RBI keeps repo rate unchanged: A policy addressing market microstructure

In all, the policy has travelled considerable space in addressing the emerging issues in financial services

The Monetary Policy Committee (MPC) kept the rates and policy stance unchanged.

 

The MPC reiterated its commitment to restoring the balance between inflation and growth in the overall interest of the economy.

 

The cut in cash reserve ratio (CRR) was not a part of the policy document.

 

The policy has some key takeaways. The real gross domestic product (GDP) forecast for FY25 has now been revised to 6.6 per cent.

 

This downward revision is nothing new as the Reserve Bank of India’s (RBI’s) growth projections in FY22 and FY23 were revised downwards in October on an average by 90 basis