On Thursday’s meeting, the second for FY24, the MPC of the RBI announced its unanimous decision to keep the policy repo rate unchanged at 6.5 per cent. The MPC also resolved to continue with its stance of ‘withdrawal of accommodation’ with a 5-1 majority. Both these decisions, as also the corresponding voting patterns, were identical to those of its April meeting. In view of this, the possibility of another hike in the policy rate in this cycle cannot be ruled out. This framework can deliver provided both the RBI and the political leadership agree that inflation is bad.

Source: The Hindu June 09, 2023 09:17 UTC