RBI has a tricky task on its hands in balancing credit needs at stable interest rates to meet the demands of industry and consumers. This might lead to inflationary forces gaining momentum
The Monetary Policy Committee's pause and it's commentary on inflation appears to suggest that the central bank is unlikely to pivot soon.
India's MPC decided to keep the benchmark repo rate unchanged for the second straight meet, even as it emphasised the need to bring inflation closer to the target of 4%.
Economic activity is set to remain resilient, while inflation pressures will ease in FY24, the central bank said, reaffirming its outlook for the Indian economy amid continuing global headwinds.
The meeting was also attended by M Rajeshwar Rao, Deputy Governor and Executive Directors, S C Murmu, Saurav Sinha, Jayant Kumar Dash and Neeraj Nigam respectively with a few other senior officials of the RBI, , the reserve bank of india, shaktikanta das, Urban Co-operative Banks (UCBs), Meetings, CEOs of Primary UCBs