The MPC faces a tough choice between staying the course and pausing a bit to take stock and then making the next move
The war in Ukraine and resultant spurts in energy and food costs, and supply disruptions caused by the pandemic are among main reasons cited, the people said, asking to stay unidentified as the correspondence is private.
While the latest data shows the Indian government is on track to meet the fiscal deficit target for the current financial year, questions have been raised about whether the medium-term target of 4.5 percent will be achieved
As part of its future course of action to tame inflation the MPC is expected to continue with its rate hikes, and take the terminal repo rate to around 6.5-6.75 percent levels
Gold prices have been under pressure this year because of the monetary tightening by central banks
The MPC won’t take any rate action at its November 3 meeting. The meeting will merely discuss the report to be sent to government explaining reasons why CPI could not be kept below 6 percent for nine months
The RBI MPC has announced that it will hold an off cycle meeting. CJ believes that the meeting won't be harmful for markets but Santo fears for the worst given inflationary headwinds. Catch the duo debate over what could be the outcome of the surprise meeting plus their top brokerage bets and newsmakers of the day.
The Reserve Bank of India's monetary policy committee has raised its key repo rate by 190 basis points since the start of its tightening cycle in May, with net impact of all steps taken resulting in a close to 250 basis points increase, Varma said.
Varma's comments assume significance in the context of an ongoing debate on whether raising rates too quickly will hurt growth.
CPI inflation came at 7.41% in September. With this, the MPC has formally failed to meet the inflation mandate, a scenario former RBI Governor D Subbarao had warned early this year.
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Indranil Pal does not expect liquidity to be a major concern going ahead, and feels that if any corporate has expansion plans in the next few months, it may be better to tie up domestic funding sources as external borrowings may not be an option at the moment. Global interest rates are on the rise and the Rupee depreciation will also weigh on external borrowing costs.
The MPC typically meets six times in a year to decide on interest rates
Currently, only the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act provides a framework for such securitisations by asset reconstruction companies (ARCs).
Surplus liquidity in the banking system has moderated to Rs 2.3 lakh crore during August-September, from Rs 3.8 lakh crore during June-July.
RBI Monetary Policy LIVE: Governor Shaktikanta Das announces the decisions of the rate-setting panel after a 3-day meeting. All eyes on the key policy rate announcement, which is likely to be hiked for the fourth time in a row. The RBI is likely to take a cue from its global counterparts to try and tame rising inflation. Watch!
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This week’s expected repo rate hike will be the fourth in a row since May. At 5.90 percent, the repo rate would be the highest since April 2019
It is important for the central bank to fight inflation in a timely and consistent manner. Not only that, it has to be seen doing that
A large hike in the policy rate, will lead to a further exacerbation of the economic growth, and unemployment in India
The RBI has always averred that it sets rates purely based on domestic factors and is not influenced by external factors. I would argue that the Fed’s new dot plot is also an input into India’s inflation targeting MPC
Writing in a paper, the external member of the Reserve Bank of India's rate-setting panel said the inflation measure has to be reliable, which requires frequent updates to the Consumer Price Index basket
The MPC is unlikely to match the aggressive US Fed rate hikes given that persisting inflation in India is still largely food driven
Ashima Goyal further said appropriate countercyclical macroeconomic policy with continuing supply-side improvements has enabled a growth recovery that is among the best in the world.