MONETARY STANCE CHANGE
Real repo rate too high and could hurt growth, said MPC dissenters
The two external members of the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) who had pushed for a 25 basis point rate cut at the June 7 meeting, Ashima Goyal and JR Varma, said the real repo rate at 2% was too high and could hurt growth, according to the minutes released by the central bank on Friday.
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.
India's world-beating growth pace to continue, says RBI Governor Shaktikanta Das
"In the first three quarters of 2023-24, the current account deficit was 1.2% (of GDP)," Das said. "Our teams are working on the fourth quarter numbers. They look to be even lower, and when you look at the annual current account deficit number, I will not be surprised next week when we publish the current account deficit numbers - they could be even lower than 1% (of GDP)," he said at the ET Now event.
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.
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%.
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.
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 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 leaves inflation projection for FY25 unchanged at 4.5% as 'elephant' out for a walk
Reserve Bank of India Monetary Policy: The RBI today left inflation estimate for fiscal 2025 unchanged at 4.5% amid rising concerns over soaring crude oil prices and supply chain disruptions due to the Red Sea crisis. Food inflation remains a concern after it climbed to 8.7% in February, driving overall inflation, while Brent and WTI futures have now surged on geopolitical tensions.
European shares little changed, inflation data in focus
European stocks were subdued on Monday, with several major markets closed and investors taking a cautious stance ahead of key inflation data from the United States and Europe later this week.
FPIs may adopt a cautious stance until the election results are clear
Foreign Portfolio Investments (FPI) in India may see a cautious approach until the election results are clear. India's economic performance attracts FPI flows driven by factors like interest rates, inflation, and GDP growth, along with a stable political environment.
Fragile yen could make BOJ's Ueda tilt more towards hawkish stance
The BOJ chief will be mindful of avoiding the episode of 2022, when his predecessor's dovish remarks triggered a yen plunge that forced Tokyo to intervene to prop up the currency.
MPC Minutes: Food inflation risks elevated, conditions not in place for let-up in restrictive policy stance, says RBI Dy Guv Patra
Members of the Reserve Bank of India's Monetary Policy Committee expressed confidence in the current policy stance but remained cautious about factors like food inflation and external contingencies. They emphasized the need to maintain downward pressure on inflation until clearer risks emerge, with concerns about persistently high inflation figures despite recent dips.
ET Explainer: The RBI's liquidity stance and its effect
The Reserve Bank of India's liquidity stance is not convincing experts. It follows a corridor liquidity management system with repo rate as the ceiling and reverse repo rate as the floor. Factors causing tight liquidity include withdrawal of accommodative stance, credit growth surpassing deposit growth, fund constraints, slower government spending, and Ukraine war impacting forex reserves.
RBI holds rates; monetary stance change, rate cuts must wait
The Reserve Bank of India (RBI) has maintained interest rates and monetary stance steady for the sixth consecutive monetary review meeting, amid geopolitical tensions and uncertain food prices. The central bank forecasts the economy will repeat its performance next fiscal, expanding at 7%, and inflation will remain above the target at 4.5%. The panel's focus on the withdrawal of accommodation has led to cracks in the Monetary Policy Committee, with both decisions voted 5 to 1.
RBI Monetary Policy at a Glance: Here's your quick guide to know all about MPC policy
The Reserve Bank of India's Governor-led Monetary Policy Committee (MPC) concluded its recent meeting, maintaining the repo rate at 6.5%. This decision comes amidst concerns over inflation, with retail inflation remaining near the upper end of the central bank's comfort zone. Key highlights include the forecasted GDP growth rate of 7% for FY25, the projection of CPI inflation at 4.5% for the same period, and the decision to keep inflation forecast unchanged at 5.4% for the fiscal year.
RBI MPC Meet: Interest rates expected to hold steady, possible shift to neutral stance amid tight liquidity conditions
RBI MPC Meet: The 12 respondents unanimously predicted that the Monetary Policy Committee (MPC) would keep the repo rate unchanged at 6.50% at the end of its February 8 meeting. They said the panel will maintain the status quo on rates for the sixth consecutive time. The repo rate is the rate at which the RBI lends funds to banks.
RBI may shift policy stance to neutral by June: Nomura
The core inflation for December came at 3.8 per cent, the note said, adding that the annualized growth of super-core inflation has dipped below 3 per cent by its estimates which is a "positive surprise". For January, the headline inflation is likely to cool-off to about 5 per cent, while the core is pegged at 3.5 per cent.
RBI may change policy stance to 'neutral' on easing core inflation: Economists
India's sustained fall in core retail inflation and subdued inflationary pressures could prompt the Reserve Bank of India (RBI) to ease its policy stance to 'neutral' next month. Economists believe a shift in stance is likely based on the inflation outlook, global financial conditions, and liquidity situation.
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