RBI Monetary Policy Committee is responsible for fixing the benchmark interest rate in India. The panel meets multiple times in a year and announces its decisions. More
There is a strong signal in the MPC minutes that growth revival may take much longer than expected and MPC’s main focus will be growth revival, rather than inflation targeting
Moneycontrol takes a look at the work and fields of research of Ashima Goyal, Shashanka Bhide and Jayanth Verma
With regards to the members of MPC, the RBI Act states that a person cannot be in the panel if they have a material conflict of interest with the RBI and are unable to resolve such conflict.
The Reserve Bank of India has notified that the upcoming meeting of the MPC, scheduled to start from September 29, has been postponed
We are more confident that yields will remain contained on the shorter end, given abundant liquidity and our view of the continuation of abundant liquidity.
The central bank has also asked payment providers to offer an online dispute resolution mechanism to address consumer grievances.
As per the RBI Act 1934, the MPC is required to meet at least four times in a year.
The Monetary Policy Committee (MPC), headed by RBI Governor, is scheduled to meet for three days beginning August 4 and will announce its decision on August 6.
Having cut its key lending rate by an aggressive 115 basis points (bps) in 2020, on top of 135 bps cuts in 2019, the RBI so far has had little success in spurring credit growth amid varying degrees of lockdowns across India.
The Supreme Court has said the relatively short tenure of RBI Governors fixed by the central government undermines their independence
Moneycontrol's Shraddha Sharma talks to Ravi Krishnan about what to expect from RBI’s three-day review amid concerns of fiscal deficit and inflation.
In its fourth bi-monthly meeting for 2019-20 on October 4, the Reserve Bank of India's Monetary Policy Committee (MPC) slashed the repo rate by another 25 bps.
The MPC has so far delivered four rate cuts in 2019, reducing the repo rate by 110 percent
MPC strongly signaled the opening of space for deeper and continuing easing by unanimously voting to both cut the repo rate and change the policy stance.
"Real estate, NBFC, Banking, and Auto sectors would be the key beneficiaries of this rate cut where a temporary uptick can be seen in many stocks but quality stocks will continue to outperform," said Amit Gupta, Co-Founder and CEO at TradingBells.
The political uncertainty being out of the way, focus now turns to monetary measures. CPI inflation in India is still below the targeted range. Growth concerns continue to linger on, says Lakshmi Iyer of Kotak Mahindra AMC
The monetary policy committee has reduced the key policy rate by 25 basis points to 6 percent in order to boost private investments and support domestic growth
The next meeting of the MPC, from April 2 to April 4, will be held in the backdrop of benign inflation and slowing industrial growth.
The slowdown in global growth suggests that monetary policy will remain reasonably accommodative for far longer than initially expected.
RBI Governor Shaktikanta Das promises to cut repo rate if inflation is below 4 percent.
The headline inflation is lingering below central bank’s projections, crude oil prices are stable, domestic growth momentum is slowing and global rate cycle is peaking out which gives enough room to the MPC to change its stance and possibly go for a rate cut.
The monetary policy committee have acted on financial stability concerns rather than confining its actions to the more narrow concerns about its explicit inflation targeting mandate.
Sectors like consumption, consumer durables, banking, and real estate will be impacted the most from the rate hike as the cost of the products will be directly influenced due to increase in interest rate.
As the RBI's Monetary Policy Committee's mandate is to target inflation, there is a possibility that we may be seeing another rate hike -- the third in a row.
On March 21, the central bank had announced the schedule of the bi-monthly MPC meetings for the entire fiscal year 2018-19.