Mumbai, Feb 6 || RBI Governor Sanjay Malhotra announced on Friday that the Monetary Policy Committee has unanimously decided to keep the policy repo rate unchanged at the current level of 5.25 per cent and stick to the neutral monetary policy stance.
The RBI Governor said that the decision to maintain the status quo in the policy rate had been taken after careful consideration of the macroeconomic conditions and the outlook for the economy ahead.
He said that since the last monetary policy meeting in December, global headwinds have intensified, but the trade deals signed by the government augur well for the economy going ahead.
Malhotra further stated that the RBI has decided to stick to a “neutral policy stance”.
A neutral stance requires neither stimulation nor curbs on liquidity as it strikes a fine balance between controlling inflation without hurting growth. The RBI has been sticking to the neutral stance as it was waiting for the earlier monetary policy easing to still play out, and the unfolding of trade-related implications.