RBI monetary policy: Status quo on rates; stance may remain unchanged

Growth-inflation dynamics are shifting slowly, but the RBI may not be in a hurry to act amid too many uncertainties

In its August meeting, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) decided to maintain the status quo — keeping both the policy rate and stance unchanged. The Indian central bank had shown no concern over growth and no comfort on inflation, resulting in the ninth consecutive pause.

The repo rate — at which the RBI lends to banks — remained unchanged at 6.5 per cent. The stance also stayed as "withdrawal of accommodation" to ensure that inflation aligns with the target while supporting growth.

What has changed since then?

Well, the MPC