RBI Monetary Policy Meeting Dec 2024 Updates: Catch all the updates here
Interest rates likely to stay the same for now, but lenders may still adjust terms based on their considerations
Reserve Bank of India Monetary Policy Committee: Food prices likely to keep headline inflation up in the near future
The RBI is expected to revise its growth forecast for the financial year 2024-25 following low Q2 GDP figures
Patra said that under heightened uncertainty, discretion in forward guidance has increasingly gained legitimacy among major central banks
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
Inflation held below the RBI's medium-term target of 4.0 for a second month in August
The FOMC meeting is widely expected to see policy rates reduced by 25 or 50 bps, but investors will also be looking at the Fed's commentary to determine the frequency and quantum of future rate cuts
Monday's reverse repo operation was meant to "keep month-end banking system liquidity conditions reasonably ample," the central bank said in an online statement.
The latest increase in MCLR by SBI comes days after the RBI left the repo rate unchanged at 6.5 per cent
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
An external member of the MPC highlighted that India's economic growth is below potential, with weak consumption contributing to the slowdown
Internal members, however, cited food inflation risk for maintaining the status quo and said the last mile of disinflation has been slow
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.
The rate-setting panel unanimously voted to hold the policy rate at the 23-year high mark
The State Bank of Pakistan reduced the target rate by 150 basis points to 20.50 per cent, compared to a median estimate for a 100 basis point cut. Only two economists predicted the decision
Respondents cite moderate inflation data, outlook for food prices, high growth