Monetary Policy Review

The fact that Consumer Price Inflation excluding vegetable prices is so high is a clear signal that the rate hikes haven’t succeeded in their objective 

RBI’s Policy Dilemma: The case for status quo 

With positive real rates and a falling inflation trajectory, it is safe to conclude that the stance of monetary policy too has more or less reached neutral territory 

Dear MPC, you can stand out, don’t follow US interest rates upwards

The falling off of inflation in India means that the Monetary Policy Committee should not raise interest rates any further

Chart of the Day | On RBI policy day, what does India’s financial conditions index tell us?

Financial conditions have tightened considerably for most emerging market economies. How long will it be before India follows suit?

If the recovery is strong, why not cut back stimulus?

If the macroeconomic situation today is far better than after the global financial crisis, as government economists point out, recall that the repo rate at the time was 4.75 per cent, compared to today’s 4 per cent

Chart of the Day | Why is RBI ignoring rising inflation expectations?

The rate setting panel fears that the surge in infections could swamp the recovery

An extraordinary divergence between consumer sentiment and business expectations

While the RBI’s consumer confidence survey is unrelievedly gloomy, its business surveys are far more upbeat 

Monetary Policy | A swift response to the COVID-19 second wave

To balance the conflicting trajectories of inflation (with an upside bias) and economic growth (with a downside bias), the RBI has relied on smart management of liquidity to keep the costs of borrowings low for both the government and the private sector 

Moneycontrol Pro Panorama | ​Shaktikanta Gsaps the Bond Market

In today’s edition of Moneycontrol Pro Panorama: Monetary policy decision, global economic outlook, asset prices and loose monetary policy, Nifty 20000 by September, Macrotech IPO, Federal Bank, Glenmark, Byju-Aakash and more

Monetary Policy Review | RBI tries to manage bond market expectations

The central bank announces support measures to keep yields down in the post-Budget review, but investors expect more

Did Shaktikanta Das just distance himself from RBI panel’s recommendation on corporate houses' entry into banking?

The Reserve Bank of India Governor Shaktikanta Dad said the internal working group's propsal that large corporate houses should be allowed to promote banka is not the RBI's official view

RBI cuts repo rate by 25 bps, changes stance to 'accommodative'; raises hopes for more cuts

The RBI Governor also said that the central bank will issue a new circular on non-performing assets (NPAs) or bad loans in the next two to three days.

HSBC, Nomura see another rate cut in April; 4 stocks on the radar

Most global brokerage firms see another rate cut by the central bank but at the same time suggested investors remain cautious as transmission of rates will be the key.

Opinion | The monetary policy review is a response to a complex environment

The monetary policy committee’s decision is a very sensible policy outcome given the constraints on policy authorities

Inflation is crashing, but a rate cut by RBI at its August policy meet not a given

RBI had begun the fiscal on a hawkish note in its April policy and then softened its tone in the June policy. But a rate cut at the upcoming policy meet on August 1-2, cannot be taken for granted.

RBI to keep rates unaltered in near term: D&B Economy Observer Index

Since the prices of goods and services are likely to be volatile as GST sets in, the base effect of the inflation numbers wanes out post-July 2017. We expect policy rates to remain unaltered in the near term

RBI lets benchmark lending rate stay unchanged at 6.25%

The Reserve Bank left its benchmark lending rate unchanged at 6.25%, on April 6, 2017, for the third policy review in a row, citing upside risk to inflation. It however increased the reverse repo &#82

Unchanged repo rate leaves home buyers unconvinced about banks being flush with funds

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 &#82

Time to go for short-term bond funds, avoid long-term gilt funds

Given the change of stance by Reserve Bank of India from accommodative to neutral, the yields have spike. As volatility is expected to persist for some time, it is better to invest in short term bond funds.

Bank of Maharashtra cuts lending rate by 0.2%

The bank has reduced marginal cost of funds based lending rate (MCLR) across various tenures effective today, Bank of Maharashtra said in a regulatory filing.

RBI governor Urjit Patel's maiden policy: Will he or won't he?

New RBI governor Urjit Patel will present his first monetary policy review on Tuesday. The jury is still out on whether the newly formed six-member monetary policy committee (MPC) will advise an interest rate cut. We take a look at the key factors that will likely guide the panel.

RBI likely to maintain status quo on Tuesday: Experts

With inflation rearing its head again and global crude oil prices inching up, the Reserve Bank is likely to maintain the status quo on interest rate at its bi-monthly monetary policy review on June 7 for the current fiscal, say experts

RBI policy meet likely to be a non-event: Religare

The RBI had cut the repo rate by 25 bps in its last monetary policy review on 5 April. Since then two key developments have taken place that warrant a cautious stance.

50 bps it is! Will the RBI pause now?: CRISIL

CRISIL has come out with monetary policy review. The RBI has set the CPI inflation target at ~5% by end 2016-17 and reiterated it at 4% by end 2017-18. Therefore, the pause from hereon could be a prolonged one unless there is a significant positive surprise on inflation. "50 bps it is! Will the RBI pause now?", says the report.

Room for rate cut in 2HFY16: India Ratings

RBI keeps door open for accommodative policy - Room for rate cut in 2HFY16, says India Ratings. WPI inflation has remained negative for the last eight consecutive months and stood firm at negative 2.4% in June. Although CPI inflation is lower than RBI‘s guided path target of 6% by January 2016, says the report.