Key Highlights

• Repo rate unchanged since February 2023 at 6.5%
• Retail inflation at 6.8% in August 2023.
• Government hopeful of tapering of retail inflation, therefore holding rates for now.
• Crude prizes and bond yields have shown a spike, therefore close vigil is necessary by regulator to control inflation via rate changes.

Inference For Retail Consumers
With the onset of festival season, the decision to hold repo rate will certainly have a positive impact on retail sector particularly home sales, automobile sales, white good sales and similar products. Consumers should exercise caution and build some buffer before committing for long term EMI expenses.