RBI MPC Meeting : This time also the Reserve Bank of India has kept the key interest rates unchanged. RBI has not made any change in the main interest rate i.e. repo rate. RBI Governor and MPC Chairman Shaktikanta Das gave this information while announcing the decisions of the MPC today. The meeting of the Monetary Policy Committee of RBI started from Monday. Earlier this month, the government had reconstituted the Monetary Policy Committee (MPC), the rate-setting committee of the Reserve Bank of India. This time the reconstituted committee has held this meeting with three newly appointed external members. The Reserve Bank of India has kept the repo rate unchanged at 6.5 percent from February 2023.
Policy stance made neutral
RBI Governor Shaktikanta Das said that in the MPC meeting, it has been decided to keep the repo rate unchanged at 6.5 percent. Also the policy stance has been made neutral. RBI Governor said that the GDP growth rate in the first quarter is estimated to be 6.7 percent. The Governor said that manufacturing is showing signs of slowing down.
Market boomed after RBI's decision
There has been a positive response from the stock market on the decision of RBI. Bombay Stock Exchange index Sensex jumped 500 points. At the same time, Nifty of National Stock Exchange jumped 150 points.
Estimated growth rate of 7.2% this year
control on inflation
The RBI Governor said that due to good Kharif area and good rainfall, the pressure of food inflation has reduced. He said, 'It seems that the core inflation rate has come down to the lowest level.'
What are experts saying
Santosh Meena, head of research at Swastika Investmart, said, 'RBI has announced a balanced monetary policy, choosing to keep interest rates unchanged. Also, RBI has chosen to keep its stance neutral. The RBI Governor addressed key factors such as geopolitical tensions, inflation, economic growth and risks within the NBFC sector. However, from the market point of view the MPC decisions are positive. There was no explicit mention of rate cuts, but subtle hints in the Governor's speech point towards the possibility of rate cuts in upcoming policies.' He said, 'Markets are expected to react positively, Nifty is likely to target 25,330 and 25,500 levels in the near term. Similarly, Bank Nifty can target 51,700 and 52,300 as immediate targets.
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