Back to Career News

Reserve Bank of India Maintains Status Quo on Repo Rate, Signals Stability and Growth

December 08, 2023

Reserve Bank of India Maintains Status Quo on Repo Rate, Signals Stability and Growth

In a significant move, the Reserve Bank of India (RBI) announced on Friday its decision to keep the repo rate steady at 6.5 per cent, marking the fifth consecutive pause in its rate-hike cycle. Top bankers commend this decision, considering it a prudent move to maintain policy consistency while previous measures are still taking effect. The prolonged pause is viewed positively for corporate India, providing a stable environment for economic activities.

The RBI’s policy announcement underscores confidence in the Indian economy, anticipating a period of stable inflation and high growth. Experts predict the economy might breach the 7% growth mark for the third successive year. The focus on liquidity measures aims to facilitate efficient fund management by banks, while the increased limits under Unified Payments Interface (UPI) for education and healthcare contribute to UPI’s emergence as a public good.

Additionally, the shift towards a unified regulatory framework for web-aggregation of loan products is expected to enhance pricing, transparency, and customer-centricity. Despite concerns about rising global oil prices and inflation, the continued pause on repo rates is seen as a positive for corporate India.

The Monetary Policy Committee’s (MPC) decision in the final quarter aligns with the governor’s intent to support economic growth and maintain resilience. The government’s efforts to drive investment, coupled with healthy corporate profits and a reduction in non-performing loans, are anticipated to keep investment buoyant. The expectation is that India’s exports will thrive, particularly in services, despite challenges. The focus remains on addressing global factors impacting inflation, emphasizing the RBI’s commitment to economic stability and growth.

Recommended for you ...

Nirmala Sitharaman Continues as Finance Minister in Modi's Third Term
Nirmala Sitharaman Continues as Finance Minister in Modi's Third Term

June 11, 2024

BFSI Industry Shares Expectations from New Government
BFSI Industry Shares Expectations from New Government

June 11, 2024

RBI Keeps Repo Rate Unchanged for Eighth Time in a Row
RBI Keeps Repo Rate Unchanged for Eighth Time in a Row

June 11, 2024

Chat on WhatsApp