New Delhi, February 2024.
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) has kept repo rates unchanged at 6.5 percent. It has also decided to remain focused on the withdrawal of the accommodative stance, Governor Shaktikanta Das said. This is the sixth consecutive unchanged decision and comes after the Interim Budget was announced on February 1, 2024.
Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank said, “RBI has retained rates and stance in expected lines. Further, the focus on necessity of inflation to settle closer to 4% remains intact suggesting RBI continues to remain cautious on inflation. We continue to expect RBI to fine tune liquidity conditions to manage the overnight to inch towards the repo rate. The change in stance could follow towards end of 1QFY25 and subsequently shallow rate cuts starting in 2HFY25.”
As inflation nears RBI’s 4 per cent goal, there is room for monetary easing in coming quarters, AU Small Finance Bank
RBI MPC Meeting 2024 Live: “RBI’s policy was on expected lines with focus on bringing inflation towards targeted range of 4 per cent. Monetary policy stance and steady rates over last one year have helped maintain healthy growth momentum while lowering inflationary pressures. Going forward we believe as inflation nears RBI’s 4 per cent goal, space for monetary easing would open up in the coming quarters, to support lower interest rates and credit demand,” said Uttam Tibrewal, Executive Director, AU Small Finance Bank