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RBI Monetary Policy Review - August 2024

Repo Rate unchanged at 6.50 per cent.
09 August 2024
    Local Market Commentary
    Download the full reportPDF, 406.47KB

    RBI Monetary Policy Review - August 2024

    RBI MPC maintains a steady hand even as global central banks mull sharper rate cuts.

    In an environment where global central banks have been in the spotlight, the RBI announced its monetary policy committee (MPC) decision. Not surprisingly, in a low-key outcome, the MPC maintained status quo, along with a continuing hawkish line to keep market expectations of any sharp easing actions under check.

    Monetary Policy stance was retained at “withdrawal of accommodation”, which some participants were hoping would be changed at least to neutral. The markets initially reacted a tad negatively, with yields moving up 2-3 bps, but recovered later due to absence of any liquidity draining measures. Yields across all tenors remained broadly unchanged over the day.

    With this Policy being a non-event as we had expected, we focus on the key issues which can influence RBI’s monetary policy course over the coming 6-8 months and discuss our interest rate outlook.

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