Key Points
The Reserve Bank of India governor Shaktikanta Das on Friday announced the Monetary Policy Committee's decision to keep interest rates unchanged, inflation and growth forecasts largely similar, even as it warned of growth risks...
With a similar majority, it voted to keep the stance unchanged at 'withdrawal of accommodation'...
Das reiterated that the central bank seeks to ensure that the retail inflation in India returns to its target of 4 per cent on a sustained basis...
Key takeaways from MPC meetingMPC votes to keep policy repo rate under LAF unchanged at 6.5 per cent, SDF rate at 6.25 per cent and MSF, bank rate at 6.75 per centThe stance remains unchanged at "focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth, with a 5:1 majorityMPC expects the normal south-west monsoon to support agricultural activity..
Q1, Q2, Q3 and Q4 forecast at 4.9 per cent, 3.8 per cent, 4.6 per cent and 4.5 per cent respectively.Das warned that the recent firming up of international crude oil prices needs to be monitored closelyWhile growth activity has been resilient and headline inflation has come off its December peak, food prices continue to interrupt the ongoing disinflation processUnpredictable supply-side shocks, geopolitical tensions and spillovers to trade and commodity markets add uncertainties to the outlookMonetary policy must continue to be actively disinflationary to ensure anchoring of inflation expectations and fuller transmission, MPC said..
