REAL REPO RATE
![A matter of interest. When rates don’t deliver](https://img.etimg.com/thumb/msid-111307997,width-100,height-75,resizemode-4/opinion/et-commentary/a-matter-of-interest-when-rates-dont-deliver.jpg)
A matter of interest. When rates don’t deliver
repo rate has remained well above the recorded inflation rate for most parts of the last two years, so If high interest rates could tame the present inflation, logically it should have been tamed by now. What if a recalcitrant inflation is signaling to us that we are using the wrong tool?
![Time to reset the 4% inflation target?](https://img.etimg.com/thumb/msid-111238849,width-100,height-75,resizemode-4/opinion/et-editorial/time-to-reset-the-4-inflation-target.jpg)
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.
![India can grow at 8 pc if inflation keeps falling: Ashima Goyal, an external member of MPC](https://img.etimg.com/thumb/msid-111212395,width-100,height-75,resizemode-4/news/economy/indicators/india-can-grow-at-8-pc-if-inflation-keeps-falling-ashima-goyal-an-external-member-of-mpc.jpg)
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.
![We are actually raising the real repo rate: MPC's Jayanth Varma](https://img.etimg.com/thumb/msid-111203981,width-100,height-75,resizemode-4/news/economy/policy/we-are-actually-raising-the-real-repo-rate-mpcs-jayanth-varma.jpg)
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.
![Real repo rate too high and could hurt growth, said MPC dissenters](https://img.etimg.com/thumb/msid-111172998,width-100,height-75,resizemode-4/news/economy/policy/dissenters-say-real-rates-too-high-could-hurt-growth.jpg)
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.
![Should you buy a house now before property prices soar or wait for home loan interest rates to drop?](https://img.etimg.com/thumb/msid-110810647,width-100,height-75,resizemode-4/wealth/real-estate/should-you-buy-a-house-now-before-property-prices-soar-or-wait-for-home-loan-interest-rates-to-drop.jpg)
Should you buy a house now before property prices soar or wait for home loan interest rates to drop?
A favourable wealth effect, driven by a sharp rise in the equity markets, is enticing many first-time homebuy ers to take the plunge, while affluent buyers are looking for second homes. If you are a fence-sitter, still unsure about when to buy a house, this market presents a big dilemma. Is it the right time to buy a house?
- Go To Page 1
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%.
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.
Upward GDP projection and no change in interest rates welcomed by industry and economists
Industry leaders and economists widely accepted RBI's monetary policy stand of no change in interest rates. Besides upward projection of GDP growth for FY25 from 7 per cent to 7.2 per cent is welcomed by the Industry.
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%.
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.
Builders want reduction in repo rate in RBI's next monetary policy to boost housing sales
Real estate developers urged the RBI to lower the repo rate in the upcoming monetary policy to reduce home loan interest rates and stimulate housing demand, as the RBI maintained the rate at 6.50%. Industry experts anticipate potential rate cuts in the future to boost the real estate sector further amid strong market performance.
High FD interest rates may not last long despite RBI status quo; is this the last window to book fixed deposits at higher rates?
FD Interest Rates: RBI in its MPC meeting on June 7 kept the repo rate unchanged at 6.5%. This marks the eighth consecutive MPC with status quo, benefiting fixed deposit investors with high rates. However, going forward the interest rate cycle to reverse. The potential for a rate cut later in the year is anticipated.
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 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 following the US Fed? Guv Das says "we play according to local weather, pitch conditions"
The Reserve Bank of India (RBI) has emphasized its independence from global influences and prioritizing domestic economic conditions over distant horizons. The RBI's actions are primarily determined by domestic growth-inflation conditions and the outlook. India has maintained its stance of 'withdrawal of accommodation' since February 2023 and has not changed its stance of 'withdrawal of accommodation' since February 2023.
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 rate-setting panel starts deliberations on monetary policy, decision on Friday
The Reserve Bank of India's monetary policy committee (MPC) began a three-day meeting to determine the next monetary policy, with Governor Shaktikanta Das expected to announce the decisions on Friday. Analysts anticipate the continuation of the current interest rate, given persistent inflation concerns and improving economic growth.
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
How RBI can lead central banks in lowering rates instead of following the Fed
It would be wrong to say that RBI blindly follows the US Fed. But it targets CPI, and that can lead to errors. India's WPI has changed little since late 2022, moving up and down in a 4% band around 150.0. But CPI has risen much more, and that is the figure Shaktikanta Das looks at.
MPC should be wary of persistent high rates choking revival in pvt investments: Jayanth Varma
Varma also expressed "great concern" over a projected slowdown in India's growth this year, adding that the latest flare-up in the Middle East had not changed his argument for a rate cut.
RBI likely to leave rates unchanged in FY25, help maintain India's 'Goldilocks' environment: Morgan Stanley
Economists anticipate the Reserve Bank of India (RBI) to maintain its policy rate at 6.5% for the fiscal year 2024-25 due to factors like higher-than-targeted inflation, global influences such as commodity prices, and a stronger dollar. The RBI's decision will also hinge on domestic factors like growth driven by capital expenditure (capex) and productivity.
Looking beyond equities: 'ETMarkets Emerging Investment Opportunities' event unveils new investment frontiers
Edul Patel, CEO of Mudrex addressed some of the most common questions regarding Bitcoin and its investment potential. As the cryptocurrency landscape evolves rapidly, Patel aimed to shed light on key aspects to help investors navigate this dynamic market.
RBI's repo rate pause, growth outlook to keep housing sales momentum steady
Industry experts are of the view that the central bank may start reducing rates later this year, which is likely to provide additional support for housing sales across different segments.
RBI leaves repo rate unchanged; retains “withdrawal of accommodation” stance
RBI maintains 6.50% repo rate after 3-day meeting, focusing on withdrawing accommodation. Supported by 5 of 6 MPC members. Minimal market impact on Sensex, Nifty 50.
RBI MPC keeps repo rate unchanged at 6.5 per cent for the 7th time in a row; GDP, inflation forecast retained
The RBI-led MPC kept the repo rate steady at 6.5 per cent for the seventh time, confirmed RBI governor Shaktikanta Das. The committee also maintained its 'withdrawal of accommodation' stance while concentrating on liquidity management to control inflation.
Status quo for the 7th time? RBI MPC may not let rains ruin repo rate, stance this time around
The RBI MPC is expected to maintain the repo rate at 6.5 per cent, focusing on 'withdrawal of accommodation' stance, as per economists. If the RBI sticks to the current rates, it will mark the seventh consecutive time the key lending rate remains unchanged. RBI Governor Shaktikanta Das will reveal the outcome of the bimonthly meeting that began on April 3, with the decision scheduled for April 5 at 10 am.
Load More