The Reserve Bank of India (RBI) announced its first bi-monthly monetary policy for the current financial year on Wednesday. The Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, began its three-day deliberations on Monday, weighing critical factors such as the repo rate, liquidity conditions, CPI inflation, and the GDP growth outlook. Adding to the uncertainty, US President Donald Trump last week triggered global concerns by announcing sweeping ‘reciprocal tariffs’ on nearly all imports from over 180 countries. These hefty 27% tariffs, coming into effect on the same day as the RBI’s policy announcement, have heightened fears of a full-blown trade war and a potential global recession.
The Reserve Bank of India is likely to keep rates unchanged at its policy meeting on Friday. It is going to be a tightrope walk for the central bank with GDP figures having sprung a negative surprise in the second quarter. In the wake of slowing growth, there is a growing chorus for a rate cut to support growth. Even if a repo rate cut doesn’t come by, there may be chances of a CRR cut. The central bank’s focus is expected to stay on balancing growth and inflation, prompting questions about whether it might revise its growth forecast amid ongoing economic pressures. Catch this chat between Nandita Khemka and CNBC-TV18’s Latha Venkatesh to know what one can expect from Governor Shaktikanta Das this time around.
The Reserve Bank of India Governor Shaktikanta Das to announce the third bi-monthly monetary policy for the 2023-2024 financial year. RBI is expected to keep the repo rate unchanged at 6.5% till owing to the inflation fears. In June policy, RBI Governor kept the repo rates unchanged. In April meet too, the repo rates were unchanged. Watch the announcements on repo rates, inflation and growth forecasts.
After six successive hikes, the Reserve Bank of India’s decision on June 8, 2023, to keep the repo rate of 6.50 percent unchanged. While this was music to the ears of home buyers and those paying EMIs, the question here arises — how long do home buyers need to wait to see a fall in their loan amount or EMI burden? Watch this video to find out!
The decision, announced at the same time the RBI kept the repo rate unchanged at 6.00 percent, is meant to spur banks into lending more, but it would mean increased supply at a time of ample liquidity.
Equity benchmarks reversed gains in last hour of trade with the Sensex falling 228 points intraday Wednesday as the Reserve Bank defied expectations of rate cut by keeping repo rate unchanged and lowered GVA estimates. However, the fall was arrested after the RBI decided to withdraw incremental CRR from December 10.
Equity benchmarks fell sharply after the RBI kept all policy rates unchanged, which was completed unexpected by the street.
Systemic liquidity has been improving significantly in recent times and there is every reason to hold that the process of moving to a structurally positive liquidity situation is going ahead as planned by RBI.
It looked like another resilient session for the market, which was coming up in the morning because we slipped with the global cues and then recovered almost immediately to about 5500.