No Rate Hike in Sight: RBI MPC Keeps Repo Rate at 6.5%

RBI Signals Continued Support for Growth: No Rate Hike in Sight: RBI MPC Keeps Repo Rate at 6.5%.

RBI’s Governor Shaktikanta Das has announced to keep the repo rate unchanged at 6.5% for the fifth time in a row, as announced by the Reserve Bank of India’s Monetary Policy Committee (MPC) on Friday. This decision comes after the six-member committee unanimously agreed to maintain the rate, following a cumulative increase of 250 basis points from May 2022 to December 2022.

Additionally, the RBI MPC opted to keep the policy stance unchanged, focusing on withdrawing accommodation. This aligns with predictions made by experts, including those from the State Bank of India, such as former SBI chief Rajnish Singh, who anticipated the status quo due to the absence of reasons for a rate cut or increase.

Governor Shaktikanta Das remarked that the Indian economy demonstrates resilience and momentum despite global uncertainties. He highlighted the economy’s robust fundamentals, citing healthier balance sheets for banks and corporates, ongoing fiscal consolidation, manageable external balances, and forex reserves providing a buffer against external shocks.