MPC

Members said it was MPC's turn to do its bit after Budget booster

FIT more effective than multiple indicators framework

Reserve Bank Governor Sanjay Malhotra opined that rate reduction was an appropriate monetary policy response at this juncture citing movement of inflation towards the central bank's 4 per cent target, said the MPC meeting minutes released on Friday. Malhotra, along with five other members of the Monetary Policy Committee (MPC) had voted for a 25 basis points reduction in the short-term lending rate (repo) to 6.25 per cent. The RBI at its meeting held from February 5 to 7 effected the rate cut after a gap of five years. "Given the macroeconomic outlook when inflation is expected to align with the target, and recognising that monetary policy is forward-looking, I view a lower policy rate to be more appropriate at the current juncture," Malhotra said, according to the minutes. Chairing his first MPC meeting, he had also pointed out that rising uncertainties on global financial markets and trade policy front, coupled with continuing risk of adverse weather events pose risks to the ...

The RBI on Friday said non-bank brokers registered with market-regulator Sebi can directly access NDS-OM, an electronic trading platform for secondary market transactions in government securities, on behalf of their clients. Access to Negotiated Dealing System Order Matching (NDS-OM), at present is available to regulated entities and to the clients of banks and standalone primary dealers. "With a view to widening access, it has been decided that non-bank brokers registered with SEBI can directly access NDS-OM, on behalf of their clients," the Reserve Bank of India (RBI) said. Sebi registered brokers may access NDS-OM subject to the regulations and conditions laid down by the Reserve Bank in this regard. Meanwhile, the RBI announced the setting up of a nine-member working group on 'Comprehensive review of trading and settlement timings of markets regulated by the Reserve Bank'. The panel, headed by RBI Executive Director Radha Shyam Ratho, will undertake a comprehensive review of

Given the current economic landscape, moderating inflation, and sluggish growth, another 25-50 bps rate cut within this calendar year remains a strong possibility

Consultative process in making regulations will continue: Sanjay Malhotra

Realtors' apex body CREDAI on Friday said the RBI's decision to cut benchmark lending rate by 25 basis points might have "limited direct impact" and sought further reduction in the next monetary policy meet for "stronger impetus" to housing demand. Reduction in repo rate may lead to lowering of interest rates on home loans provided banks decide to pass on the benefits. Commenting on the monetary policy announcement, CREDAI National President Boman Irani said, "The RBI's decision to reduce repo rate by 25 basis points to 6.25 per cent supplements recent announcements in the Budget aimed at boosting spending and spur economic growth." This supportive monetary policy was "imperative", especially after the recent 50 basis points reduction in Cash Reserve Ratio (CRR), which has already injected significant liquidity into the banking system, he added. "While the current cut may have a limited direct impact, we anticipate that a further rate cut in the next MPC meeting will provide strong

AFA is the use of more than one factor for authenticating a payment instruction and was previously mandated only for domestic transactions

This will be the first MPC meeting since Governor Malhotra took office in December 2024, following the end of Shaktikanta Das's tenure

Our editorials and columns look at the consequences of policy actions, and how they can have far-reaching impacts

Global uncertainty demands caution on monetary policy

Stock Market Highlights on February 5, 2025: Broader markets outperformed the benchmarks, with small-cap shares leading the charge, as the Nifty Smallcap100 index ended higher by 1.85 per cent

Malhotra took charge as the 26th RBI governor in December last year

Over 70 per cent of respondents, 45 of 62, in a Jan. 22-30 Reuters poll forecast the RBI would cut its key repo rate by 25 basis points to 6.25 per cet at the conclusion of its Feb. 5-7 meeting

The domestic rate-setting panel has kept the policy repo rate unchanged for the last 11 consecutive meetings after raising it by 250 bps between May 2022 and February 2023

Nomura economists have suggested that they expect a 25 bps rate cut in February, marking a belated policy pivot, and 100 bps in total cuts in this easing cycle

Sanjay Malhotra, a 1990 batch IAS officer from the Rajasthan cadre, will take over from Shaktikanta Das, whose term comes to an end on December 10

In all, the policy has travelled considerable space in addressing the emerging issues in financial services

The rupee depreciated to a new closing low of 84.74 per dollar on Wednesday due to a rise in the dollar index and strong demand for the greenback among importers, said dealers