RBI HOLDS RATES
Rate sensitivity on the rise in PSB portfolios
"The AFS (available for sale) portfolio's sensitivity (PV01) increased for PSBs (public sector banks) and FBs (foreign banks) since September 2023, while it declined for PVBs (private banks)," the Reserve Bank of India (RBI) said in its June 2024 Financial Stability Report.
Banks in a GST fix over RBI's directive to levy penal charges
The Reserve Bank of India's directive to levy penalties only in the form of 'penal charges' is posing a tax dilemma for banks. Banks fear that the indirect tax on such levies would attract the goods and services tax (GST). The new rule, which came into force from April 1, 2024, was brought in by the central bank to ensure "reasonableness and transparency" in disclosure of penal interest. However, banks have asked the tax authorities to spell out their stand on the issue.
Time to reset the 4% inflation target?
A scenario where real wages rise slowly may mitigate the impact of inflation surpassing its target on economic growth. Sustaining an 8% growth rate will require a resurgence in both consumption and investment. Any decline in consumption could adversely affect investment, prompting the RBI to exercise caution in reducing interest rates until inflation aligns with or falls below the target. If the economy can maintain higher growth rates at lower inflation levels, there may be a need to reconsider the inflation target. Structural shifts in the economy indicate that achieving this goal is increasingly feasible in the near future.
Rupee falls to record low hurt by likely outflows, importer dollar demand
The currency fell to a record low of 83.6650 against the U.S. dollar in the latter half of Thursday's trading session, closing at 83.6425. This marks a decline from the previous session's close of 83.4550. Traders attributed the currency's weakness to a broadly stronger dollar and a weakening Chinese yuan, which exerted additional pressure on the Indian currency throughout the day.
What to do with Heritage Foods, REC and 4 other stocks? Religare Broking's Ravi Singh decodes
For Nifty, a break above 23,350 could potentially lead it to touch 23,600 levels. For Bank Nifty, breaking above 50,400 could help the index achieve 51,300 levels in the near term.
RBI policy on expected lines, upgrading GDP growth estimate reposes confidence: Bankers
Bankers welcomed the Reserve Bank of India's decision to maintain interest rates, as it was in line with expectations, with an upward revision of the growth estimate. The move, including the unchanged repo rate, was seen as positive for the economy. The revised GDP growth forecast for FY25 instilled confidence in the central bank's outlook. Industry leaders praised the regulatory measures and highlighted the importance of collaboration for financial sector growth.
- Go To Page 1
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.
Expect repo rate cut only in October RBI policy meeting: SBI Research
The report, authored by Soumya Kanti Ghosh, SBI's Group Chief Economic Adviser, expects first repo rate cut in October meeting. The repo rate is the rate of interest at which the RBI lends to other banks.
Sensex hits fresh all-time high, surges 1,619 points; rate-sensitive stocks surge up to 9% post RBI policy decision
The market capitalisation of all listed companies on BSE surged by Rs 7.38 lakh crore to Rs 423.27 lakh crore. Post RBI policy decision, realty indices surged up to 9.5%, with Sunteck Realty, Sobha, Brigade, and Lodha rising between 3% and 9.5%. Nifty Bank stocks such as Bandhan Bank, SBI, Axis Bank, AU Small Finance Bank, and Kotak Bank rose by 1-2%.
Another vote surprise! Dissent grows in RBI that has more 'elbow room'
RBI Monetary Policy: The Reserve Bank of India maintained key lending rates unchanged for an eighth consecutive time with a larger split in votes. Governor Shaktikanta Das emphasised the need for price stability in the growing economy. The unexpected vote split indicates a potential shift towards a rate cut in future policies, though 'greater elbow room' for price stability may not demand an immediate cut. The RBI's stance aligns with market expectations, with a focus on balancing inflation and growth. Despite robust economic growth, inflation remains a concern.
RBI MPC retains repo rate at 6.5 per cent for 8th time in a row; GDP forecast hiked, inflation unchanged
RBI MPC Meet 2024: The Reserve Bank of India, under the guidance of the Monetary Policy Committee (MPC), maintained the repo rate at 6.5 per cent for the eighth consecutive time. The announcement was made by RBI governor Shaktikanta Das following the conclusion of a three-day meeting that began on June 5.
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%.
GIFT Nifty trades on a muted note; here's the trading setup for today's session
GIFT Nifty: Domestic equities rose for a second day as investors analyzed Lok Sabha 2024 elections outcome. Focus on government formation, ECB meeting today, and RBI policy tomorrow.
'Acche din' to continue for FD investors as high fixed deposit interest rates will not drop soon: All eyes on RBI MPC on June 7
The Reserve Bank of India (RBI) will likely keep the repo rate unchanged in the upcoming monetary policy committee review. The question now is how long will the high-FD rate regime continue. Also, what should be the best strategy for your short-term and long-term fixed deposits? ET Wealth Online spoke to experts and here's all you need to know.
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.
A likely Modi 3.0 might just give Indian economy what it wanted for so long
India's chances of soverign rating upgrade is likely high. Exit polls predict Narendra Modi's BJP-led NDA will secure a third term with a significant majority. The NDA is expected to surpass its 2019 tally, easing concerns about replicating previous success. This likely continuity boosts economic confidence, with S&P upgrading India's outlook to "positive" and fiscal indicators showing robust growth and reduced deficit.
FPI buying of debt via voluntary retention route gathers pace
Foreign holdings in India's debt market have surged, with FPI investment in the voluntary long-term route hitting $508 million in May. Recent deals by companies like Vedanta and Nirma have contributed to the rise, with market players expecting further activity as Indian sovereign debt joins a JP Morgan index.
Sharp drop in provisions helped RBI transfer bumper dividend to RBI
The Reserve Bank of India's income rose 15% last fiscal due to higher interest income from bond holdings and a sharp drop in provisions transferred to the Contingency Fund, enabling a record dividend payment to the central government.
Investors bought Rs 27,000 cr of sovereign gold bonds in FY24: RBI report
Sovereign gold bonds have caught the fancy of investors who bought Rs 27,031 crore worth of the bonds last fiscal, an amount more than four times invested in 2022-23 on the prospects of higher returns and tax benefits.
Road Ministry against hike in project lending rates, bats for status quo
"RBI, as a regulator, will have to create that balance to ensure financial viability of road projects does not take a hit," an official said. The central bank earlier this month proposed tighter norms, requiring lenders to allocate 5% of the project loan amount as general provisions during the construction phase, up from 0.4% provisions now.
GDP likely expanded 6.8% in Q4; FY24 print may hit 7.8%
The strong March quarter print could lift overall gross domestic product (GDP) growth for the full fiscal year to 7.8% against 7.6% assessed in the government's first advance estimates released in February. The International Monetary Fund (IMF) has also forecast 7.8% growth for FY24. The government will release fourth-quarter growth numbers and provisional GDP data for FY24 on May 31.
RBI Monetary Policy: India’s sticky inflation gives RBI reason to stay on hold
RBI MPC Meeting: India's steady inflation and the threat of rising food prices are likely to delay any interest rate cuts by the central bank. Consumer prices rose 4.83% in April, close to economists' expectations. The Reserve Bank of India has maintained its 6.5% benchmark interest rate for over a year, with no cuts expected until the final quarter of the year. Citigroup economists predict a shift to a neutral stance in August due to favorable inflation data. Food prices, a significant component of consumer prices, continue to rise, impacting the overall inflation rate. Erratic weather and the upcoming elections are additional factors complicating the central bank's decision-making process.
Monsoon holds key for RBI's future monetary policy actions
As India faces summer heatwaves, chances of the Reserve Bank of India (RBI) reducing interest rates dwindle. The Bank of Baroda report links severe heat to potential food price impacts, underscoring the monsoon's critical role. Despite forecasts of above-normal monsoon, inflation challenges persist, delaying RBI's policy adjustments. Heatwaves disrupt travel, impacting sectors differently.
Food inflation on mind, RBI holds interest rates steady
India is probably a positive outlier in the world hobbled with economic challenges, offering Mint Road the opportunity to further consolidate its war on inflation that has been restrained over the past few quarters from leaping. However, risks to price stability have not entirely receded into the background, said RBI Governor Shaktikanta Das, after the first policy review meeting in the new fiscal year.
Sensex, Nifty end flat as RBI holds rates; realty stocks jump
Banks and real estate stocks benefitted from the central bank's rate freeze, while IT stocks fell on US rate cut uncertainty. BSE Sensex rose 20 points, NSE Nifty gained 11 points.
FD interest rates of 8-9% to continue for a longer period as RBI holds repo rate; how to invest in fixed deposits
Fixed deposit investors have been rejoicing a high interest rate regime for last one year when RBI last hiked the repo rate in February last year to 6.5%. However, the interest rate cycle is due for reversal and hence the rates are likely to fall sooner or later. However, with RBI holding the rate in current MPC the rate reduction exercise has been pushed further by a few months. FD investors are not complaining.
India's 'Goldilocks' economy to prompt Reseve Bank of India to keep rates on hold
India's central bank is likely to retain interest rates at 6.50%, emphasizing the balance between growth and stability. With strong economic growth and lower inflation, the bank aims to maintain policy until inflation aligns with the 4% target.
Rate hikes not fully transmitted, RBI may hold repo in April meet
RBI maintains accommodation withdrawal due to incomplete transmission, focusing on inflation targeting and transmission challenges. Gudwani notes RBI's cautious stance, emphasizing the impact of liquidity conditions on rate transmission pace.
RBI likely to hold rates steady until at least July: Poll
India's economy grew a stellar 8.4% in the fourth quarter of 2023, the fastest among major economies. Inflation, which is still close to the upper band of the central bank's 2%-6% target, does not hint at an imminent rate cut.
Load More
