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.
