Reserve Bank of India Governor Shaktikanta Das on Thursday affirmed that the central bank\u2019s Monetary Policy Committee (MPC) decided to keep the key repo rate unchanged at 6.50 per cent, in line with what the economists had predicted. According to reports, this marks the third time that the 6 member NPC has decided to keep the key rates unchanged. <\/p>\n\n\n\n
The RBI Governor added that after detailed deliberations on all relevant aspects, the MPC decided unanimously to keep the policy repo rate unchanged at 6.50 per cent. Furthermore, the Standing Deposit Facility (SDF) rate remains at 6.25 per cent and the Marginal Standing Facility (MSF) rate and the bank rate stand at 6.75 per cent. <\/p>\n\n\n\n
Saktikanta Das further noted that the MPC also decided by a majority of 5 among 6 members to focus on the withdrawal of accommodation to ascertain inflation progressively aligns with the target while supporting growth. Nonetheless, RBI governor Saktikanta Das expressed concern related to the sharp increase in inflation over the last few months. He asserted that the inflation has compelled the central bank to maintain a hawkish stance. <\/p>\n\n\n\n
While explaining the rationale behind the MPC\u2019s policy, Shaktikanta Das remarked that headline inflation, after reaching a low of 4.3 per cent in May 2023, increased in June and is likely to increase during July and August, led by the rising vegetable prices. The Governor stated that while the vegetable price shock may reverse quickly, possible El Nino weather condition along with food global prices needs to be watched closely against the backdrop of a skewed southwest monsoon.<\/p>\n\n\n\n
He continued that these developments warrant heightened vigilance on the evolving inflation trajectory. He mentioned that the cumulative rate hike of 250 basis points undertaken by the MPC as yet is working its way to the economy. On the other hand, he noted that the domestic economic activity is holding up well and is likely to retain its momentum, despite weak external demand. He ascertained that the MPC remained resolute in its commitment to aligning inflation to the 4% target as well as anchoring inflation expectations. <\/p>\n","protected":false},"excerpt":{"rendered":"
The RBI Governor added that after detailed deliberations on all relevant aspects, the MPC decided unanimously to keep the policy repo rate unchanged at 6.50 per cent. <\/p>\n","protected":false},"author":4,"featured_media":484087,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1497,1518],"tags":[98440,133196],"yst_prominent_words":[28834,21027,36147,6681,5699,7778,53916,23780,57115,12469,14795,61537],"ppma_author":[140543],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/d2r2ijn7njrktv.cloudfront.net\/apnlive\/uploads\/2023\/08\/10121915\/1608756575_shaktikanta-1.jpg","jetpack_sharing_enabled":true,"authors":[{"term_id":140543,"user_id":4,"is_guest":0,"slug":"apnnewsdesk","display_name":"APN Live","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/478eacb893eda88aa6ed8d99b005bf58?s=96&r=g"}],"_links":{"self":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts\/484085"}],"collection":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/comments?post=484085"}],"version-history":[{"count":0,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts\/484085\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/media\/484087"}],"wp:attachment":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/media?parent=484085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/categories?post=484085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/tags?post=484085"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=484085"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/ppma_author?post=484085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}