Page 2 - Monetary Policy

Monetary policy: No concern on growth, no comfort on inflation

The RBI estimate of growth, as well as, inflation for the current financial year remains unchanged, but there has been some fine-tuning

RBI MPC Meet: Repo rate unchanged at 6.5%, check GDP, CPI projections here

The RBI MPC has also decided to keep its stance of 'withdrawal of accommodation' unchanged with a majority of 4-2

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

RBI's proposed liquidity norms expected to raise demand for bonds

The new norms will pose requirements for higher liquid assets for the banks to shore up their LCRs

No plans to allow business houses to promote banks: RBI Governor Das

Governor Shaktikanta Das on Friday said the Reserve Bank does not have any plan to allow business houses to promote banks at present. Allowing corporate houses to promote banks exposes one to conflict of interest risks and related-party transactions, Das said, speaking at an event organized by the Financial Express here. "At this point, there is no thinking in that direction," Das said, replying to a specific query on whether there is any consideration to allow business houses. The RBI had disqualified a long list of conglomerates from floating a lender in the last round of licensing around a decade ago. The issue was revived again in 2020, with a Reserve Bank of India (RBI) working group supporting it, given the potential to get the capital for helping meet the country's growth aspirations. Underlining that banks are different from other businesses, he said experience worldover has shown potential conflicts of interest and issues relating to related-party transactions, if busines

With growth steady, policy must focus on inflation: RBI Governor Das

Reserve Bank Governor Shaktikanta Das on Friday said the monetary policy has to be "clearly and unambiguously" focused on inflation in an environment like the current one, where growth is steady. Amid a debate around neutral rates, Das said "theoretical and abstract concepts" as arrived at are based on a person's judgment and cannot determine the policy in the real world. It can be noted that the RBI has been steadfastly maintaining the status quo on interest rates, and there is increasing dissent among some members of the rate-setting panel who are in favour of rate cuts to promote economic growth lately. Replying to those who flag the impact on growth because of the elevated interest rates, Das said that the growth has been robust even with the current interest rates and added that RBI is optimistic that its 7.2 per cent real GDP expansion estimate for FY25 is being achieved. Moreover, the nowcast team is pointing towards a 7.4 per cent growth in the June quarter as against the .

Toronto home sales rise in June after four straight months of decline

The Bank of Canada cut rates by 0.25 per cent to 4.75 per cent in early June, saying monetary policy no longer needed to be as restrictive

Switch to India's longer-dated bonds extends as index inclusion date nears

While news of Modi's poor electoral showing triggered a bond selloff, the market later recovered after cabinet appointments including FM Sitharaman were seen to indicate no change

BoE keeps key interest rate at 16-year high of 5.25% despite inflation fall

The Bank of England on Thursday kept its main interest rate at a 16-year high of 5.25 per cent, even though inflation has fallen to its target of 2 per cent. In a statement, some policymakers on the bank's nine-member Monetary Policy Committee voiced worries that some underlying measures of inflation, such as in the services sector, remain elevated, which could be stoked further if interest rates are cut too soon. The decision, which was widely anticipated by economists, is likely to disappoint the governing Conservative Party ahead of the UK's general election in two weeks time. A cut would have been seized upon by Prime Minister Rishi Sunak as positive economic news.

RBI maintains status quo, raises FY25 GDP growth forecast to 7.2%

Economists see shallow rate cut in Oct-Dec quarter

Last mile journey to 4% inflation target is sticky: RBI Governor Das

Even the high rates of growth are enabling us to catch up with that level. So, no, signs of over- heating. On rate hikes being off the table, nothing is off the table.

Monetary policy review: RBI resolutely on hold amid comfort over growth

India's GDP growth to remain strong, two members of the MPC see the need for monetary policy easing, likely to support growth. How does one reconcile the two?

RBI MPC highlights: Last mile of our journey towards 4% inflation target is sticky, says Governor

RBI MPC Meeting highlights: RBI Monetary Policy Committee (MPC) kept the repo rate unchanged at 6.5% for the eight consecutive time and will continue with its stance of 'withdrawal of accommodation.'

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

RBI may keep interest rates on hold as slim Modi win boosts fiscal risks

Economists had already been pushing their forecasts for rate cuts to later in the year, predicting the RBI won't move until the US Federal Reserve pivots

Rupee rises 1 paisa to 83.43 against US dollar in early trade

The rupee inched up 1 paisa to 83.43 against the US dollar in early trade on Thursday on the back of a weak American currency and positive domestic equity markets. Forex traders said an upward movement in the crude oil prices resisted a sharp rise in the Indian currency even as investors moved cautiously ahead of the RBI's monetary policy decision to be announced on Friday. At the interbank foreign exchange market, the local unit opened at 83.40 and slipped to 83.43 against the greenback, trading 1 paisa higher from its previous close. On Wednesday, the domestic currency settled 7 paise higher at 83.44 against the dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.15 per cent lower at 104.06. Analysts attributed the weakness in the dollar index to a sharp fall in US Treasury yields after the latest data showed private sector job growth in May was slower than estimated, raising expectations of an interest rat

Interest rates have peaked, moderation expected towards year-end: PNB MD

Days before RBI's monetary policy, Punjab National Bank (PNB) managing director Atul Kumar Goel said interest rates have peaked and are expected to see a reversal by the end of this year. The Monetary Policy Committee, which is expected to keep the policy rate unchanged for the eighth time in a row, is scheduled to begin its meeting on June 5. The decision of the rate-setting panel will be announced on June 7. "Interest rates are contingent upon so many factors like growth, inflation, monetary policy stance of other countries. I think rates have reached the peak. I think after some time maybe by the end of this year, we can see some reduction in the rate of interest," he told PTI. There should not be an increase in the deposit rate as 95 per cent of deposits have already been repriced, he said. Goel said the Retail, Agriculture and MSME (RAM) segment is going to be the focus area for the bank but would not shy away from financing good corporate loans. "RAM is about 55 per cent of

MPC likely to maintain status quo for eighth time in a row: BS poll

Respondents cite moderate inflation data, outlook for food prices, high growth

Of cricket and monetary policy

The June policy will be one of status quo in every way. There will be no change in rate or stance

Monetary policy: RBI unlikely to cut interest rate on June 7, say experts

Reserve Bank of India (RBI) is unlikely to cut the benchmark interest rate at its upcoming monetary policy review meeting, taking place soon after the announcement of the Lok Sabha election results, amid inflation challenges, said experts. The Monetary Policy Committee (MPC) may also refrain from rate cut as economic growth is picking up, notwithstanding the elevated interest rate of 6.5 per cent (repo) prevailing since February 2023. The meeting of the Reserve Bank Governor Shaktikanta Das headed MPC is scheduled for June 5 to 7. The decision will be announced on June 7 (Friday). Results of the Lok Sabha elections will be announced on June 4. The central bank last hiked the repo rate to 6.5 per cent in February 2023 and since then it has held the rate at same level in its previous six bi-monthly policies. If the interest rate remains untouched again on June 7, it would be the eighth time for the RBI to maintain the status quo on the benchmark repo rate. On expectations from the J