Rbi Review

CUB may underperform in the coming months despite a good recovery seen by the bank after pandemic

Note ban a short term disruptor but game changing move: D Parekh

Parekh is now betting on Union Budget to revive the consumption story. He said that these are difficult times and expects the Finance Ministry to introduce sops for industry as well for the individuals.

COLUMN: RBI move prudent, transmission of old rate cuts key, says Nomura

The RBI left the cash reserve ratio unchanged at 4 percent, as expected, and announced that the incremental CRR of 100 percent will stand withdrawn from 10 December. The increase in the market stabilisation securities ceiling to INR6trn has boosted the RBI‘s firepower to absorb liquidity.

Demonetisation to impact activities in cash-intensive sectors

The withdrawal of old Rs 500 and 1,000 notes "could result in a possible temporary reduction in inflation of the order of 10-15 basis points in Q3 (October-December period", the central bank said in the Fifth Bi-monthly Monetary Policy Statement Resolution of the Monetary Policy Committee (MPC).

Experts View on RBI's policy rate unchanged

The Reserve Bank of India (RBI) unexpectedly kept its policy repo rate unchanged at 6.25 percent on Wednesday, despite calls for action as an intense cash shortage threatens to slam the brakes on the world's fastest growing major economy.

Car, consumer durable makers rejoice on RBI's 'festive gift'

In a move that is expected to lead to lower rates for housing EMIs, car loans and corporate borrowing, the Reserve Bank reduced the short term lending rate (repo rate) by 0.25 percent to 6-year low of 6.25 percent in the fourth bi-monthly monetary policy statement.

Inflation targeting govt's priority, RBI shares same view:Lavasa

Post the monetary policy meet today, Ashok Lavasa told CNBC-TV18 that inflation should remain in control in the coming days and expects banks to pass on the rate cut to its borrowers.

RBI Monetary Policy: Will bank & auto stocks benefit from rate cut?

Bankex gained around 0.4 percent with SBI gaining 2 percent while ICICI Bank was up 1 percent from previous close on expectations that to rate cut may lead to lower rates for housing EMIs, car loans and corporate borrowing.

RBI Monetary Policy: Cost of funds needs to fall for banks to cut rates, says Maruti

Post the monetary policy meet, Keki Mistry, VC and CEO of HDFC told CNBC-TV18 that the inflation expectations gave RBI impetus to cut rates.

Monetary Policy: Rate cut to boost liquidity, achieve near 8% growth, says FinMin

Finance Secretary Ashok Lavasa said RBI and the government are on the same page with regard to inflation target and the government is taking all measures possible to keep inflation within the range of 2-6 percent.

Monetary Policy: RBI nudges banks to pass on lower rate benefits to consumers

The Reserve Bank reduced the short term lending rate (repo rate) by 0.25 percent to 6-year low of 6.25 percent in the fourth bi-monthly monetary policy statement.

Monetary Policy: RBI optimistic on inflation, warns of risks to growth next year

Despite this warning, the RBI has pegged the GVA growth of 7.6 percent for the current fiscal and 7.9 percent the year after.

Expert views on RBI's monetary policy

"While the RBI has cut the repo rate by 25 basis points, the policy statement remains less dovish in its guidance. It still sees upside risk to inflation target that has to be achieved by March end. While today's rate cut would accentuate the bond rally, I don't see much impact on the bank lending rates."

RBI Policy: Tone less dovish as inflation worries continue, says expert

“While the language is cautious, trajectory of CPI will determine further rate cuts,” Anant Narayan, Head - Financial Markets, Standard Chartered Bank says adding that going to 4 percent inflation by March 2018 is looking difficult as of now.

'Inflation unlikely to be drastic enough to warrant a rate cut'

The RBI retained its inflation projections (i.e. of a central trajectory towards 5 percent by March 2017) and suggested that the room for rate cuts could still arise in the future - if progress in the monsoon continues to be steady and food prices ease as expected.

CARE Ratings expects a 25-bps rate cut in December quarter

In a report on Tuesday, CARE Ratings said it expects a 25 basis points rate cut in the October-December quarter, adding that GDP forecast of 7.8 percent for FY17 and Consumer Price Index inflation of 5-5.5 percent by end of March 2017 also hold.

Lot of scope for rate cuts in coming months: India Inc

PHD Chamber of Commerce President Mahesh Gupta said "there is a lot of scope to reduce the repo rate as good monsoon is visible and inflationary expectations are benign".

Status quo on rate good, inflation risks weigh on upside: Ind-Ra

However, on the negative side RBI noted that (i) retail inflation in the month of June was at a 22nd month high, mainly driven by food items, (ii) Brexit - has increased the volatility in global financial markets worldwide, resulting in investors looking for safe havens.

RBI to inject Rs 10,000 cr for liquidity crunch on FCNR payout

"To emphasise this point, we announced an Open Market Purchase today. The RBI will proceed in a calibrated way towards the goal of eliminating the structural deficit. When we have done so, episodes of systemic surplus and systemic deficit should be evenly balanced," he said.

Raghuram Rajan optimistic about meeting inflation target of 5%

Rajan, who demits office on September 4 after completion of 3-year tenure, also said that today's was likely the last of the Governor-led monetary policy reviews, as the future ones will be carried out by the six-member panel.

RBI policy accommodative, liquidity deficit reduction focus

The underlying theme of the RBI's policy statement was continuity, with no change in the policy rate, inflation or growth targets. Moreover, the monetary policy stance remains accommodative and the liquidity strategy continues to aim to reduce the liquidity deficit.

Experts see room for rate cuts in 2nd half of FY'17

Reserve Bank's decision to leave policy interest rates unchanged today was no surprise to market participants, in line with transparent and predictable monetary policy, Moody's Investors Service said in a statement.

Bonds up on RBI plan to boost liquidity through open market buys

The benchmark 10-year bond yield fell as much as 6 basis points to its lowest in nearly seven years at 7.11 percent, while the present benchmark bond 2026 yield hit its life-low.

RBI retains growth projection at 7.6%, warns of global impact

In its 3rd bi-monthly monetary policy review, RBI said the momentum of growth is "expected to be quickened" by the normal monsoon raising agricultural growth and rural demand, as well as by the stimulus to consumption spending that can be expected from the 7th Central Pay Commission's award.

See uptick in inflation risks; another rate cut far: Economists

Decoding Raghuram Rajan‘s commentary, Deutsche Bank Chief Economist (Asia, Global Markets Research) Taimur Baig said room for another rate cut is zero as there is an upside in inflation outlook.