RBI's Monetary Policy Committee has kept the repo rate at 6.5% since February 2023. Retail inflation hit a 14-month high in October
The central bank has held interest rates at their highest since early 2019 for the past 10 meetings
Food inflation, which accounts for nearly half of the consumption basket, rose to 9.24 per cent in September, compared to 5.66% a month prior
The industry experts believed that a rate cut would have helped the momentum to continue amid the festive quarter
Uncertainty remains elevated on a number of fronts, not least on the path for food inflation and external tensions
Stock Market Today: GIFT Nifty futures indicated a slightly positive bias for markets at open today.
Realtors' apex body Credai on Wednesday said the RBI should have cut key interest rates to boost housing demand during the current festive season and demanded that the apex bank must consider lowering the repo rate in the next meeting. The Reserve Bank of India (RBI) kept its key interest rate unchanged on Wednesday but took the first step towards a rate cut as it eased its relatively hawkish policy stance to 'neutral'. Credai National President Boman Irani said, "As RBI remains cautious regarding potential inflationary pressures, the central bank's decision to keep the repo rate unchanged at 6.5 per cent - albeit with a revised neutral stance - seems somewhat like a missed opportunity, especially with the festive season around the corner". A rate cut at this juncture would have provided the ideal boost to accelerate consumer demand across industries, he added. Irani expects the central bank to cut rates in the next quarter. Realtors' body Naredco President G Hari Babu suggested t
RBI Monetary Policy Meeting October 2024 highlights: Catch all the latest news updates on RBI's monetary policy announcements here
RBI meeting: RBI maintains status quo on repo rate but changes stance to 'Neutral'; what does it mean for the markets? Experts decode
At 6:34 AM, GIFT Nifty Futures were trading 25 points higher at 25,157, suggesting a flat to positive start for Indian markets.
Stock Market Today: Analysts anticipate a weak Q2FY25, with potential profit dips due to declining refining margins for Reliance Industries.
At 6:40 AM, GIFT Nifty futures were trading 89 points higher at 25,262 levels, suggesting a robust opening for the markets.
Amid suggestions for excluding food inflation while setting benchmark interest rates, former RBI Governor Raghuram Rajan has said that he is against excluding food prices from headline inflation, as it would erode the 'great faith' of people in the central bank, which has been mandated by the government to keep inflation in check. Rajan further said it is best that inflation target a basket which is what the consumer consumes because that affects the consumers perception of inflation and ultimately inflationary expectations. "When I came into office, we were still targeting PPI (producer price index). Now that has no bearing to what the average consumer faces. "So, when the RBI says inflation is low, look at PPI, but if the consumer is facing something very different, then they do not really believe that inflation is down," he told PTI. Rajan was responding to a question on suggestions made in the Economic Survey 2023-24 for excluding food inflation while setting benchmark interest
Inflation held below the RBI's medium-term target of 4.0 for a second month in August
The trend of central banks following their American counterpart's lead is not always certain
The six-member Monetary Policy Committee of the RBI has kept the policy repo rate unchanged at 6.5% since February 2023
The real estate industry experts are expecting the move to continue the growth momentum in the sector
The RBI MPC has also decided to keep its stance of 'withdrawal of accommodation' unchanged with a majority of 4-2
Alternative investment avenues are becoming more attractive to retail customers, the Reserve Bank of India (RBI) said while unveiling the monetary policy on Thursday, August 08
Monetary policy stance retained at 'withdrawal of accommodation' to aid the MPC's focus on bringing inflation towards the target