NEW DELHI: In the latest developments emerging from the Reserve Bank of India's Monetary Policy Committee (MPC) meeting held in August 2023, Governor Shaktikanta Das announced that the repo rate would remain unchanged at the rate of 6.50 percent. Furthermore, Governor Das indicated that the central bank would maintain its stance on withdrawing accommodation, opting to keep it unchanged.

Anticipation had been building prior to Governor Das' eagerly awaited MPC statement, with financial experts widely speculating that the central bank would opt to retain the repo rate at the existing level of 6.50 percent. Confirming these expectations, the MPC committee came to a unanimous decision to maintain the policy repo rate at 6.50 percent, as announced by Governor Shaktikanta Das. Additionally, the Reserve Bank of India will continue to uphold its unaltered approach to withdrawing accommodation.

Governor Das is also expected to sustain the ongoing accommodative stance. In an analysis presented by the State Bank of India, it was suggested that at the current rate of 6.50 percent, a prolonged period of stability is likely as the seasonal aspects of inflation are predicted to subside. The report also highlighted that the likelihood of a shift in stance from accommodation withdrawal to neutrality is minimal.

The RBI's policy meeting for this month transpired over the period of August 8th to 10th, encapsulating discussions and considerations on these critical matters.

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