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October 08, 2021 / 02:29 PM IST

RBI Monetary Policy Highlights: RBI's approach on liquidity is that of gradualism, says Shaktikanta Das

RBI Monetary Policy Highlights: RBI Governor Shaktikanta Das said core inflation remains sticky.

RBI Monetary Policy Highlights: The Monetary Policy Committee (MPC) has decided to maintain status quo and keep the repo rate unchanged at 4 percent. The reverse repo rate will continue to be 3.35 percent. Reserve Bank of India (RBI) Governor Shaktikanta Das said the policy stance continues to be "accommodative". This is the eighth consecutive time the MPC maintained a status quo in rates. The MPC
statement comes amid easing inflation and recovery in economic growth.
  • October 08, 2021 / 02:28 PM IST

    The live coverage of the RBI monetary policy announcement has ended. Thank you for tuning in! Stay tuned to Moneycontrol for more news, views and updates.

  • October 08, 2021 / 01:56 PM IST

    RBI Monetary Policy LIVE Updates: Naveen Kulkarni, Chief Investment Officer, Axis Securities: "RBI continues to be supportive of driving growth in the economy through benign interest rates, keeping liquidity conditions comfortable for all stakeholders. Unchanged policy rates and an accommodative stance keep up the optimism of market participants. Lower inflation projections from 5.7% to 5.3% for FY22 would be a  positive factor, signaling to harden interest rates unlikely in the near term. GDP growth remained at 9.5%, with upward revisions in Q2/Q3 FY22 hint at gradual recovery, as the aggregate demand is yet to pick up meaningfully." 

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  • October 08, 2021 / 01:20 PM IST

    RBI Monetary Policy LIVE Updates: Umesh Revankar, MD & CEO, Shriram Transport Finance: "We welcome RBI's unchanged accommodative stance as long as necessary, commitment to maintaining adequate system liquidity to support growth even as risks to inflation have inched up and core inflation remains sticky. Given the backdrop of lingering uncertainties regarding Covid, certain global developments this is positive step as while the recovery is gaining traction it still remains uneven, demand conditions are yet to fully recover to pre-pandemic levels and there is need for continued policy support. MSMEs, small businesses, unorganised sector have been worst hit during the pandemic and we welcome the RBI’s continued policy support towards these sectors."

  • October 08, 2021 / 01:03 PM IST

    RBI Monetary Policy LIVE Updates: Vikash Khandelwal, CEO, Eqaro Guarantees: "The central bank kept the key rates and policy stance unchanged for the 8th time in a row thus allaying concerns around a possible unwinding or availability of adequate liquidity. The overall recovery especially in the services and the technology-driven sectors coupled with inflation being well within RBI’s comfort levels helped the central bank stay with the current excess levels of system liquidity.  This should help boost economic growth, credit offtake and is a big sentiment booster for the bond market. The ombudsman for NBFCs will help strengthen the grievance redressal mechanism and lead to a speedy resolution."

  • October 08, 2021 / 12:46 PM IST

    RBI Monetary Policy LIVE Updates: The equity market cheered the continuity in policy support after the Reserve Bank of India's MPC eft key policy rates unchanged and retained the accommodative stance in its bi-monthly policy meeting.

    The benchmark indices extended gains with the Nifty50 rising 123 points to 17,913.50 and the BSE Sensex trading above the 60,000 mark at 60,111.55 with gains of 433.72 points at 11:36 hours IST.

    Read: MPC maintains status quo on repo; 12 rate-sensitive stocks with potential to return up to 29%

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  • October 08, 2021 / 12:35 PM IST

    RBI Monetary Policy LIVE Updates: Ram Raheja, Director, S Raheja Realty:  “The decision to maintain the repo rate and reverse repo rate by the RBI is in line with expectations. It has also affirmed to its accommodative stance, which will provide stability to the markets and give much-needed liquidity. This status quo will further allow demand creation including for high involvement products like real estate. RBI's resolve to keep easy system liquidity and low interest is key to the recovery of the real estate industry and the overall economy. The real estate sector is expected to continue benefiting from the pass-through of low benchmark lending rates to end consumers, especially in the residential segment. The optimism of RBI regarding economic growth is welcome; It will also help in sustaining economic stability as well as keep the real estate sector stay afloat during these unprecedented times. The demand for homes is likely to continue to gain momentum going forward’’

  • October 08, 2021 / 12:33 PM IST

    RBI Monetary Policy LIVE Updates: About the sharp rise in fuel prices, the RBI Governor said the central bank has flagged the issue to the government. He said the government has taken several measures on pulses, edible oils and certain other supply side issues.

  • October 08, 2021 / 12:31 PM IST

    RBI Monetary Policy LIVE Updates: “The government is discussing with authorities to clarify issues on global bond inclusion. Hopefully, global bond inclusion should happen in the next few months,” said RBI Governor Shaktikanta Das.

    RBI Deputy governor Michael Patra said “Will wait to see recovery getting strongly entrenched. RBI has all the adequate instruments; the issue is of timing and calibration”

  • October 08, 2021 / 12:21 PM IST

    RBI Monetary Policy LIVE Updates: Addressing the media, Shaktikanta Das said the RBI's overall approach on liquidity is that of gradualism. With the VRRR announcement, he said the central bank is following "the roadmap we have already set".

  • October 08, 2021 / 12:05 PM IST

    RBI Monetary Policy LIVE Updates: The central bank has announced geo-tagging of payments system to enhance the payment acceptance infrastructure.

    The geo-tagging technology will provide location information on an ongoing basis and can be used in targeting areas that lag behind in payments acceptance infrastructure.

    The RBI will propose a framework for geo-tagging by capturing geographical coordinates - latitude and longitude of physical payment acceptance infrastructure, like Point of Sale (PoS) terminals and Quick Response (QR) codes, used by merchants.

    Read the full story

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  • October 08, 2021 / 11:51 AM IST

    RBI Monetary Policy LIVE Updates: Madhavi Arora, Lead Economist, Emkay Global Financial Services: “The MPC expectedly kept the key rates unchanged unanimously and reiterated its accommodative stance both on rates and liquidity. However, Prof Varma’s dissent on continuation of accommodative stance for foreseeable future continues to keep MPC in splits. Inflation forecast is expectedly reduced to 5.3% from 5.7% for FY22 (Emkay: 5.2%), while GDP growth remains unchanged at 9.5% (Emkay: 10.1%).  The RBI's stance on liquidity management was the most watched for. As we expected, the RBI did not shock the system with a reverse repo hike, and the policy is well used as a lever to prepare markets for a gradualist approach toward normalization through both communication and action. 

  • October 08, 2021 / 11:39 AM IST

    RBI Monetary Policy LIVE Updates: Key takeaways from the RBI Governor's address: 

    > The MPC has maintained monetary policy status quo status quo for the eight time in a row. The repo rate is unchanged at 4 percent while the reverse repo rate kept the same at 3.35 percent.
    > The projection for real GDP growth is retained at 9.5 percent for FY 2021-22. This consists of 7.9 percent in Q2, 6.8 percent in Q3 and 6.1 percent in Q4 of 2021-22. The Real GDP growth for Q1 of FY 2022-23 is projected at 17.2 percent.

    > The central bank has lowered its FY22 CPI Inflation target to 5.3 percent from the earlier 5.7 percent. It also saw July-September CPI inflation at 5.1 percent compared to the 5.9 earlier. The October-December CPI Inflation is estimated at 4.5 percent compared to the 5.3 percent earlier.

    Read the full story

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