RBI Governor Sanjay Malhotra will announce the October MPC outcome on October 1. Economists expect a pause at 5.5%, though inflation forecasts may be revised.
Benign inflation and sluggish credit raise chances of a cut, though the base case remains an extended pause
While majority of the analysts expect RBI to keep rates steady this time, after a massive 50 basis points rate cut during the previous meeting, some predict a 25-bps cut amid sharp drop in inflation numbers.
RBI MPC Meeting Highlights: GDP growth projection unchanged at 6.5% for FY26. CPI inflation projections reduced to 3.1%.
RBI MPC meet: The stress witnessed earlier in retail segments like unsecured personal loans and credit card receivables portfolio has abated, while the stress in micro-finance segment is persisting, says Governor Sanjay Malhotra
RBI MPC Meet: India’s annual retail inflation had eased to 3.16% in April from 3.34% in March.
Market experts are unhappy that the RBI did not announce any further “liquidity easing measures” as part of the policy announcements today
This comes after the Reserve Bank of India's MPC cut the central bank's repo rate by 25 basis points to 6.25 percent. The rate cut marks the first cut since May 2020. However, the RBI maintained its 'Neutral' stance.
The RBI reduced the Cash Reserve Ratio (CRR) by 0.5% (50 basis points) to 4%.
In October, India's retail inflation surged to a 14-month high of 6.21 percent year-on-year (YoY).
The MPC projects CPI inflation for FY 2024-25 at 4.5%, with quarterly estimates of 4.1% for Q2, 4.8% for Q3, and 4.2% for Q4.
RBI MPC meeting: A prolonged rate pause and liquidity withdrawal, with a rate cut only in the second half of FY 25 — experts, bankers and economists share their thoughts
Inflation projection lowered a tad, other projections remain same
RBI MPC meet has kept the repo rate unchanged for now but with inflation still on a close watch, experts say there isn’t a clear signal that interest rates will start to fall anytime soon
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The central banker estimated growth for the second quarter of FY23 at 6.3 percent (versus 6.2 per cent earlier)
RBI Monetary Policy Highlights: The central bank raised the repo rate to above pre-pandemic level and the MPC is focused on withdrawal of accommodation.
RBI has raised the repo rate by 50 basis points, an increase for the second time in five weeks at the conclusion of the monetary poly committee’s three-day meeting on June 8. Here’s what Shaktikanta Das said during the policy press briefing.
The latest hike comes after the Reserve Bank announced a 40 bps increase in repo rate in an off-cycle policy move in May.
The central bank forecasts 6.7 percent inflation, while the real GDP growth rate is pegged at 7.2 percent
RBI Governor Shaktikanta Das will unveil the first monetary policy of the new financial year on April 8, after a two-day review. This will likely indicate the course RBI will adopt for the remainder of FY23 as it seeks to strike a fine balance between spurring growth and curbing inflation. So will RBI continue to keep rates low to bolster growth or go for a rise? Watch Karunya Rao and Ravi Krishnan decode the central bank's strategy
Most experts reckon that the central bank will refrain from tinkering with interest rates amid concern that its focus on boosting economic growth will put it behind the curve in tackling inflation.
RBI left key rates unchanged in its Monetary Policy on February 10, 2022. The Central Bank maintained CPI inflation forecast of 5.3% for FY22, and FY23 GDP forecast at 7.8%. What does this mean for the economy? Latha Venkatesh gets an insight into the policy fine print.
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RBI Monetary Policy: The RBI retained the repo rate, at which it lends short-term funds to banks, at 4 percent. The reverse repo rate stands at 3.35 percent.