RBI� kept rates unchanged and policy stance tight with liquidity in deficit mode. Given strong government finances, fiscal deficit is expected to fall next year and will be guided lower by the government� and this will enable rates to stay stable. Long end gsecs will benefit from stable rates and falling inflation expectations.����
RBI monetary policy meeting highlights:
● MPC left repo rate unchanged at 6.5%
● Average CPI forecast for Fy24 unchanged at 5.4%
● GDP real growth projection for Fy24 to 7% from 6.5% earlier
● MSF & SDF rates unchanged at 6.75% & 6.25% respectively
● Food inflation for November & December to rise
