New Delhi: The Reserve Bank of India announced its fourth bi-monthly monetary policy today, concluding the three-day meeting of RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) meeting that began on October 4.
“Monetary Policy Statement, 2023-24 Resolution of the Monetary Policy Committee (MPC) October 4 to 6, 2023”, tweeted Reserve Bank of India.
The repo rate remains unchanged at 6.5% and stance of withdrawal of accommodation, was announced the Central Bank. While the status quo on policy rates and the stance of its monetary policy has been maintained, the monetary policy focus remains to align inflation at 4% target.
The MPC’s monetary policy is unlikely to impact the markets as no changes are expected in policy rates. From the market perspective, if the US jobs data that is expected tonight comes strong, the market will react negatively discounting a rate hike by the Fed.
The Indian economy is forging ahead in a challenging global environment, drawing strength from its underlying macroeconomic fundamentals and buffers. While growth remains on track, the declining trend in inflation was interrupted in July and August. Moreover, the volatile food and energy prices in the wake of lingering geopolitical tensions and adverse weather conditions render uncertainty to the inflation outlook.