- Title: India cenbank holds rates, shifts stance to 'neutral' signaling rate cuts ahead
- Date: 9th October 2024
- Summary: BUENOS AIRES, ARGENTINA (OCTOBER 9, 2024) (REUTERS) RIOT POLICE OFFICERS PUSHING PROTESTERS PROTESTERS SCREAMING AT POLICE OFFICERS VARIOUS OF PARAMEDICS TREATING PROTESTERS AFFECTED BY PEPPER SPRAY VARIOUS OF POLICE OFFICERS ESCORTING ARRESTED PROTESTER AND OFFICERS PUSHING REPORTERS AND DEMONSTRATORS VARIOUS OF POLICE OFFICERS ESCORTING PRESIDENT JAVIER MILEI'S SUPPORTER
- Embargoed: 23rd October 2024 07:40
- Keywords: India Monetary Policy Committee Mumbai economy global economy growth inflation neutral repo rates retail inflation
- Location: MUMBAI, MAHARASHTRA, INDIA
- City: MUMBAI, MAHARASHTRA, INDIA
- Country: India
- Topics: Asia / Pacific,Economic Events
- Reuters ID: LVA007KVJ37M7
- Aspect Ratio: 16:9
- Story Text: The Reserve Bank of India (RBI) kept its key interest rate unchanged on Wednesday (October 9) as widely expected, but changed its policy stance to "neutral", opening the door for rate cuts as early as December.
The Monetary Policy Committee (MPC), which consists of three RBI and three external members, kept the repo rate unchanged at 6.50% for a tenth straight policy meeting.
The committee, however, changed its policy stance to "neutral" from "withdrawal of accommodation".
The committee voted unanimously to change the stance but said they will remain unambiguously focused on the durable alignment of inflation to target while supporting growth.
Five out of six members vote in favour of holding rates. Newly appointed external member of the committee Nagesh Kumar voted to cut the policy rate by 25 basis points.
"It is with a lot of effort that the inflation horse has been brought to the stable - that is closer to the target," Reserve Bank of India governor Shaktikanta Das said, announcing the rate decision.
"We have to be very careful about opening the gate as the horse may simply bolt again. We must keep the horse on (a) tight leash so that we do not lose control," Das said.
India targets to keep retail inflation at 4%.
The MPC last changed rates in February 2023, when the policy rate was raised to 6.50%. It raised rates by a cumulative 250 basis points (bps) between April 2022 and February 2023, as the economy emerged from the COVID-19 pandemic and inflation took off. - Copyright Holder: ANI (India)
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