6.5% repo broadly balanced: RBI Guv

Mumbai: The current policy rate of 6.5 per cent is broadly balanced, and any justification for policy easing at this juncture can be misleading, Reserve Bank Governor Shaktikanta Das opined while voting for the status quo on the repo rate in the MPC, where two members advocated rate cut.

The meeting of the Monetary Policy Committee (MPC), which decides on the policy rate, was held from August 6 to 8. On August 8, the Reserve Bank of India (RBI) announced to keep the benchmark interest rate unchanged for the ninth time in a row, saying it cannot afford to look through persisting high food inflation and has to remain vigilant to prevent spillover. According to the minutes of the last Monetary Policy Committee (MPC) released by the RBI on Thursday, the calibrated increase in policy repo rate by 250 basis points since May 2022 and subsequent change of stance to the withdrawal of accommodation have facilitated gradual disinflation over 2022-23.

RBI asks FIs to support MSMEs

Reserve Bank Deputy Governor Swaminathan J has asked financial institutions (FIs) to adopt a more sensitive and empathetic approach towards MSMEs, and deploy supportive measures like restructuring options for loans, to support the sector which plays a key role in the economy.