RBI keeps repo rate unchanged at 6.5%; risks evenly balanced: Governor Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday announced the bi-monthly monetary policy for the financial year 2023-24.

“After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, RBI’s Monetary Policy Committee decided unanimously to keep the Policy Repo Rate unchanged at 6.5%,” Das said.

Das’ announcement came after the RBI’s six-member Monetary Policy Committee (MPC) held a meeting from October 4 to 6.

He added that retail inflation is projected at 5.4% for 2023-24 with the second quarter at 6.4%, Q3 at 5.6% and Q4 at 5.2%. “The risks are evenly balanced,” the governor pointed out.

“Headline inflation had surged in July driven by tomato and other vegetable prices. It corrected partly in August and is expected to see further easing in September on the back of moderation of these prices,” the governor said.