MONETARY POLICY COMMITTEE
India central bank policymakers divided over rate-growth debate
Internal members maintain hawkish stance on inflation, with Governor Das cautioning against hasty actions for fear of worsening the situation
India can grow at 8 pc if inflation keeps falling: Ashima Goyal, an external member of MPC
Ashima Goyal, an external member of the Monetary Policy Committee, emphasized the potential for India's economy to grow at 8% if the nominal repo rate falls in line with declining inflation. The Reserve Bank of India has projected a GDP growth of 7.2% for the current fiscal year.
Real rate of interest at 1.5 pc apt for economy: Shashanka Bhide
Shashanka Bhide, an external member of the rate-setting panel, suggests a real interest rate of 1.5% for India, closely tied to achieving the Monetary Policy Committee's 4% inflation target. He emphasizes the importance of favorable macroeconomic conditions for high economic growth.
We are actually raising the real repo rate: MPC's Jayanth Varma
Jayanth Varma, who has expressed concerns about growth sacrifice due to restrictive monetary policy, voted for a 25-basis-point rate cut in the MPC's June policy review.
Charting the global economy: BOE leaves rate-cut hopes alive
The Bank of England hinted at possible interest-rate cuts as some officials are leaning towards it, despite keeping rates steady at 5.25%.
RBI MPC minutes: Panelists flag incoming impact of 'exceptionally' warm summers on food inflation
The Reserve Bank of India's (RBI) Monetary Policy Committee members raised concerns about inflation pressures due to "exceptionally" warm summers, impacting perishable goods and crop output, as per their latest meeting minutes. RBI Governor Shaktikanta Das expects retail inflation to moderate to 4.5% in FY25 but warns of near-term challenges.
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US Fed's 'dot plot' could offer glimpse of rate-cut resolve
Since raising their benchmark federal funds rate more than five percentage points starting in March 2022, the Federal Open Market Committee (FOMC) has held borrowing costs at a two-decade high since July. A host of Fed leaders have suggested in recent weeks they see no rush to cut rates, with inflation more persistent and the outlook for growth staying solid.
US Fed likely to remain on pause and pare back rate cut expectations
The US Federal Reserve is likely to keep interest rates unchanged this week, but could pare back the number of cuts it has penciled in for this year, as policymakers digest a mixed bag of economic data. But with the data still painting a mixed picture, he is unlikely to rock the boat too much this week, according to Oxford Economics chief US economist Ryan Sweet.
No rate cut seen in August either, but enough signs of a shift in stance
The minutes of the meeting will be available on June 21. Varma and Goyal have argued that high interest rates might be hindering potential growth. They have previously debated that a high real interest rate—the difference between the actual interest rate and inflation—could be compromising growth.
RBI holds rates amid food inflation fears
The Reserve Bank of India (RBI) kept policy interest rates unchanged for the eighth consecutive meeting due to concerns about rising food prices. The central bank raised its economic growth forecast for FY25 to 7.2% from 7%, driven by state investments and broad-based consumption. Despite inflation worries, the repo rate remains at 6.5%. A divide in the Monetary Policy Committee emerged, with two members favoring a rate cut. Equity indices surged, but bond yields rose slightly. Governor Das emphasized India's independent monetary policy stance.
Flexible approach in managing liquidity to help money market rates
RBI Governor Shaktikanta Das announced the central bank's commitment to maintaining money market rates and borrowing costs through flexible liquidity management. The RBI will use various operations to manage liquidity, responding to foreign investment flows impacting Indian bond markets. Analysts predict significant foreign flows following inclusion in JPMorgan's bond index, potentially affecting rupee liquidity. Das highlighted the RBI's ability to handle liquidity impact and swiftly respond to banking system liquidity fluctuations.
No rate cut seen in August either, but enough signs of a shift in stance
In the normal course of events, the rising dissent in the MPC should have led to more joining the camp of rate cut seekers as data turns benign. Inflation may not have come back to the 4% target, but it's not threatening to soar. For the US, it is at 3.4% in April when the target is 2%.
As Modi 3.0 begins, where the economy stands, where it's headed
Narendra Modi is set to begin his third term as PM with a full-strength NDA team, amidst optimism for India's economic future. RBI Governor Shantikanta Das highlighted the country's robust economic growth, strong manufacturing sector, recovering rural demand, and promising investment activity. India's external sector remains resilient, with positive growth prospects ahead.
RBI MPC to take call on policy action once 'slow-walking' inflation hits 4 per cent target durably
RBI MPC 2024: Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), has reaffirmed the central bank's commitment to controlling inflation. In a statement on Friday, he emphasised that the Monetary Policy Committee's (MPC) goal is not only to achieve the 4 per cent inflation target but to maintain it steadily.
RBI MPC Highlights: Das & co keep rates unchanged, but dovish clamour grows
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) kept the repo rate steady at 6.50% for the eighth consecutive meeting. However, a new shift emerged with Ashima Goyal joining Jayanth Varma in voting for a rate cut. The committee continues to prioritize inflation control and forecasts 7.2% GDP growth for FY25, supported by expected robust monsoons and a revival in private consumption.
Home loan borrowers may have to wait longer for lower EMIs but a rate cut likely this year; how to make the most of it
Home Loan Interest Rates: The Reserve Bank of India (RBI) in its recent Monetary Policy Committee meeting decided to maintain the repo rate at 6.5%, prolonging the wait for home loan borrowers seeking relief from high interest rates and increased EMIs. Despite the current pause in repo rate the possibility of a rate reduction this year is still there.
RBI MPC meeting: India’s FY25 GDP forecast raised to 7.2% from 7%
The Reserve Bank of India (RBI) raised the FY25 real GDP growth forecast to 7.2% from 7% due to improved rural and urban demand, bolstered by monsoon predictions. The Monetary Policy Committee kept the benchmark rate at 6.25%, noting domestic economic resilience. India's FY24 GDP growth accelerated to 8.2%, driven by a sharp decline in the GDP deflator.
RBI maintains interest rates amid growing calls for easier money policy
The Reserve Bank of India (RBI) kept interest rates unchanged in its eighth consecutive meeting, with some members leaning towards easing monetary policy due to concerns about rising food prices. The central bank raised its FY25 growth forecast by 20 basis points to 7.2%, leading to a surge in equity indices. Inflation remains a concern due to global commodity price increases and potential food price spikes.
RBI MPC Meeting 2024 at a glance: Here's a one-stop guide to all key decisions
The Reserve Bank of India's Monetary Policy Committee (MPC) has decided to maintain the current interest rate at 6.5%, following a 4:2 majority decision. The panel projected real GDP growth for FY25 to be 7.2%, up from 7%. The MPC is also maintaining the Standing Deposit Facility rate at 6.25% and the Marginal Standing Facility bank rate at 6.75%.
RBI sees moderation in unsecured retail loans, tells banks to maintain prudent asset-liability balance
The Reserve Bank of India (RBI) noted a moderation in unsecured retail loans and advances following concerns raised in November 2023. Governor Shaktikanta Das highlighted that growth in personal loans and NBFC funding reliance has slowed. The RBI continues to monitor these trends and has urged financial institutions to maintain risk within acceptable limits.
RBI MPC Meeting: Das & Co may look at food bills to keep its stance, rate unchanged
RBI Policy Meeting: The Reserve Bank of India (RBI) is expected to maintain the repo rate at 6.5% with a focus on withdrawing accommodation, marking the eighth consecutive time it remains unchanged. Economists predict the unchanged stance, citing persistent inflation in food prices and global commodity price risks. RBI Governor's decision is crucial post-elections.
RBI unlikely to cut rates; Sustained vigil on inflation expected
RBI to hold rates on strong GDP growth. Inflation within target range but food inflation high. RBI cautious on weather impact.
RBI unlikely to cut interest rate on June 7, say experts
The Reserve Bank of India is unlikely to cut the benchmark interest rate in its upcoming monetary policy review amid inflation challenges and improving economic growth. Scheduled for June 5-7, the Monetary Policy Committee (MPC) is expected to maintain the current 6.5% repo rate. Experts cite steady economic conditions and ongoing inflation concerns as reasons for maintaining the status quo
Fed's Williams says he doesn't feel urgency to cut rates right now
Williams stated that the economy's behavior over the past year provides ample evidence that monetary policy is restrictive in a way that helps achieve their goals. He made these remarks in the text of a speech prepared for delivery before a gathering of the Economic Club of New York.
RBI MPC meeting next week: What investors should expect
The RBI's upcoming MPC meeting on June 7, 2024, is expected to maintain interest rates amidst a stable inflation scenario post Lok Sabha election results. The focus will be on global and domestic factors impacting the economy.
UK recovering faster than expected after slipping into technical recession: IMF
The UK economy is approaching a soft landing, with a recovery in growth expected in 2024, strengthening in 2025, IMF said. Soft landing in economic parlance is managing inflation at comfortable levels without hurting economic growth.
Fed's Waller sees some progress on inflation, no rate hike needed
Federal Reserve Governor Christopher Waller on Tuesday put a pin in speculation that interest rates may need to rise again, saying the latest inflation data is "reassuring" and the U.S. central bank's policy rate is set appropriately.
Fed remains cautious on cuts even as data improves
"I don't see any indicators now telling me ... there's a reason to change the stance of monetary policy now," Williams said in an interview with Reuters, adding that he did not expect the case for a rate cut to fall into place "in the very near term."
Fed's Mester seeks more evidence inflation pressures are easing
Mester said risks to inflation have risen and risks to weaker growth and hiring have diminished, which means in a strong economy the Fed has the space to look for more evidence inflation is moving back to target before cutting rates.
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