MONETARY POLICY PRESS
Asian stocks build on Wall St records after US inflation data
Asian traders extended a rally across world markets Thursday as they welcomed figures showing US inflation slowed further last month, tempering concerns about the Federal Reserve's forecast of just one interest rate cut this year. However, the Fed later in the day released its keenly awaited "dot plot" outlook for interest rates, which showed that decision-makers saw just one cut this year -- down from three predicted in its previous guidance in March.
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.
Post-Monetary Policy Press Briefing by RBI Guv Shaktikanta Das | Repo rate unchanged | Live
Reserve Bank of India Governor Shaktikanta Das-led Monetary Policy Committee (MPC) announced its decision on policy stance. The rate-setting panel’s meeting was concluded on June 7, 2024, where it was decided to keep the repo rate unchanged at 6.5 per cent, c...
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%.
ECB cuts rates, keeps next move under wraps
The European Central Bank cut interest rates for the first time in five years, lowering the deposit rate to 3.75%. The move came in response to inflation uncertainty following a slowdown. This move is seen as the start of an easing cycle, but future cuts may be delayed due to price and wage pressures. ECB remains data-dependent and may wait until September for further action. Fed's stance may impact ECB's decisions.
India's GDP grows 7.8 per cent in Q4, FY24 growth pegged at 8.2 per cent
India Q4 GDP: The analysts were anticipating a better-than-expected growth for the January to March quarter this time around. The Reserve Bank of India (RBI) estimated Q4FY24 real GDP growth to be 7 per cent while ET Poll suggested the growth rate of 6.8 per cent. As per a Reuters poll, the Indian economy was expected to grow at 6.7 per cent in the January-March quarter on a year-on-year basis, owing to weak demand.
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IMF revises China's GDP to 5% this year; growth may decelerate to 3.3 per cent by 2029, says Gita Gopinath
The 5 per cent growth revision by the International Monetary Fund (IMF) is in line with the target set by the Chinese government for the world's second-largest economy which is grappling with a slowdown triggered by the crippling property sector crisis and industrial overcapacity.
IMF upgrades China's 2024, 2025 GDP growth forecasts but warns of risks ahead
"China's economic growth is projected to remain resilient at five percent in 2024 and slow to 4.5 percent in 2025," the IMF said in a press release, adding the decision was "driven by strong first-quarter GDP data and recent policy measures".
Dollar consolidates as Fed urges patience; markets await meeting minutes
Investors have been shoring up rate cut bets after a milder inflation reading last week boosted expectations for U.S. rate cuts this year.
Fed's Powell: PPI mixed, next move unlikely to be a rate hike
Though he said "my confidence in that is not as high as it was," given faster than expected inflation through the first three months of the year, the U.S. central bank chief said it remained unlikely in his view that the Fed would have to raise rates any further, even if the prospect for rate cuts has become less certain.
BoE leaves key rate unchanged at 5.25%; moves closer to first rate cut since 2020
The BoE said on Thursday its Monetary Policy Committee voted 7-2 to keep rates at a 16-year high of 5.25% after Deputy Governor Dave Ramsden joined Swati Dhingra in voting for a cut to 5%. The MPC has now kept rates on hold at six meetings in a row but it hinted that a first cut since March 2020 at the onset of the COVID-19 pandemic could come as soon as its next meeting in June, a potential boost for Prime Minister Rishi Sunak.
S&P 500, Nasdaq end lower after Fed rate decision, Powell press conference
The Federal Open Markets Committee concluded its two-day monetary policy meeting with a unanimous decision to let the Fed funds target rate stand at 5.25%-5.50%.
Banks fail to meet RBI mandate on CRR multiple times
"The RBI had given the dispensation on CRR maintenance in 2022 to at least one private bank which was facing some issues, but that dispensation does not exist anymore. Another factor is that there are issues with how the CRR maintenance data is reported. That is contributing to the shortfall and the RBI will rectify that issue," said one of the persons, who did not wish to be identified.
The Fed is wrong about how low interest rates will go: Bill Dudley
Taken together, higher average inflation and a neutral rate of 1% to 1.5% would imply a long-term federal funds rate of 3.5% to 4.0%. So while the Fed’s projections for 2024 look likely to be more accurate than the market’s at the start of the year, this time around it’s the central bank, not the market, that will probably have to adjust.
Wall Street ends higher as Fed keeps three rate cuts on the horizon
The Fed's policy statement described inflation as remaining "elevated," and it raised economic projections for economic growth and lowered its projection for the unemployment rate from estimates it provided in December.
Russian central bank holds rates at 16% after months of tightening
Russia's central bank has decided to keep its key interest rate at 16%, maintaining borrowing costs unchanged for the time being. Despite five consecutive rate hikes since last summer, inflation pressures persist, and the central bank stated that returning inflation to its 4% target would require "tight monetary conditions... for a long period." The bank's next rate-setting meeting is scheduled for March 22.
RBI's nimble and flexible in managing liquidity: Guv
Since April 2022, the RBI has adopted a stance of focusing on withdrawal of accommodation to tackle inflation. Liquidity in the banking system has been at a deficit over the past six months, with the weighted average call rate (WACR) broadly remaining 20-25 basis points above the repo rate from August to January. The WACR is the operating target of the RBI's monetary policy.
RBI to streamline Aadhar-enabled payment system, introduce additional risk management measures
Right now, there is no two factor authentication for Aadhar enabled payments, which is risky and the cause for many frauds. The customer can pay the merchant by entering their Aadhar number and biometrics like fingerprints and iris. Fraud with iris happens more to older people, as fingerprints become difficult to capture with age.
BOJ keeps ultra-easy policy, focus shifts to Ueda's briefing
The Bank of Japan maintained ultra-easy monetary settings on Tuesday in a widely expected, as policymakers allow more time to determine whether wage increases will broaden enough to keep inflation sustainably at its 2% target.
Fed pivot will dominate year of rate cuts in turn of global cycle
The US Federal Reserve will lead the pivot for richer countries after its policy makers signaled 75 basis points of cuts for the year, marking an abrupt shift from previous warnings that rates could still go higher through much of 2024.
With rate hikes likely done, Fed turns to timing of cuts
"People are not writing down rate hikes" in their latest economic projections, Fed Chair Jerome Powell said in a press conference following the end of the central bank's final policy meeting of the year.
Global rate-cut standoff looms in 2023 policy finale
Policymakers from fully half of the Group of 10 jurisdictions of most-traded currencies are scheduled to meet in the coming days, and interest rates for 60% of the world economy will be set in a whirlwind 60-hour window. Most notable will be the US Federal Reserve on Wednesday, followed on Thursday by central banks including those of the euro zone and the UK.
RBI launches two key surveys for monetary policy inputs
While the 'Inflation Expectations Survey of Households' captures subjective assessments on price movements and inflation based on their individual consumption baskets, the 'Consumer Confidence Survey' seeks responses from households, regarding their sentiments on general economic situation, employment scenario, price level, households' income and spending.
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