Page 3 - Monetary Policy Committee
RBI likely to reduce key repo rate when inflation stabilises: India Inc
India Inc welcomed the Reserve Bank's move to raise the growth outlook for FY25 and stated that it expects the Reserve Bank to reduce the key repo rate when inflation stabilises within its target band. The Reserve Bank, which has been mandated to ensure inflation remains at 4 per cent (with a margin of 2 per cent on either side), mainly factors in CPI while arriving at its monetary policy. It left the key interest rate unchanged as widely expected, keeping the focus on inflation amid robust economic growth that is likely to provide the new Modi government headroom for manoeuvring reforms. The central bank also retained its projection for retail inflation at 4.5 per cent for the current fiscal assuming a normal monsoon, while emphasising that uncertainties related to food price outlook warrant a close monitoring. Consumer Price Index (CPI)-based retail inflation has been projected at 4.5 per cent with quarter-wise projections at 4.9 per cent in Q1 (April-June), 3.8 per cent in Q2, 4
 "RBI likely to reduce key repo rate when inflation stabilises: India Inc")
Repo rate unchanged for 8th time, GDP raised: 5 key takeaways from RBI MPC
The decision to maintain the repo rate and raise the GDP forecast was made during the Monetary Policy Committee meeting held between June 5 and June 7
 "Repo rate unchanged for 8th time, GDP raised: 5 key takeaways from RBI MPC")
RBI monetary policy: When and where to watch the governor's announcement?
RBI Monetary Policy Committee meeting LIVE updates: Economists expect the central bank to maintain the repo rate at 6.5 per cent for the eighth consecutive time
 "RBI monetary policy: When and where to watch the governor's announcement?")
MPC meeting: How has inflation behaved since RBI hiked repo rate last year
The expectations for the RBI panel to begin cutting interest rates soon are there, however, the exact timing remains uncertain
 "MPC meeting: How has inflation behaved since RBI hiked repo rate last year")
BoE moves closer to first rate cut since 2020, as second official backs cut
The BoE said on Thursday its Monetary Policy Committee voted 7-2 to keep rates at a 16-year high of 5.25% after Deputy Governor Dave Ramsden joined Swati Dhingra in voting for a cut to 5%
 "BoE moves closer to first rate cut since 2020, as second official backs cut")
Last-mile challenges
US inflation is altering expectations
 "Last-mile challenges")
Anchoring expectations
Food prices are disrupting the disinflation process
Shifting expectations
No respite from US inflation and geopolitical tensions
India's consumption story gets a facelift as rural demand shows promise
FMCG companies have also witnessed a pick-up in rural areas.
 "India's consumption story gets a facelift as rural demand shows promise")
RBI's status quo on repo rate to impact retail auto sales, says Fada
Manish Raj Singhania, prez of FADA, said that favourable govt policies along with government spending, and the expected good monsoons, are likely to fuel demand, particularly in rural areas this year
 "RBI's status quo on repo rate to impact retail auto sales, says Fada")
The last mile
Climate issues can complicate monetary policy
 "The last mile")
Would like inflation elephant to return to forest, stay there: RBI Guv Das
RBI monetary policy: In no hurry to cut repo rate, MPC keeps status quo; retains FY25 growth, inflation forecasts
Monetary policy review: Optimism on growth, caution on inflation
Five of the six members of the RBI's MPC panel have voted for the status quo on both the policy rate and stance
 "Monetary policy review: Optimism on growth, caution on inflation")
REs must accord highest priority to governance, compliance: RBI Governor
Attempts to clear impression about widespread action; curbs only against outliers for major breaches
RBI monetary policy highlights: Last mile of disinflation is always challenging, sticky, says Governor Das
RBI MPC highlights: Catch all the highlights related to RBI's Monetary Policy Committee announcements here
 "RBI monetary policy highlights: Last mile of disinflation is always challenging, sticky, says Governor Das")
Inflation targeting framework is the focus: RBI governor Shaktikanta Das
The RBI projects CPI will be 4.5 per cent for the whole year, and growth will be 7%
 "Inflation targeting framework is the focus: RBI governor Shaktikanta Das")
First FY25 RBI MPC meeting: When, where to watch RBI governor's speech
RBI monetary policy: The MPC decision will be announced by Shaktikanta Das at 10 am on Friday, followed by a press conference at noon
 "First FY25 RBI MPC meeting: When, where to watch RBI governor's speech")
How monetary transmission may hold key to policy stance, Das clarifies
The monetary policy committee of the RBI had hiked the policy repo rate by 250 basis points (bps) between May 2022 and February 2023 before hitting a pause
 "How monetary transmission may hold key to policy stance, Das clarifies")
Best of BS Opinion: Democracy, autocracy, or both? Against the flow & more
Here is the best of Business Standard's opinion pieces for today
 "Best of BS Opinion: Democracy, autocracy, or both? Against the flow & more")
'No change in RBI's stance on underlying exposure to forex derivatives'
The RBI had said in January that effective April 5, exchanges may offer forex derivative contracts involving the rupee to users "for the purpose of hedging contracted exposure"
