Live: RBI keeps repo rate steady, says economy in better shape since June

Live updates: Monetary policy committee's decisions being read out by RBI governor Shaktikanta Das

RBI monetary policy 2021 Live updates:The Reserve Bank of India�s monetary policy committee on left interest rates untouched for a seventh straight meeting, as its focus remains more on fixing the economy than on controlling price pressures.

The recent inflationary pressures are evoking a concern, Governor Shaktikanta Das said, adding that the RBI raised inflation forecast to 5.7 per cent for the current financial year, from 5.1 per cent previously.

All 15 economists and bond market participants surveyed by Business Standard on Monday expected the committee not to change its rates or stance.

Also Watch:Here's what you can expect from RBI's Monetary Policy

Here are live updates on the monetary policy 2021 committee�s decisions.

12:47 PM

Shaktikanta Das on govt ending retrospective tax

Government’s decision to bring out legislation to end retrospective tax is "definitely a welcome measure", says Shaktikanta Das as he winds up the central bank's press briefing.

12:29 PM

No blanket ban on opening of current accounts: RBI

No blanket ban on opening of current accounts; RBI seeks discipline among borrowers: central bank

12:28 PM

Shaktikanta Das on operation twist

Will continue to use operation twist, OMOs as required: RBI governor Shaktikanta Das

12:18 PM

Economy in much better shape: RBI governor

Economy in much better shape than in June: RBI governor Shaktikanta Das

12:17 PM

MPC is on a guide path for inflation: Michael Patra

MPC is on a guide path for inflation, trying to bring it gradually: Michael Patra, deputy governor at RBI

12:11 PM

Bank licences

RBI committees studying issue of granting new bank licences: Shaktikanta Das

12:10 PM

Shaktikanta Das holds press briefing

RBI governor Shaktikanta Das holds press briefing after announcing policy statement earlier this morning.

12:02 PM

Difficult to understand the MPC's growth optimism: L&T Financial Holdings expert

"While the policy is in line with the street expectations, it's difficult to understand the MPC's growth optimism," Rupa Rege Nitsure, Group Chief Economist, L&T Financial Holdings, tells Reuters. "It (MPC) has not revised the projection for Economic growth in FY22 but increased the inflation projection from 5.1% to 5.7% for FY22. Yet, it feels that the inflationary pressures are transitory. This is a bit confusing. However, the RBI's focus on growth is in the right direction. Markets will demand more clear communication."

11:35 AM

RBI raises retail inflation projection

The Reserve Bank of India raised the retail inflation projection for the current fiscal to 5.7 per cent on account of supply side impediments, firm crude oil prices and higher cost of raw materials. Governor Shaktikanta Das said a "preemptive monetary policy response" at this stage may kill a nascent economic recovery, according to PTI.

11:24 AM

Upward pressure on short-term rates likely over: HDFC Bank expert

"The RBI revised its inflation forecasts upward to 5.7% recognizing the recent inflation spikes. That said, the central bank continued to state that it views inflation as transitory and will look through it while prioritising growth. The increase in quantum of VRR (variable reverse repo) absorption from the market over the next two months is likely to prevent distortions due to excess liquidity for short term rates. We could see some upward pressure on short-term rates and the bottom for rates is likely over. The yield curve could see some flattening over the coming weeks," Sakshi Gupta, senior economist at HDFC Bank, tells Reuters

 

10:39 AM

'RBI’s priority is to nurture growth'

"RBI’s priority is to nurture growth impulses; we remain optimistic for the economy": Shaktikanta Das

10:36 AM

TLTRO scheme extended

RBI’s on-tap TLTRO scheme extended by three months; till December 31, 2021: Shaktikanta Das

10:28 AM

GSAP auctions on Aug 12 and 26

RBI to hold GSAP auctions on August 12 and August 26: Shaktikanta Das

10:23 AM

FY22 retail inflation target raised to 5.7 %

FY22 retail inflation target raised to 5.7 % from 5.1 % earlier

 

 

10:21 AM

CPI-based inflation estimate for FY22 at 5.7%

RBI MPC sees CPI-based inflation estimate for FY22 at 5.7%