The Reserve Bank of India(RBI) surprised the street pleasantly by keeping rates stable on the borrowing and lending front. The message was clear, growth needs all the support it can get.
• RBI voted to keep repo rate unchanged at 4% (unanimously)
• RBI keeps reverse repo rate unchaned as well
• Accommodative stance retained by 5-1 vote.
• High frequency indicators show slowdown in business
• RBI sees FY23 growth at 7.8%
• Expect food prices to continue edging lower
• Rising crude prices pose significant problem
• RBI asserts - Continued policy is warranted for broad based recovery
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