The central bank kept the benchmark repo rate unchanged at 6.50%.As per RBI, the two guiding factors for the pause were the need to assess the impact of monetary tightening delivered so far and the recent global financial stability concerns.
it also sees that it has eased. and jerome powell declared that the disinflation process has begun and he is pleased to see the prices are cooling off. also during the press conference powell didn t really seem bothered by the january boom in financial markets even though soaring stock prices actually makes it harder for the fed to cool off inflation. markets seemed to like what powell had to say. but powell did still talk tough about inflation, he said that it is way too premature to declare victory. and listen to this clip. it is very difficult to manage the risk of doing too little and finding out in 6 or 12 months that we actually were close but didn t get the job done. inflation springs back and we have go back in. and now you really do worry about expectations getting up an cored and that kind of thing. this is a very difficult risk to manage.ancored and that kind of. this is a very difficult risk to manage.
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