Finance
RBI Monetary Policy Announcement Today: The Reserve Bank of India’s Monetary Policy Committee on Friday unanimously decided to keep the key interest rates unchanged at 6.50 per cent. The RBI MPC, led by Governor Shaktikanta Das, concluded a three-day meeting on April 3 and announced the committee’s judgment.
RBI Governor Shaktikanta Das said the MPC voted in favour of keeping the key lending rates unchanged. “After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, the Reserve Bank MPC decided by a majority of 5 to 1 to keep the policy repo rate unchanged at 6.50%,” Das said. The policy stance is also maintained at ‘withdrawal of accommodation’, said Shaktikanta Das.
This is the seventh straight time that the central bank’s 6-member Monetary Policy Committee (MPC) has decided to keep the key policy rates unchanged.
The choice was essentially consistent with economist predictions.
In his announcement on monetary policy, Das stated that maintaining the 4% inflation objective in the face of strong growth remains the top aim for monetary policy.
He also emphasized how important it is that the monetary policy continue to be vigorously disinflationary at this point.
The MPC kept the status quo on track, according to Kotak Mahindra Bank chief economist Upasna Bhardwaj, who spoke with news agency Reuters. “While low core inflation provides comfort, the uncertainty on food inflation remains a worry,” she stated.
“Further, the higher US yields, higher oil prices and other commodities along with possible delay in Fed’s rate easing cycle will keep the MPC wary. Accordingly, we do not see much scope for any rate easing until the second quarter of FY25,” Bhardwaj added.
Swati Saxena, Founder & CEO of 4 Thoughts Finance, a wealth management firm, said, “The industry overall wants policy stability and predictability above all else and a consistent maintenance of the repo rate indicates that the RBI is content with the existing level of interest rates.”
“Going ahead, we remain optimistic that the RBI will contemplate rate cuts and build shallow rate cut cycle from June onwards to support lower interest rates and credit demand. Overall, we believe that investor sentiment will continue to remain bullish, supported by the market’s persistent strength,” Saxena added.
