The only available yardstick for evaluating the tightness of monetary policy is the real interest rate. The nominal repo rate is useless for this purpose
The selection panel, comprising the governor of the Reserve Bank of India and government officials, will recommend probable candidates in the next two weeks
The six-member Monetary Policy Committee of the RBI has kept the policy repo rate unchanged at 6.5% since February 2023
The RBI MPC has also decided to keep its stance of 'withdrawal of accommodation' unchanged with a majority of 4-2
Monetary policy stance retained at 'withdrawal of accommodation' to aid the MPC's focus on bringing inflation towards the target
The rupee witnessed range-bound trading in initial deals against the US dollar on Thursday, ahead of the Reserve Bank of India's monetary policy outcome. Market participants are awaiting cues from the central bank's observation of recent events and its observations on food inflation which continues to remain high. Foreign fund outflows and gains in Brent crude price further dented investor sentiments. At the interbank foreign exchange, the rupee opened at 83.94 against the greenback, then touched 83.93, registering a rise of 2 paise over its previous closing price. On Wednesday, the rupee consolidated in a narrow range and settled for the day lower by 3 paise at 83.95 against US dollar. "Indian rupee was again sold off as it closed at 83.95 on Wednesday very close to the psychologically important level of 84.00. Market will await the monetary policy before checking on RBI allowing the rupee to fall further as it protects 83.96," said Anil Kumar Bhansali, Head of Treasury and Execu
RBI MPC policy meet: The Reserve Bank of India (RBI) is expected to hold the rate at 6.5 per cent again amid inflationary pressures. However, a cut may be possible going ahead
Investors are hopeful the RBI will soften its stance on inflation following the recent souring of global market sentiment
The six-member monetary policy committee (MPC), which includes three central bank officials and three external members, is recast every four years when the govt appoints a new set of external members
The RBI's monetary policy should be driven by domestic factors and not the Fed
MPC cannot ignore food inflation
According to a poll conducted by Business Standard ahead of the meeting, the central bank is expected to maintain a status quo for the ninth consecutive policy review
Move towards 4% target should provide signal for monetary policy to respond
Indian economy is poised for potentially a stable high growth phase and it is also in a strong position in the context of significant risks that the country is facing, RBI's monetary policy committee member Shashanka Bhide said on Sunday. Bhide further said with the growth of income that would support domestic demand and additions to production or supply capacity reflected by high levels of investment spending in the last couple of years, domestic economic activity is expected to sustain its momentum. "In terms of growth momentum and inflation trajectories Indian economy is poised for potentially a stable high growth phase. "It is also in a strong position in the context of significant risks that are also facing us," he told PTI. The current official estimate of GDP growth in 2023-24 is 8.2 per cent, accelerating from 7 per cent in the preceding year. Earlier this month, the Reserve Bank of India pegged the GDP growth rate for FY25 at 7.2 per cent. Bhide noted that the monsoon ..
The split in the views show a widening gap between the external and internal members on how to balance economic growth and inflation
Governor Shaktikanta Das on Friday said the Reserve Bank of India (RBI) may consider "further policy actions" only if it is confident of headline inflation staying put at 4 per cent. He said it is the central bank's core objective to align the inflation rate with the 4 per cent target, and added that no action on rates will be possible till the RBI is confident of it remaining at or below 4 per cent. Speaking to reporters at the customary interaction after choosing a status quo in rates for the eighth consecutive time, Das said as per the RBI's projections, consumer price inflation is coming at 3.8 per cent in the December quarter, but rising again later to touch 5 per cent. "It (inflation) has to align with the target and once it reaches 4 per cent, it has to stay there. When we will get confidence that this will stay at 4 per cent and will not go up, then we will think about further monetary policy actions," Das said. He was replying a specific question on when to expect a rate c
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.'
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
Following the outcome of the Lok Sabha Elections, concerns have escalated over a potential deceleration in fiscal consolidation coupled with amplified welfare spending
Trading in the equity market will largely depend on two major events this week - general elections result and the RBI interest rate decision - analysts said, adding that the benchmark indices may rally on Monday on exit polls' prediction of a massive win for the BJP-led NDA and strong GDP data. Exit polls on Saturday predicted that Prime Minister Narendra Modi will retain power for a third straight term, with the NDA expected to win a big majority in the polls. Counting of votes will take place on June 4. "All eyes are now on the most significant event of the past five years the outcome of the Lok Sabha elections, scheduled for Tuesday. Before that, market participants will react to the exit polls on Monday. "The market is approaching the event with caution, and the positive surprise from exit polls can lead to a rally as majority of the exit polls are giving 350+ seats to the NDA. Conversely, a negative surprise from actual results might trigger a knee-jerk reaction in the market,