Mumbai, October 9, 2024: In a move that underscores the Reserve Bank of India’s (RBI) measured approach to monetary policy, the central bank has once again kept the benchmark repo rate unchanged at 6.5% for the tenth consecutive time. This decision reflects the RBI’s strategic balancing act between fostering economic growth and managing inflationary pressures, amidst both global and domestic challenges.
Commenting on the RBI’s stance, Mr. Sanjaya Mariwala, President of the IMC India, stated:
“RBI’s decision to keep the benchmark repo rate unchanged at 6.5% for the tenth time consecutively reflects a tactical balance between growth imperatives and the necessity of controlling inflation. The neutral stance demonstrates vigilance towards inflationary pressures while remaining sensitive to the potential impact on growth momentum.”
Mr. Mariwala emphasized that the cautious approach taken by the RBI is particularly critical in the current economic environment, marked by global uncertainties and domestic obstacles that could potentially slow India’s economic recovery. He added:
“This cautious approach is particularly relevant given current global uncertainties and domestic challenges that could hinder economic recovery.”
With the repo rate unchanged, stability and confidence are expected to be restored in the markets, giving businesses the confidence to allocate capital more effectively. Mr. Mariwala further highlighted the benefits for businesses, noting that the RBI’s decision could promote trade and foster sustainable growth and investment opportunities across sectors.
As India navigates a volatile global economic landscape, the central bank’s focus on both inflation and growth is seen as a strategic move to ensure long-term economic stability and momentum.
About IMC India:
The IMC India is a leading chamber of commerce that promotes trade and industry in India, offering platforms for advocacy and dialogue on key economic and business issues.
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