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 current repo rate is 6.50%, which was last updated on February 8, 2023. Since then the RBI decided to keep the rate unchanged. The last time the repo rate was changed from 6.25% to 6.50% in February 2023.
The RBI Monetary Policy outcome could create minor volatility in the market on February 8, according to analysts. And, hint of a rate cut in near future from Governor Shaktikanta Das may set off a fresh rally in equities
The MPC decided to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth. The RBI has been holding rates since February
The RBI, since the beginning of the tightening cycle in May 2022, has been talking about focusing on the withdrawal of accommodation. Nearly 17 months later, the situation is hardly what the RBI wanted: By September-end, core liquidity was ₹2.8 lakh crore and that is set to rise to ₹3.3 lakh crore with the total withdrawal of the Incremental Cash Reserve Ratio