RBI leaves repo rate unchanged; retains “withdrawal of accommodation” stance
RBI maintains 6.50% repo rate after 3-day meeting, focusing on withdrawing accommodation. Supported by 5 of 6 MPC members. Minimal market impact on Sensex, Nifty 50.
MUMBAI - The on Friday left the unchanged at 6.50% following the conclusion of its three-day meeting. This is the seventh consecutive time the has left untouched.The of the central bank also retained its stance of remaining focussed on “withdrawal of accommodation.”
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The decision to leave rates unchanged as well as stand by the stance was voted by five of the 6-member panel.
The monetary policy action was on expected lines, and therefore, Dalal Street was largely unmoved by the outcome.
The and Sensex were trading 0.2% down at 22,474 points and 74,097 points, respectively.
While the core inflation has steadily come down over the past nine months, consumer price inflation remains volatile amid upside risks to food prices. The consumer price inflation eased slightly to 5.09% in February from 5.10% in January, but remains above the RBI’s target of
4%.
As a result, the MPC felt the need to leave the rates unchanged and also stick to its policy stance.
“We have policy space to let inflation align to the 4% target,” Governor Shaktikanta Das said.
Source: Stocks-Markets-Economic Times
