MPC keeps repo rate unchanged; changes stance to neutral

The Monetary Policy Committee (MPC) kept the policy repo rate unchanged at 6.50 per cent at its bi-monthly meeting by a majority of 5 out of 6 members.

The MPC, however, unanimously decided to change the policy stance to neutral from withdrawal of accommodation even as it decided to remain unambiguously focused on inflation target. This could be a precursor to a rate cut in February, say experts.

• Also read: RBI MPC unlikely to change rates, may change stance to neutral: Economists

Going forward the moderation in headline inflation could reverse, RBI Governor Shaktikanta Das said.

India’a growth story remains intact as the primary drivers’ consumption and investment are gaining momentum.

The Monetary Policy Committee (MPC), with three new external members, met on 7th, 8th and 9th October 2024.