Quote RBI MPC Policy Shriram General Insurance

As expected MPC voted to keep the repo rate unchanged at 6.50% and retained its stance as withdrawal of accommodation.  However, this time two out of six members (Dr. Goyal and Prof. Varma) voted for 25bps cut and change in stance to neutral. Overall policy remains cautious with uncertainty on food inflation outlook. The heatwave conditions and low reservoir levels have added to food inflation risks. Monetary policy remains ‘squarely focused on inflation’, with strong growth providing policy space to remain on pause.