The Monetary Policy Committee kept the repo rate unchanged at 6.5 percent in April, after raising it by 250 basis points since May 2022
Given the fast moderation in inflation, the RBI should continue with a pause in the repo rate and also change its stance to neutral, the CII President explained
Spreads have narrowed further as the market's terminal rate expectations might have changed with the RBI keeping the policy rate unchanged and inflation easing, say fund managers
The MCLR-based lending rate for loan across different tenures now range between 8.35 percent to 9.35 percent.
Inflation expectations are keenly eyed by policymakers as anchoring them is critical to ensuring price stability
We have done with our growth and asset quality. There is no worry on that front for three, four years, and completely from the current year, the focus will be on profitability. And you can see in the last two quarters there is a reduction in the operational expenditure, says Bhutada.
Acuite Ratings expects the central bank to maintain a prolonged pause and gradually scale back liquidity surplus to push monetary policy transmission
Jaydeep Iyer believes that the central bank’s decision to keep the repo rate unchanged at 6.5 percent provides relief to home loan borrowers. He expects the RBI will keep interest rate hikes on hold for the fiscal year.
Markets will always try to second-guess policymakers. So it is no surprise the Monetary Policy Committee's decision to leave the repo rate unchanged at 6.5 percent on April 6 is being seen as the end of the rate hike cycle, even though Reserve Bank of India Governor Shaktikanta Das stressed it should not be interpreted as such
The move will provide some respite to affordable and mid-income housing segments and support the current home-buying sentiment, said real estate experts.
The decision to kept rates unchanged was unanimous. The Governor also highlighted that the MPC will be ready to act should the situation so warrant.
Yield on benchmark bond went as low as 7.1469 percent during announcement of monetary policy review.
The central bank has hiked the repo rate by 250 basis points since May last year to contain inflationary pressure.
A pause on interest rates by the RBI may be very much around the corner, but corporates and households will most likely have to deal with the pain of high interest rates for a while.
Out of the six members of the Monetary Policy Committee, two have voted against a repo rate hike in a couple of instances.
He said that India is estimated to grow at 6.2 per cent as slowdown in global demand will take a toll on domestic growth. He also flagged that a deeper slowdown in US could hit India's growth prospects.
India's central bank considers various economic indicators before deciding the interest rate. How have some of these data points moved since the Monetary Policy Committee last met?
The Reserve Bank of India's rate-setting panel is set to announce its interest rate decision on April 6. And whatever it decides, it would set the tone for the next several meetings
Inflation expectations are keenly eyed by policymakers as anchoring them is critical to ensuring price stability
Another hike in the repo rate would lead to even higher borrowing costs for developers, CREDAI said, ultimately leading to steeper project costs and housing prices.
The RBI has raised the key interest rates by 250 basis points in the current fiscal. Experts forecast another 25 basis points hike in the April policy as retail inflation crept up to 6.52 percent in January breaching the upper end of the RBI's tolerance band.
The analysts see a low-growth, high-inflation scenario ahead
The gains from the shift of international companies away from China is benefiting India a bit but not to the extent envisaged earlier
Real estate companies have month after month posted strong growth in bookings despite rise in repo rates. It will be interesting to see if the latest rate hike will derail that trend.
Retail inflation has been cooling now for two months as it printed below the RBI's upper end of tolerance band for November and December. It is expected to moderate further in January.