RBI Governor On Hold On Interest Rates


The committee will act on the rates as and when necessary, Shaktikant Das said. (File)


Reserve Bank Governor Shaktikanta Das today made it clear that the decision to hold rates should be seen as a pause, and not as a pivot.

The rate-setting Monetary Policy Committee (MPC) will act on the rates as and when necessary, Shaktikanta Das said.

“If I have to characterise today’s monetary policy in just one line…it’s a pause, not a pivot,” Shaktikanta Das told reporters in the customary interaction with reporters after the announcement of the policy review.

Earlier in the day, the six-member MPC voted unanimously to keep the repurchase or repo rate unchanged at 6.50 per cent, surprising analysts who were expecting the central bank to make a final 25 basis points hike before opting to pause.

Shaktikanta Das said RBI is keen to assess the cumulative impact of the rate actions done till now. There has been a cumulative hike of 250 basis points since May 2022.

Deputy Governor Michael Patra said RBI has marginally upped its FY24 growth estimate to 6.5 per cent primarily on assumption of a decline in the average oil price to $85 per barrel as against $90 per barrel earlier.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Source: www.ndtv.com


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