Statsguru: RBI takes a breather, maintains status quo on policy rates

On the growth front, with the recent data shows that industrial production is maintaining its growth momentum, RBI has retained its GDP growth projection for 2018-19 at 7.4%

Contrary to expectations, the monetary policy committee (MPC) voted to keep the benchmark repo rate unchanged in its latest meeting. With the six-member committee voting five to one to maintain the status quo, the repo rate stands at 6.5 per cent as seen in Chart 1.

While the recent data showed that the inflation rate had moderated with the consumer price index printing at 3.69 per cent in August (Chart 2), economists were concerned about the upside risks to inflation stemming from the rise in crude oil prices and the rupee’s sharp fall. 

As seen in Chart 3, crude oil prices have