RBI Monetary Policy October 2023: RBI Keeps Interest Rate Unchanged For 4th Time

RBI Monetary Policy October 2023: The three-day MPC meeting Chaired by RBI Governor Shaktikanta Das, commenced on October 4 and is set to conclude today.

New Delhi: The Reserve Bank of India (RBI) announced the outcome of the Monetary Policy Committee (MPC) decision on Friday, keeping the repo rates unchanged at 6.5 percent. This is the fourth bi-monthly monetary policy of the RBI for the ongoing fiscal.

The three-day MPC meeting Chaired by RBI Governor Shaktikanta Das, commenced on October 4 and concludeed today.  Announcing the MPC's decision Das said that the committee has unanimously decided to keep the repo rate at 6.5 percent.

The RBI Governor added that Das said that considering the economic factors, the MPC has estimated the GDP growth rate to be 6.5 percent in the financial year 2024.

"As far as inflation rate is concerned, the MPC's forecast is 5.4 per cent for 2023-24, taking into account various domestic issues including potential agricultural output," he added.

In its last Monetary Policy on August 10, the RBI kept the repo rates unchanged at 6.5 percent. The Monetary Policy Committee (MPC) of the central bank unanimously decided to take a consecutive pause in its second bi-monthly monetary policy meeting of FY24 after a rate hike seen in previous six consecutive policies. This was for the third consecutive time that the RBI has paused the interest rates. 

A year is divided into six bimonthly reviews of the central bank's monetary policy. Additionally, there are out-of-cycle reviews, where the central bank holds extra sessions in urgent situations.