Number Theory: What's behind RBI's decision to hold rates
MPC’s latest GDP growth projections for quarters ending December 2023 and March 2024 now stand at 6.5% and 6% compared to 6% and 5.7% projections in its October
The Monetary Policy Committee (MPC) of the Reserve Bank of India has not made any change to the basic contours of monetary policy in its last meeting for 2023. The policy rate has been retained at 6.5% and the stance of monetary policy continues to be focused on withdrawal of accommodation. Both of these decisions are in line with expectations. Here are three charts which explain the rationale behind the MPC’s course.