Monetary Policy LIVE Updates: The Reserve Bank of India’s Monetary Policy Committee (MPC) has kept Repo Rate unchanged at 4%. It has maintained “Accomodative” stance.
The voted unanimously to hold rates steady, RBI Governor Shaktikanta Das said. Most analysts had expected the monetary policy committee (MPC), which sets the key policy rates in India, to retain the rates this week after the three-day meeting (December 2-4).
Inflation and growth are the key factors that decide the course of monetary policy. The rate panel takes a view looking at the growth-inflation dynamics. To put it in simply, higher inflation warrants, typically, a tighter monetary policy (hike in key rates) whereas falling economic growth calls for lower interest rates.
The idea is lower rates spur demand and economic activity.
News Source:- Moneycontrol