The monetary policy stance continues to be 'withdrawal of accommodation'; RBI MPC also keeps SDF unchanged at 6.25 per cent, RBI MPC Keeps Repo Rate unchanged At 6.5% For 7th Time
Equity markets were cautious but unfazed by RBI MPC decision to keep repo rate unchanged for the 7th time in a row, with an unwavering focus on containing inflation. Robust economic outlook, improving consumption and investment may support markets, albeit with caution over inflation, said experts.
The headwinds from protracted geopolitical tensions and increasing disruptions in trade routes, however, pose risks to the outlook, Reserve Bank Governor Shaktikanta Das said while unveiling the first bi-monthly monetary policy of the current fiscal.
The policy review committee decided to keep repo rate unchanged for the seventh time in a row and said that it remains vigilant towards upside risks to food inflation. It has projected CPI inflation at 4.5 percent and GDP at 7 percent for FY25