Interest Rate Unchanged: The RBI decided to keep the benchmark interest rate unchanged at 6.50%, aligning with market expectations.
Inflation Target: Governor Das emphasized that the RBI remains resolutely focused on aligning inflation with the 4% target on a durable basis.
Liquidity Management: The governor acknowledged the need for liquidity management consistent with the monetary policy stance.
Currency in Circulation: With the upcoming festive season, currency in circulation is expected to rise, which may affect liquidity.
Gold Loan Limit: The RBI doubled the gold loan limit for urban cooperative banks to Rs 4 lakh, with specific conditions related to Priority Sector Lending targets.
Global Factors: Despite rising bond yields in the USA, India's sizable forex reserves and RBI interventions help insulate the country from external shocks.
Monetary Stance: At present, the RBI's stance remains the withdrawal of accommodation, and the timing of a change in stance to neutral will depend on the evolving economic situation.
Economic Outlook: The RBI Governor expressed optimism about the Indian economy, citing positive indicators such as increased car sales, cement production, and airline traffic.