Cuts Deep

The fresh job cuts come less than two months after Microsoft announced it was laying off more than 6,000 employees…reports Asian Lite

Don't Miss