The decision was announced by RBI Governor Sanjay Malhotra Wednesday during the Monetary Policy Committee meet, after reviewing the latest economic and financial conditions.
The Nifty 50 was up 0.30% at 17,610.20 as of 11:01 a.m. IST, while the S&P BSE Sensex rose 0.32% to 59,882.93. Both benchmarks had fallen 0.3% ahead of the RBI's rate decision.
The 10-year benchmark 7.26% 2032 bond yield was at 7.1987% as of 10:35 am IST, after closing at 7.2750% Wednesday. The yield fell to 7.1469% after the decision, against 7.2857% before that.
RBI said it stood ready to act against inflation if conditions warranted, with Governor Shaktikanta Das saying the decision to pause was 'for this meeting only', signalling further rate hikes were still possible.
While saying that higher interest rates affect growth more than inflation, the two members said raising rates further could result in 'unacceptably low' growth in 2023-24.
Although RBI has been raising repo rate to contain rising inflation & lending, it hasn't discouraged borrowers. The growth in credit could partly be attributed to ‘pent up demand’.
RBI Governor Shaktikanta Das says recent surge in infections has lent greater uncertainty to growth outlook, and warns regional lockdowns could dampen recent improvement in demand.
Compulsion magnifies the risk of function creep. Future updates could quietly expand the app’s capabilities or enable background telemetry far beyond users’ expectations.
Order for 87 MALE drones will be split between 2 Indian firms in 64:36 ratio to ensure there are 2 independent manufacturing lines with at least 60% indigenous components.
The India-South Africa series-defining fact is the catastrophic decline of Indian red ball cricket where a visiting team can mock us with the 'grovel' word.
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