RBI MPC highlights: Deposit-credit divergence could lead to liquidity management issue, says Das

RBI Monetary Policy Meeting 2024: Catch all the latest highlights on RBI's monetary policy announcements here

11:53 AM

Food inflation pressures can't be ignored in RBI MPC's target: Governor Das

"Continuing food price shocks slowed the process of disinflation in Q1 FY25. There is also considerable divergence between headline and core inflation. This has brought to the fore how much importance the MPC should give to food inflation. Our target is headline inflation, where food inflation has a weight of 46 per cent. With this high share of food in the consumption basket, food inflation pressures cannot be ignored," RBI Governor Shaktikanta Das said.

11:31 AM

Core inflation moderated to ‘historic low’ in May and June: RBI Governor Shaktikanta Das

Shaktikanta Das announced that core inflation has been moderated to a ‘historic low’ in May and June, with food inflation contributing to 75 per cent of inflation in these two months. .

For FY25, RBI kept its CPI projection at 4.5 per cent

Q2 - The central bank increased it forecast to 4.4 per cent from 3.8 per cent  

Q3 - Up 4.7 per cent from 4.6 per cent

Q4 - Down to 4.3 per cent from 4.5 per cent

For the first quarter of FY26, the RBI expects CPI growth at 4.4 per cent.

11:21 AM

What RBI Governor said on domestic growth

Domestic growth has ‘held up well’ due to steady urban consumption and ‘improving’ rural consumption, Governor Das stated. Based on this the MPC has decided for the monetary policy to ‘stay the course’ and keep a vigil on the inflation trajectory, he added.

11:08 AM

RBI MPC maintains FY25 inflation forecast, food prices remain a challenge

RBI Governor Shaktikanta Das noted that headline inflation reached 5.1 per cent in June 2024, driven by unexpected factors. While fuel prices remained in deflation for the tenth consecutive month, food inflation surged. Read here for a detailed story.

10:59 AM

Food inflation cannot be ignored: RBI Governor Das

Governor Das stated that food inflation, which has a weight of 46 per cent in headline inflation, cannot be ignored. He asserted that high food prices likely persisted in July, leading to the revision in the inflation forecast for the second quarter of the current financial year. Read here for a detailed story.

10:46 AM

Banks, NBFCs will be advised to take remedial action after global outage impacted industries: Governor Das

"The overall financial sector is healthy and stable. Banks and NBFCs will be advised to take remedial action. An unprecedented outage impacted industries globally, making it necessary for banks and financial institutions to build frameworks to maintain operational resilience," RBI Governor Das stated today.

10:38 AM

New technologies like AI pose new set of challenges for global economy: RBI Guv Shaktikanta Das

Manufacturing activities continue to gain ground on back of increasing domestic demand, services sector remains buoyant,RBI Governor Shaktikanta Das stated today. Household consumption is supporting turnaround in demand, with the dlobal economic outlook exhibiting steady, though uneven expansion, Das added.

 

10:30 AM

RBI Monetary Policy Meeting Live: MPC warns of spillover from persistent high food inflation

RBI Governor Shaktikanta Das emphasised that the MPC may overlook high food inflation if it is temporary but cannot ignore persistently high food inflation due to its potential spillover effects. The public primarily perceives inflation through the lens of food price, Das stated.

10:25 AM

RBI MPC Policy LIVE update: FY25 real GDP seen at 7.2%, says Shaktikanta Das

GDP growth projection remains unchanged at 7.2 per cent. The quarterly projections are:

 

- Q1FY25 GDP growth estimates at 7.1%

- Q2FY25: GDP growth estimates at 7.2%

- Q3FY25 GDP growth estimates at 7.3%

- Q4FY25 GDP growth estimates at 7.2%

10:24 AM

RBI Governor projects retail inflation at 4.5% during FY25 assuming normal monsoon

High food inflation also impacts household inflation expectation, RBI Governor Das stated today. 

10:15 AM

Domestic growth is resilient, supported by steady urban consumption, says RBI governor

The MPC determined that it is crucial for monetary policy to remain consistent while closely monitoring inflation. The panel emphasised maintaining a primary focus on inflation to support sustained economic growth, RBI Governor Shaktikanta Das said today.

10:12 AM

RBI MPC Meeting 2024 LIVE update: No change in MSF and SDF rates

The Marginal Standing Facility (MSF) and the Standard Deposit Facility (SDF) rates remain unchanged at 6.75 per cent and 6.25 per cent, RBI Governor Shaktikanta Das said today.

10:10 AM

Monetary policy update: RBI MPC votes 4-2 to maintain policy rates and 'withdrawal of accommodation' stance

10:06 AM

RBI MPC update: RBI keeps repo rate unchanged at 6.5%

The RBI kept its benchmark interest rate unchanged at 6.5 per cent for the nineth consecutive time.

9:53 AM

MPC will maintain its 'withdrawal of accommodation' stance: Infomerics Ratings

Manoranjan Sharma, chief economist of Infomerics Ratings, believes that the August 2024 policy is like “gazing into the crystal ball.” He predicted that the MPC will maintain its “withdrawal of accommodation” stance and keep the repo rate unchanged for the ninth consecutive time.