RBI maintains calm against global noise

The Reserve Bank of India’s bi-monthly monetary policy orchestrated on 8th August 2024 ensured that the “elephant” was deep in the forest before changing the policy. The RBI’s Monetary Policy Committee voted with 4:2 to keep the policy repo rate and stance unchanged at 6.50% and “withdrawal of accommodation” respectively. Like last policy, the two of the external MPC members, Prof. Jayanth Varma and Dr. Ashima Goyal voted to reduce the policy repo rate by 25 basis points and change in stance to “neutral”. The RBI was cautious in its policy rate and stance as any hasty decision may jeopardise the good work done so far on inflation front.