Key Points
The Reserve Bank of India's Monetary Policy Committee (MPC) unanimously opted to maintain the repo rate at 6.5 per cent for the fifth consecutive time, RBI Governor Shaktikanta Das said on Friday..
Governor Das highlighted the central bank's continued focus on the withdrawal of accommodation stance..
This decision comes in light of inflationary pressures moderating closer to the RBI's target range of 2-6 per cent and a robust economic expansion in the first half of the fiscal year, driven by notable growth in the manufacturing and construction sectors...
We are more optimistic about growth (we were forecasting 7.2% growth for FY24 from the start of the fiscal year, revised it up to 7.6% in Oct23, and recently revised that up to 7.9% this month after the release of the Q2FY24 real GDP growth numbers), so we welcome the upward revision of the RBIs forecast for FY24 to 7%...
The Governor underscored the RBI's commitment to striking a balance in monetary policy, navigating between optimism fuelled by a few months of positive data and the risk of policy over-tightening..
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