In the minutes of the Monetary Policy Committee meeting, RBI Governor Urjit Patel said that for efficient monetary transmission, it is important that interest rates on small savings are not out of line with interest rates on other comparable instruments in the financial system.
Earlier this month, the Reserve Bank of India raised a secondary rate while holding the key repo rate steady to mop up excess liquidity from the government's demonetisation drive, making it the fourth meeting in a row it has surprised markets.
According to the global financial services major, inflation risks are overdone and noted that food inflation is coming off while El Nino is a swing factor and commodity prices are likely to stabilise in 2017, reducing the pressure on imported inflation.
According to the global financial services major, the RBI's decision to narrow the policy rate corridor by raising the reverse repo rate and lowering the MSF rate killed several birds with one stone.
The RBI held the repo rate at 6.25 percent on Thursday, as widely expected, and raised its inflation forecasts, increasing expectations it could even tighten should prices accelerate.
While leaving the repo rate intact, the Reserve Bank said it will take steps to deal with the mounting problem of bad loans in the banking sector and try to keep inflation in check.
Reserve Bank spared the already beleaguered banks any further burden in its effort to suck out excess liquidity from the banking system, yet it tempered its kindness with a stern warning on inflation.
Central bank announces regulatory changes such as raising reverse repo to 6% and allowing banks to invest in REITs.
The RBI kept its repo rate unchanged at 6.25 percent for a third consecutive policy meeting on Thursday as it continues to guard against a potential flare-up in inflation and an uncertain global economic environment.
RBI governor Urjit Patel says farm loan waiver undermines a honest credit culture and discipline. He says that it can also lead to crowding out of private borrowers.
The Nikkei/IHS Markit Services Purchasing Managers' Index rose to 51.5 in March, its highest level since October, from February's 50.3. A reading above 50 indicates expansion.
According to a CNBC-TV18’s MPC Poll, 100 percent participants expect no repo rate cut in the meeting. For the current year – 2017 – 80 percent respondents expect no cut, while 10 percent a 25 basis point cut. Another 10 percent also expect a 25 bps hike in repo rate in the on-going year.
Department of Economic Affairs (DEA) is likely to meet banks on Friday on the need for new instruments in the monetary policy tool kit for liquidity absorption, sources told CNBC-TV18.
The finance ministry wants to discuss implementing a new framework called a "standing deposit facility" that would drain the surplus cash at a rate lower than the repo rate without the need for any collateral, the letter said.
On an average, the CPI inflation will be at 4.5 percent in 2017, said Indranil Pan, Chief Economist at IDFC Bank. He sees CPI inflation cross 4 percent in March.
Official data showed India's gross domestic product (GDP) grew 7 percent annually for the quarter, sharply beating expectations for a 6.4 percent growth rate in a Reuters poll. The economy slowed from the September quarter's 7.3 percent annual growth rate.
While three members highlighted the need to change the stance from accommodative to neutral, four mentioned that inflation excluding food and fuel remains â€œstickyâ€ at close to 5 percent
While the consensus view in the survey of 45 economists pointed to the policy repo rate staying unchanged at 6.25 percent until July-September quarter 2018, a little less than one-fifth still predicted a cut as early as April-June this year.
The Reserve Bank of India (RBI) on Wednesday, February 8, 2017, surprised the market by keeping the repo rate unchanged at 6.25% in its monetary policy review. This has disappointed the market in general R
The Reserve Bank of India (RBI), on February 8, 2017, kept its policy rate unchanged at 6.25%. This decision has been greeted with surprise, by the real estate fraternity. â€œWhile the recent demonetisation drive R
Reserve Bank of India Governor Urjit Patel, known for calling RBI an â€œowlâ€, may have turned hawkish on its monetary policy stance towards the year end.
Since January 2015, the Reserve Bank of India (RBI) has cut the repo rate by 175 basis points or 1.75 percentage points from 8 percent to 6.25 percent.
In its first monetary policy review in 2017, on February 8, the Reserve Bank of India (RBI) has decided to keep key rates unchanged. Accordingly, the repo rate at which it lends to the R
The change in the Reserve Bank's monetary stance from 'accommodative' to 'neutral‘, which essentially hints the chances for future rate cuts are limited. But bankers suggest otherwise.
On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25 percent.