RBI MPC October 2023: This is the fourth time in a row that the central bank has paused the key interest rates.
The RBI’s monetary policy committee on Friday decided to keep the repo rate unchanged at 6.5 per cent unanimously. This is the fourth time in a row that the central bank has paused the key interest rates.
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Presenting the fourth bi-monthly monetary policy of FY24, RBI Governor Shaktikanta Das on Friday said, “Our monetary policy remains aligned to focus on 4 per cent inflation target.”
The RBI MPC also kept the SDF unchanged at 6.25 per cent, and MSF and Bank Rates maintained at 6.75 per cent. The SDF is the lower band of the interest rate corridor, while the MSF is the upper band.
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Das said India is poised to become the new growth engine of the world. The external sector remains manageable. The twin balance sheet problem has now turned into a twin advantage. “However, we need to be vigilant. Risks and vulnerability can grow even during good times.”
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“Macroeconomic stability and inclusive growth are the fundamental principles underlying our country’s progress. The policy mix that we have pursued during recent years of multiple and unparalleled shocks has fostered macroeconomic & financial stability…The twin balance sheet stress that was encountered a decade ago has now been replaced by a twin balance sheet advantage with healthier balance sheets of both banks and corporates,” he said.
