This is a pause, not a pivot: RBI Guv Shaktikanta Das after surprise hold in key rates

Reserve Bank Governor Shaktikanta Das on Thursday me it clear that decision to hold rates should be seen as a pause, and not as a pivot.

rate-setting Monetary Policy Committee (MPC) will act on rates as and when necessary, Das said.

"If I have to characterise today's monetary policy in just one line...it's a pause, not a pivot," Das told reporters in customary interaction with reporters after announcement of policy review.

Earlier in day, six-member MPC voted unanimously to keep repurchase or repo rate unchanged at 6.50 per cent, surprising analysts who were expecting central bank to make a final 25 basis points hike before opting to pause.

Das said RBI is keen to assess cumulative impact of rate actions done till now. re has been a cumulative hike of 250 basis points since May 2022.

Deputy Governor Michael Patra said RBI has marginally upped its FY24 growth estimate to 6.5 per cent primarily on assumption of a decline in average oil price to USD 85 per barrel as against USD 90 per barrel earlier.