RBI Monetary Policy October 2023: Repo rate left unchanged at 6.5%

RBI MPC Meet October 2023: For the fourth time in a row, the Reserve Bank of India Monetary Policy Committee has kept the repo rate unchanged at 6.5% and the withdrawal of accommodation stance has been maintained.

Repo Rate remains Unchanged

The Standing Deposit Facility and Marginal Standing Facility rates also left unchanged at 6.25% and 6.75% respectively.

During the credit policy announcement, RBI governor Shaktikanta Das cautioned on the need to remain vigilent towards inflation as this might be a major risk to macroeconomic policy & growth.

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RBI Monetary Policy Meet October 2023: Economic Projections

Shaktikanta Das Announcement: The RBI Governor has mentioned that the monetary policy focus remains to align inflation at the 4% target. The CPI inflation forecast for FY24 is retained at 5.4%. RBI's GDP growth projection has been kept unchanged at 6.5% for 2023-24.

Since May 2022, the central bank has raised the repo rate by 250 basis points which the governor says is still working through the economy.