October 23, 2023
1 min read

RBI Holds Key Repo Rate at 6.5%

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

Six OMCs Pump ₹290 Cr into Startups

The Union Minister said the country continues to stand as the world’s third-largest startup ecosystem….reports Asian Lite News Six oil marketing companies (OMC) in India have invested Rs 290 crore from their
Go toTop

Don't Miss

India needs to make fast moves in Africa

It is also no secret that concerns among several African

Kishida, Suga attend Japan-India association reception

At the ceremony held in Tokyo, Yoshihide Suga called for