Monetary policy review: A cautiously dovish, par-for-the-course policy

In his interaction with the media, Das described the CRR cut as "normalisation" of its level. It was raised to 4.5 per cent in April 2022 when the last policy-tightening cycle started

“It’s all about managing expectations.” That’s what Reserve Bank of India (RBI) Governor Shaktikanta Das said while settling down for the customary post-policy interactions with the media on Thursday.

 

The monetary policy, Das’ last before his current term ends next week, managed the expectations quite well. Those who were expecting a rate cut would be disappointed, but it was par for the course overall.

 

The RBI’s monetary policy committee has left the repo rate unchanged at 6.5 per cent but cut the cash reserve ratio (CRR) or the portion of deposits that commercial banks keep with the central bank by