Key Points
RBI policy: Despite Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), expressing optimism regarding domestic growth, consumption recovery, and easing inflation, the domestic market sentiment stayed subdued on Friday..
Equity benchmarks the Sensex and the Nifty 50 were down by about 0.10 per cent each around 12 pm after the RBI announced a status quo on the repo rate and policy stance..
The RBIs Monetary Policy Committee (MPC) voted by a 5:1 majority to keep key rates unchanged at 6.5 per cent..
As Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Shares and Stock Brokers underscored, "While there was some anticipation of rate cuts by the end of 2024, the RBI seems inclined to adopt a wait-and-see approach before initiating a rate cut cycle.".
This strategy highlights the RBI's priority to balance growth with inflation control, acknowledging the significant weight of volatile food components in India's retail inflation basket and the potential impact of global oil price fluctuations.".
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