RBI monetary policy LIVE: RBI keeps repo rate at 6%, flags inflation risks

RBI sees pick in credit growth due to bank recapitalisation and resolution proceedings under IBC

4:11 PM

RBI said that recapitalisation of public sector banks along with resolution of stressed assets under the Insolvency and Bankruptcy Code (IBC) will create demand for fresh investments.

 

"GVA (Gross Value Added) growth for 2017-18 is projected at 6.6 per cent," it said.

4:01 PM

Viral Acharya, deputy RBI Governor

The objective of the liquidity operations conducted by the Reserve Bank of India (RBI) are not to manage the price of bonds, but to drive its monetary policy goals, Deputy Governor Viral Acharya, said on Wednesday after the central bank's monetary policy meeting, damping expectations of bond purchases by the central bank.

3:59 PM

Highlights of RBI policy: Q4FY18 inflation projection raised to 5.1%

Following are the highlights of the RBI's 6th bi-monthly monetary policy statement:

* Key lending rate (repo) unchanged at 6%

* Reverse repo rate remains at 5.75% and marginal standing facility (MSF) rate and Bank Rate at 6.25%

* Monetary policy's stance neutral

* Petrol and diesel prices rose sharply in Jan, reflecting lagged pass-through of past increases in global crude prices

* Retail inflation estimated at 5.1% in Q4 this fiscal and 5.1-5.6% in H1 of FY2018-19

3:53 PM

There are five taxes on capital which will have an impact

 

There are five taxes on capital which will have an impact on investments: RBI Governor Urjit Patel.

3:52 PM

"The focus of the Union Budget on the rural and infrastructure sectors is a welcome development as it would support rural incomes and investment, and in turn provide a further push to aggregate demand and economic activity," it said.

3:52 PM

RBI lowers economic forecast to 6.6% for FY18

RBI lowered the economic growth projection for 2017-18 to 6.6 per cent, but said that it will accelerate to 7.2 per cent in the next financial year as the roll-out of GST stabilises and credit offtake improves.

3:50 PM

Sensex ends lower, Nifty below 10,500 as RBI keeps repo rate unchanged

Benchmark indices ended lower on Wednesday after Reserve Bank of India kept the key policy rate unchanged at 6 per cent for the third consecutive time in view of firming inflation. Reverse Repo rate was also maintained at 5.75%.

3:37 PM

Following are key highlights of the RBI's 6th bi-monthly monetary policy statement

 

* Key lending rate (repo) unchanged at 6 pc;

 

* Reverse repo rate remains at 5.75 pc and marginal standing facility (MSF) rate and Bank Rate at 6.25 pc;

 

* Monetary policy's stance neutral;

 

* Petrol and diesel prices rose sharply in Jan, reflecting lagged pass-through of past increases in global crude prices;

 

* Retail inflation estimated at 5.1 pc in Q4 this fiscal and 5.1-5.6 pc in H1 of FY2018-19;

 

* Inflation likely to ease to 4.5-4.6 per cent in H2 of FY19;

 

* Gross Value Added (GVA) growth for FY18 seen at 6.6 percent;

 

* GVA growth for 2018-19 projected at 7.2 percent;

 

* GST stabilising, which augurs well for economic activity;

 

* Early signs of revival in investment activity;

 

* RBI seeks pick-up in credit growth due to recapitalisation of PSBs and resolution proceedings under IBC

 

* Export growth expected to improve further on account of improving global demand;

 

* RBI says focus of Union Budget on rural and infrastructure sectors a welcome development;

 

* Five members voted in favour of status quo in interest rate; one member voted for increase of 0.25 pc;

 

* Next meeting of the MPC on April 4 and 5.

3:34 PM

Even though the current account deficit narrowed sharply in Q2 of 2017-18 on a sequential basis, it was higher than its level a year ago, mainly due to widening of the trade deficit, says MPC.

3:34 PM

Sensex falls 100 pts as RBI sounds hawkish.

3:34 PM

With a view to promote a less cash economy, the incentive schemes have been reviewed by RBI and it has been decided to discontinue going forward the incentives for installation of Cash Recycler Machines (CRMs) and Automated Teller Machines (ATMs).

3:33 PM

Since MCLR is more sensitive to policy rate signals, it has been decided to harmonize the methodology of determining benchmark rates by linking the Base Rate to the MCLR with effect from April 1, 2018. RBI says necessary instructions to be issued by end of next week.

3:31 PM

The next meeting of the MPC is scheduled on April 4 and 5, 2018.

3:31 PM

The minutes of the MPC’s meeting will be published by February 21, 2018.

3:31 PM

Chetan Ghate, Pami Dua, Ravindra H Dholakia, Viral V Acharya and Urjit R Patel voted in favour of the monetary policy decision. Michael Debabrata Patra voted for an increase in the policy rate of 25 basis points.