The Reserve Bank of India (RBI) kept the policy interest rate and monetary stance unchanged for the seventh consecutive review meeting, citing uncertainties in food prices and leveraging robust growth prospects. Governor Shaktikanta Das emphasized India s relative economic stability amidst global challenges, urging sustained efforts to maintain low inflation.
RBI s decision to keep lending rates unchanged presents EMI-dependent homebuyers and those waiting on the sidelines to fulfill their home-ownership aspirations
The market response to the RBI policy was muted as investors shift focus to global developments like the evolving likelihood of a US Federal Reserve rate cut in June and fluctuations in commodity prices.
The policy was on expected lines and turned out to be a non-event for the markets barring the realty sector with stocks gaining up to 7%. Following the policy experts came out with their views on the policy and its impact on equity and bond markets.
The index remained sideways throughout the session, reflecting a pause in the market trend, following the formation of a hanging man pattern. The sentiment may continue to remain sideways due to the lack of a directional breakout or pattern formation.