This is a pause, not a pivot: RBI on not increasing repo rate

NewsDrum Desk
06 Apr 2023
RBI Reserve Bank of india Shaktikanta Das M.K. Jain

Reserve Bank of India (RBI) Governor Shaktikanta Das with Deputy Governor M.K. Jain during a press conference in Mumbai

Mumbai: Reserve Bank Governor Shaktikanta Das on Thursday made it clear that the decision to hold rates should be seen as a pause, and not as a pivot.


The rate-setting Monetary Policy Committee (MPC) will act on the rates as and when necessary, Das said.

"If I have to characterise today's monetary policy in just one's a pause, not a pivot," Das told reporters in the customary interaction with reporters after the announcement of the policy review.

Earlier in the day, the six-member MPC voted unanimously to keep the repurchase or repo rate unchanged at 6.50 per cent, surprising analysts who were expecting the central bank to make a final 25 basis points hike before opting to pause.

Das said RBI is keen to assess the cumulative impact of the rate actions done till now. There has been a cumulative hike of 250 basis points since May 2022.

Deputy Governor Michael Patra said RBI has marginally upped its FY24 growth estimate to 6.5 per cent primarily on assumption of a decline in the average oil price to USD 85 per barrel as against USD 90 per barrel earlier.