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    RBI keeps repo rate unchanged, maintains focus on withdrawal of accommodation; market steady

    Synopsis

    Equity markets were largely steady after the policy outcome. Both Sensex and Nifty 50 were up 0.1% each at 63,221.02 points and 18,749.15 points, respectively. The Nifty Bank index was 0.2% up at 44,382.15 points.

    RBIAgencies
    MUMBAI - In line with the market expectations, the Reserve Bank of India on Thursday left the repo rate unchanged at 6.50%.

    Further, the central bank retained its policy stance of focussing on “withdrawal of accommodation”. The MPC panel unanimously voted in favour of pausing rate hikes, while 5 out of 6 members backed the decision to retain the policy stance.

    Equity markets were largely steady after the policy outcome. Both Sensex and Nifty 50 were up 0.25% each at 63,301.39 points and 18,774.10 points, respectively. The Nifty Bank index was 0.2% up at 44,382.15 points.

    While the pace of monetary policy tightening has slowed across the globe in recent months, uncertainty remains on the future trajectory of policy tightening, RBI Governor Shaktikanta Das said.

    On the domestic front, macroeconomic fundamentals are strengthening, but the outlook on monsoon and the potential impact of El-Nino conditions remain uncertain.

    Therefore, it is important for the central bank to remain vigilant on the evolving situation, Das said, explaining the rationale for retaining its policy stance.

    The MPC decided to retain the policy stance to ensure inflation progressively aligns to the target while supporting growth, he said.





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    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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