The Reserve Bank of India (RBI) has not changed the rates and has retained the repo rate at 4%.
RBI Governor Shaktikanta Das said that all MPC members are in favor of retaining the rates, hence RBI has retained the rates.
He further said that the inflation figures have been shown as expected and there are clear signs of recovery in the economy.
At the same time, there has been a rapid improvement in economic activities and the economy has shown improvement as compared to the previous MPC.
The RBI Governor said that the rise in crude, commodity has affected inflation and the economy is yet to recover completely.
At the same time, the inflation rate in Q2 has been lower than expected, while demand has increased rapidly in August-September.
GDP growth target remains at 9.5% in FY22- RBI GOVERNOR SHAKTIKANTA DAS.
Now the festive season has started, so the demand for festivals is expected to improve further.
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Festivals are likely to have a greater impact on urban demand. There are also signs of revival in investment activities.
Meanwhile, after the RBI policy in the market, enthusiasm is visible in the market. Sensex crossed 60,000 mark.
Bank Nifty is trading at day's high while Midcap index has reached record high. Ater the announcement of Shaktikanta Das, 10 out of 12 stocks of Bank Nifty are seeing a rise.
On the other hand, buying is seen in 40 out of 50 stocks of Nifty, while buying is visible in 26 out of 30 stocks of Sensex.