RBI MPC Meeting Highlights: The MPC has on August 10 unanimously voted to leave the repo rate unchanged at 6.5 percent, RBI Governor Shaktikanta Das announced today. The Standing Deposit Facility rate is also retained at 6.25 percent; and the Marginal Standing Facility rate, Bank Rate is also retained at 6.75 percent. The MPC has also decided to remain focused on the withdrawal of accommodation with preparedness to act should the situation so warrant.
The Reserve Bank of India's Monetary Policy Committee (MPC), has three members from the RBI and three external members. During the last MPC meeting in June, the repo rate was left unchanged. Today's decision marks the third time rates have been left unchanged. The central bank had earlier raised repo rates by a total of 250 bps since May 2022 with an aim to tackle inflation.
This is the third MPC meeting this fiscal. The MPC consists of three external members and three officials of the RBI. The external members of the panel are Shashanka Bhide, Ashima Goyal, and Jayanth R Varma. Besides Governor Shaktikanta Das, the other RBI officials in MPC are Rajiv Ranjan (Executive Director) and Michael Debabrata Patra (Deputy Governor).
Our live coverage of the RBI MPC meeting has ended. Thank you for following along with the latest updates on monetary policy. Stay tuned to Moneycontrol for comprehensive analysis and insights on the outcomes and their impact.
RBI MPC Meeting LIVE Updates: Talks with Japan are exploratory in nature
RBI Deputy Governor T Rabi Sankar: We are happy that a country such as Japan is interested in the UPI. At this stage, our talks with Japan are exploratory in nature.
RBI MPC Meeting LIVE Updates: Incremental CRR was not the only tool available, says Guv Das
RBI Governor Shaktikanta Das: Incremental CRR was not the only tool available to us to deal with the liquidity overhang. But we judged it was the best option at the current juncture.
RBI MPC Meeting LIVE Updates: Not concerned about any implication of any Russian investment, says Guv Das
RBI Governor Shaktikanta Das: We are not concerned about any implication of any Russian investment of surplus rupee balance in government securities. We have foreign exchange reserves of more than $600 billion. We are confident of dealing with any situation (outflow) if it arises, but we don’t think it will happen.
RBI MPC Meeting LIVE Updates: Russian investment in Indian government securities
RBI Deputy Governor T Rabi Sankar: We can’t provide specific details on how much Russia has invested in Indian government securities. There are certain routes in which it can be done. But there should not be any liquidity impact of these investments.
RBI MPC Meeting LIVE Updates: We are nimble in our liquidity actions, says Guv Das
RBI Governor Shaktikanta Das: We are nimble in our liquidity actions. As and when required, we do fine-tuning operations on both sides – repo and reverse repo. We monitor the situation constantly. Liquidity is a dynamic figure and we can't specify if there is a comfortable level.
RBI MPC Meeting LIVE Updates: incremental CRR for scheduled banks will affect liquidity by a little above Rs 1 lakh crore
RBI Governor Shaktikanta Das: Private investment is happening in some key sectors, such as iron and steel, automobiles, petroleum, metals, and chemicals. Going forward, it should happen in other sectors too because the ground conditions are favourable.
RBI Governor Shaktikanta Das: Internal calculations show that the incremental CRR for scheduled banks will affect liquidity by a little above Rs 1 lakh crore.
RBI Governor Shaktikanta Das: September 8 review of incremental CRR for banks will depend on conditions prevailing at the time. So I don’t want to pre-judge what the review will say. The review can happen even before September 8.
RBI MPC Meeting LIVE Updates: Update on UPI linkage with other countries
RBI Governor Shaktikanta Das: UPI linkage has been done with Singapore. RuPay cards are used in a few countries. We have signed an MoU with UAE for linking UPI with their fast payments system. It will happen in the coming months. Discussions are on with other countries, including some advanced countries, to link UPI.
RBI MPC Meeting LIVE Updates: Excess liquidity has to be dealt with, says Guv Das
RBI Governor Shaktikanta Das: There is excess liquidity that has to be dealt with. But there are periods when there could be liquidity pressure, such as when tax payments are made to the government. But this deficit is temporary and lasts only a few days.
RBI Governor Shaktikanta Das: Financial sector stability is well maintained. The RBI looks forward to co-operation from the players in the sector.
RBI MPC Meeting LIVE Updates: Incremental CRR was considered necessary, says Guv
RBI Governor Shaktikanta Das: The incremental CRR was considered necessary in the background of the liquidity overhang. We considered it desirable in the interest of financial and price stability. It will have an impact on inflation also. It is a purely temporary measure.
RBI MPC Meeting LIVE Updates: Spike in CPI inflation is expected to be short-lived, says Das
RBI Governor Shaktikanta Das: The recent spike in CPI inflation is expected to be short-lived going by past trends. In such situations, we need to be watchful and not resort to knee-jerk reactions.
RBI MPC Meeting LIVE Updates: India is emerging as the new growth engine for the world. says Das
RBI Governor Shaktikanta Das: India is emerging as the new growth engine for the world. In a highly volatile and uncertain world, India is standing out for its resilience and stability.
RBI MPC Meeting LIVE Updates: DK Joshi, Chief Economist, CRISIL
Mint Road seems staunchly focused on keeping consumer inflation within the 4% target, while standing pat on rates and monetary policy stance. Additionally, the introduction of incremental cash reserve ratio could temporarily harden short-term rates. CPI-based inflation was on a falling trajectory and appeared to have peaked during the June monetary policy review.
But the recent spike in food inflation has created an upside to the RBI’s July-September CPI forecast of 5.2% — a number it now sees rising to 6.2%.
RBI MPC Meeting LIVE Updates: RBI presser details
Attendees: Shaktikanta Das, Michael D Patra, T Rabi Sankar, Swaminathan J, MR Rao
Time: 12 PM
RBI MPC Meeting LIVE Updates: Quick impact of Incremental CRR - Madhavi Arora, Emkay
Imposition of Incremental CRR (ICRR) of 10% on NDTL (for period of May 19 to July 28 ) would imply a temporary liquidity depletion of ~Rs1.15tn/Rs996bn (ex of HDFC twin merger). This assumes an effective CRR of 14.5% for the period concerned (4.5%+10%). However, if we assume the ICRR of 10% to include the existing CRR of 4.5%, the liquidity depletion would amount to Rs650bn/Rs548 bn ex of HDFC twin merger. We await clarity on RBI’s assessment of ICRR in the press conference. But we believe it has to be the former (i.e 14.5% effective CRR).
RBI MPC Meeting LIVE Updates: What experts are saying
The decision to maintain policy rates will enhance consumer demand in the face of moderate inflation, which will further contribute to economic growth. This stance is expected to boost the confidence of potential homebuyers, as the affordability factor remains steady. Since the beginning of the interest rate upturn, there has been a total increase of 250 basis points in the repo rate, leading to a corresponding 160 basis points rise in home loan rates.
We exercise caution regarding the housing market, particularly in the affordable and mid segments, which are sensitive to pricing and have felt some impact from previous rate hikes. Nonetheless, a prolonged pause in the policy rate is likely to provide support to the housing market.
- ShishirBaijal, Chairman & Managing Director of Knight Frank India
RBI MPC Meeting LIVE Updates: Stock market analysts are recommending the 'buy on dips'
Stock market analysts are recommending the 'buy on dips' approach for certain sectors that are sensitive to changes in interest rates. The Reserve Bank of India has maintained the repo rate at 6.50% for the third consecutive time. Following this decision, financial experts anticipate fluctuations in industries such as banking, non-banking financial companies (NBFCs), automotive, real estate, and infrastructure.
RBI MPC Meeting LIVE Updates: RBI imposes ICRR of 10% on deposits received by banks
RBI imposes Incremental CRR (ICRR) of 10% on deposits received by banks between May 19-July 28,' says RBI Governor Shaktikanta Das. Adds that measure is temporary & aimed at mopping up excess liquidity due to return of Rs 2000 notes.
RBI MPC Meeting Live Updates: FY24 inflation now seen 30 bps higher at 5.4%, big hike in Q2 forecast
The Reserve Bank of India (RBI) on August 10 made an upward revision to its inflation forecast for 2023-24, raising it by 30 basis points to 5.4 percent.
Driving the full-year inflation forecast hike was that for the second quarter, which is now seen at 6.2 percent - a full hundred basis points higher than previously hoped - due to a sharp increase in vegetable prices. See details
RBI MPC Meeting Live Updates: RBI may use AI in conversational payments on UPI
The Reserve Bank of India (RBI) on August 10 said that it will consider conversational payments on unified payments interface (UPI) through artificial intelligence (AI).
The central bank has proposed this measure with the objective to harvest new technology enhancements for users, he added. Read more
RBI MPC Meeting 2023: Key highlights so far from the MPC review
The RBI kept the policy repo rate unchanged at 6.50% for the third consecutive time on August 10.... Read More
RBI MPC Meeting Live Updates: Made good progress in sustaining India's growth momentum, says Governor Shaktikanta Das
"We have made good progress in sustaining India's growth momentum. In charting the course of monetary policy, we continuously assess incoming data. We reiterate our commitment to aligning CPI to 4 percent target on a durable basis."
RBI MPC Meeting Live Updates: Reactions - VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The MPC has delivered in line with market expectations on rates, stance and tone, with retention of rates and stance and the tone turning hawkish. The significant change is the upward revision in FY24 CPI inflation projection from 5.1% to 5.4%. This means the high policy rates will remain high for long and, therefore, a rate cut can be expected only in Q1 FY25. From the market perspective, there are no positive or negative surprises in the policy.
RBI MPC Meeting Live Updates: RBI Governor Speech Highlights
Language of the monetary policy suggested that the RBI is clearly on a wait-and-watch mode as inflationary fears continue to loom large over the economy
RBI MPC Meeting Live Updates: Frictionless credit delivery under development by Reserve Bank Innovation Hub
A public tech platform for frictionless credit delivery is being developed by the Reserve Bank Innovation Hub. The platform will be rolled out as a pilot project in a calibrated manner. It will have an open architecture, API to which all financial sector players can connect seamlessly. This will accelerate penetration of credit and deepen financial inclusion: Governor Shaktikanta Das
RBI MPC Meeting Live Updates: Offline payments in UPI
Propose to enable conversational payments in UPI. Introducing offline payments for Rs 200-500 in UPI using near field tech via UPI Lite: Governor Shaktikanta Das
RBI MPC Meeting Live Updates: Propose framework to base EMI interest rates on floating rates, says Governor Shaktikanta Das
Propose to put in place a transparent framework in the resetting of interest rates of EMI installments based on floating rates. The framework will require clear communication, options to switch to fixed rates or foreclosure of loan, among other things. These measures will further strengthen consumer protection.
RBI MPC Meeting Live Updates: Key highlights from the MPC announcement by Governor Shaktikanta Das
— Repo rate unchanged at 6.50 percent for the third consecutive time
— GDP projection for FY24 stays unchanged at 6.5 percent
— CPI inflation forecast for 2023-24 raised to 5.4 percent from 5.1 percent
— Policy stance unchanged at ‘Withdrawal Of Accommodation’ with 5 of 6 MPC members supporting for this stance.
— The MPC will remain watchful of inflation and remains resolute to its commitment to align inflation to the targeted level
RBI Policy: As inflation fears continue, MPC keeps repo rate unchanged yet again
The RBI announcement came in the wake of recent spike in inflation triggered by high prices of food items... Read More
RBI MPC Meeting Live Updates: Incremental CRR of 10% for banks, says Governor Shaktikanta Das
-- Starting fortnight August 12, banks will have to maintain an incremental CRR of 10% on the increase in their NDTL between May 19 and July 28: Governor Shaktikanta Das
-- The existing CRR remains unchanged. The incremental CRR of 10% for banks is intended to absorb the surplus liquidity that has been generated and is purely a temporary measure to manage the liquidity overhang. There will remain adequate liquidity in the banking system despite the move. This decision will be reviewed on September 8 or even earlier.
RBI MPC Meeting Live Updates: CPI inflation forecast for 2023-24 raised to 5.4 percent from 5.1 percent, says Governor Shaktikanta Das
-- CPI inflation forecast for July-September 2023 raised to 6.2 percent from 5.2 percent
-- CPI inflation forecast for October-December 2023 raised to 5.7 percent from 5.4 percent
-- CPI inflation forecast for January-March 2024 retained at 5.2 percent
-- CPI inflation forecast for April-June 2024 pegged at 5.2 percent
RBI MPC Meeting Live Updates: A substantial increase in headline CPI inflation will occur in the near future, says Governor Shaktikanta Das
-- CPI inflation forecast for 2023-24 raised to 5.4 percent from 5.1 percent
-- Risks to CPI inflation forecast evenly balanced
RBI MPC Meeting Live Updates: GDP growth forecast for 2023-24 retained at 6.5 percent, says Governor Shaktikanta Das
-- GDP growth forecast for April-June 2023 retained at 8.0 percent
-- GDP growth forecast for July-September 2023 retained at 6.5 percent
-- GDP growth forecast for October-December 2023 retained at 6.0 percent
-- GDP growth forecast for January-March 2024 retained at 5.7 percent
-- GDP growth forecast for April-June 2024 pegged at 6.6 percent
RBI MPC Meeting Live Updates: Highlights of Governor Shaktikanta Das' announcement
-- MPC voted in 5:1 majority to maintain ‘withdrawal of accommodation’ stance
-- MSF Rate & Bank Rate unchanged at 6.75%
-- SDF rate unchanged at 6.25%
-- Inflation expected to surge in July-August due to vegetable prices
-- MPC remains resolute to align inflation to its 4% target
RBI MPC Meeting Live Updates: Economic activity in India is positive, says Governor Shaktikanta Das
-- Momentum of overall economic activity in India continues to be positive
-- High-frequency data is suggestive of incipient recovery in rural demand
RBI MPC Meeting Live Updates: Global economies remarkble resilient, says Governor Shaktikanta Das
-- A number of economies have demonstrated remarkable resilience and the grim prospect of a hard landing is easing.
-- Globally, policy rates could stay higher for longer.
RBI MPC Meeting Live Updates: Earlier rate hikes working through the economy, says Governor Shaktikanta Das
-- Cumulative rate hike of 250 bps from FY23 is working its way through the economy
-- MPC remains resolute in its commitment to align inflation with the 4% target and anchor inflation expectations.
-- Global economy continues to face daunting challenges
RBI MPC Meeting Live Updates: Repo rate unchanged, says Governor Shaktikanta Das
-- MPC unanimously voted to leave the repo rate unchanged at 6.5 percent
-- Standing Deposit Facility rate also retained at 6.25 percent
-- Marginal Standing Facility rate, Bank Rate also retained at 6.75 percent
-- MPC also decided to remain focused on withdrawal of accommodationwith preparedness to act should situation so warrant
RBI MPC Meeting Live Updates: Governor Shaktikanta Das begins address
Happy to see Indian economy is continuing to grow at a reasonable pace.India’s strong fundamentals have laid the foundations of sustainable growth.India can become the new growth engine for the world.
RBI MPC Meeting Live Updates: Governor Shaktikanta Das begins address
The RBI Governor Shaktikanta Das has begun his announcement of the Monetary Policy Committee's rate decision
RBI MPC Meeting Live Updates: Every RBI governor has a pet interest rate theory
Typically, banks tend to be prompt in raising rates during a tightening phase but fail to display the same alacrity when interest rates are moving south ... Read More
RBI MPC Meeting Live Updates: How long RBI pauses would depend on how strong growth is (Pro)
While the outlook on inflation is uncertain, what will really move the needle for RBI is how strong the economy remains, writes Aparna Iyer.
-- A status quo outcome from the current policy meeting that concludes on August 10 is almost guaranteed
-- So far, high frequency economic data have strengthened the case for a strong GDP expansion this year
-- As the economy recovers, the trickle-down effect will come into play
-- Banks are seeing an improvement in their loans to micro, small and medium enterprises (MSME)
-- In agriculture, though El Nino remains a threat, the impact on monsoon and sowing seems to be limited. Read more here
RBI MPC Meeting Live Updates: Economists expect no changes
All 37 economists polled by Bloomberg predict the RBI's MPC will maintain the current repo rate of 6.50% on Thursday. RBI is expected to slightly increase the average inflation forecast to 5.40-5.50% from 5.1% in FY24.
RBI MPC Meeting Live Updates: Expectations - Lakshmi Iyer, CEO-Investment and Strategy, Kotak Investment Advisors
"The tone and texture taken by the MPC will be more relevant for markets. But looking at global macro, India's wait for a rate cut may just get longer and an extended period of status quo remains."
RBI MPC Meeting Live Updates: Expectations - V Swaminathan, Executive Chairman, Andromeda Sales
"The central bank will maintain the status quo and opt for hawkish stance in view of the recent rate hikes announced by the Federal Reserve and European Central Bank. Secondly, the retail inflation may not ease to the anticipated levels on account widespread rains and disruption in supply chain due flooding in different parts of the country. Taking into account these factors the best possible course for the central bank would be to go in for the status quo for the third time in a row."
RBI MPC Meeting Live Updates: Banking Central | A letter from humble Tomato to the RBI Governor
The RBI-led monetary policy committee is preparing for another round of rate-setting meeting this week. That comes in the backdrop of sharp jump in vegetable prices... Read More
RBI MPC Meeting Live Updates: Expectations - Aditi Nayar, Chief Economist, Head Research and Outreach, ICRA
"The surge in vegetable prices is likely to push the CPI or retail inflation above 6 per cent in July 2023. Moreover, the average for this quarter would exceed the latest estimate for the second quarter that the MPC released in June 2023. As a result, we expect the MPC's commentary to be fairly hawkish, amid a continued pause on the repo rate and stance in the upcoming policy review."
RBI MPC Meeting Live Updates: Expectations - Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank
"On the policy stance, since the liquidity conditions have turned favourable post the announcement of the withdrawal of the Rs 2,000 note, we expect the RBI to continue to hold on to the current stance of 'withdrawal of accommodation'". All eyes will be on how domestic inflation plays out and the global cues that are suggesting a greater probability of a peak out of the US Fed's monetary tightening cycle, thus easing."
RBI MPC Meeting Live Updates: Expectations - Madan Sabnavis, Chief Economist, Bank of Baroda
"We do expect the RBI to hold on to a status quo position on both rates and stance. The reason is that while inflation is presently running at less than 5 per cent there would be some upside risk to this number in the coming months with prices of vegetables and pulses going up sharply. Therefore, an extended pause is expected. With the RBI having a forecast of inflation of 5.4 per cent for the third quarter, it looks unlikely that the repo rate or stance may be changed till the beginning of the next calendar year."
RBI MPC Meeting Live Updates: RBI likely to maintain status quo
The RBI is likely to maintain status-quo on key interest rates for the third consecutive time today, feel experts. They said that since inflation is "within the comfort zone", action may not be taken.
Notably, the US Federal Reserve last week increased interest rate by 25 basis points to 5.25-5.5 percent, taking it to a multi-year high; while the European Central Bank also announced an increase of a quarter percentage point, bringing its main rate to 3.75 percent.
This is the third MPC meet this fiscal. Governor Das is set to announce the policy decision at 10 am.
