RBI Monetary Policy Highlights: Future repo rate cuts not being ruled out, says Shaktikanta Das

The February 2020 MPC meet will have little room to analyse the budget implications since it will be held merely two days after the Union Budget.

Mint Road seems worried enough on inflation to look past four quarters of material decline in economic growth.... Read More

Pranjul Bhandari, chief India economistof HSBC tells CNBC-TV18 that this is not the end of the rate cut cycle by the MPC.

The market predictions for the February 2020 policy will be closely linked to what the government announces in the budget also scheduled in the same month.

While the status quo has come as a surprise to the market, hopes are high on a possible 25 basis points repo rate cut post the budget in February 2020.

The next meeting of the MPC is scheduled during February 4-6, 2020.

The minutes of the MPC’s meeting will be published by December 19, 2019.

RBI allows lenders to finance larger amounts on P2P platforms

For borrowers and lenders using peer-to-peer (P2P) platforms, the RBI has given reasons to cheer. The regulator has increased the lending cap for each individual lender from the current Rs 10 lakh to Rs 50 lakh.... Read More

The Indian market witnessed pared gains and slipped in red after the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) decided to maintain a status-quo stance on rates as against a 25 bps rate cut which was widely expected.

Taking Stock: RBI's 'temporary pause' hits D-St; Nifty holds 12k

Sectorally, the action was seen in IT, Consumer Durables, and Capital Goods stocks while on the losing front, telecom, metals, public sector indices witnessed selling pressure.... Read More

Zarin Daruwala, CEO, India, Standard Chartered Bank said, “The MPC took a pause from cutting the repo rate to take stock of rising inflation, the fiscal situation and the lagged impact of the recent measures announced by the Government. The MPC continued with its accommodative stance to support growth and has left the door open for future rate cuts. Additionally, the impetus for creating a secondary market for corporate loans should strengthen the system and provide liquidity ”

S Parthasarathy, Group CIO and Member of the Group Executive Board, Mahindra & Mahindrasaid that theMPC seems to have taken a cue from Benjamin Franklin’s quote-When in doubt, don’t. He added that continued accommodative stance as long as it is necessary to revive growth, suggests no change in direction and that is comforting.

RajnishKumar, Chairman,SBIsaid that the RBI decision for a status quo though an unanticipated policy surprise is the most appropriate as monetary policy works with a lag. The lowering of the GDP growth for FY20 and FY21 reflects continued growth conundrums and a slow recovery. On the development and regulatory front, the steps announced for the Primary (Urban) Co-operative Banks will facilitate increased public confidence in these institutions."