Finance & Economy | News & Insights

RBI Delivers Hawkish Pause Again, Raises Inflation Projection

Published: August 14, 2023
Author: TEXTILE VALUE CHAIN

Highlights:

  • RBI left the policy repo rate unchanged at 6.5% for the third consecutive meeting.
  • Policy stance maintained at ‘withdrawal of accommodation’ amid inflationary concerns.
  • Policy tone displayed a more hawkish inclination compared to the previous two meetings.
  • FY24 inflation projection revised higher by 30 bps to 5.4%.
  • FY24 growth projection retained at 6.5%. 
  • A temporary provision of incremental cash reserve ratio for SCBs was introduced to manage liquidity.
  • Amid lingering inflationary concerns, the RBI could opt for an extended pause accompanied by a hawkish stance.
  • The expectation of a rate cut is likely deferred to the next fiscal year.

Monetary_Policy_Outcome_-_August_2023

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