Team Blitz India
MUMBAI: The monetary policy committee of the Reserve Bank of India (RBI) in its October review meeting unanimously decided to keep the policy repo rate unchanged at 6.5 per cent, thus maintaining status quo for the fourth straight occasions.
While deliberating the policy statement, RBI Governor Shaktikanta Das said the central bank is concerned and it has identified high inflation as a major risk to macro-economic stability and sustainable growth.
Das added the monetary policy committee is committed to align India’s headline inflation at 4 per cent level.
Also, the governor noted 5 out of the 6 MPC members are for remaining focused on ‘withdrawal of accommodation’ in monetary policy stance so as to ensure the inflation progressively aligns with the target, while supporting growth.
The three-day bi-monthly monetary policy committee (MPC) meeting of the RBI began on September 4, with financial market participants closely monitoring the outcome and the policy stance of the central bank for fresh cues.
Typically RBI conducts six bi-monthly meetings in a financial year, where it deliberates interest rates, money supply, inflation outlook, and various macroeconomic indicators.