RBI keeps policy rate unchanged but raises a red flag on vegetable inflation; rate cut likely only in Apr’24
The Monetary Policy Committee (MPC) kept the repo rate unchanged at 6.5% for the third consecutive meeting, citing the fact that CPI inflation remained inside its 2-6% targeted range. However, it retained a hawkish stance of “withdrawal of accommodation” as food (especially vegetable) inflation was set to push CPI inflation up to 6.2% YoY in Q2CY23.