RBI Monetary policy highlights: Inflation outlook uncertain, says RBI guv

RBI Monetary policy: RBI today decided to keep rates unchanged today amid rising inflation, lockdowns and Covid surge. Stay tuned for all the LIVE updates

12:50 PM

Deputy Governor Patra comments on RBI’s message to the markets on G-SAP

Irrespective of what the RBI wants, we will give you Rs 1 trillion; that;s our message to the markets

By influencing G-Sec rates, we can ensure congenial financing conditions

In the OMO setting, the market is usually guessing, as opposed to G-SAP where there is an explicit commitment

12:36 PM

RBI Monetary policy LIVE: Inflation outlook uncertain, says RBI Guv Das

Have mentioned in our statement that 4% inflation target is well entrenched

 

Tolerance band allows room to the RBI to act in extraordinary circumstances

 

12:34 PM

At the current juncture, we have said that growth is of paramount importance: RBI Governor

At the current juncture, we have said that growth is of paramount importance, while keeping in mind inflation targetting: Shaktikanta Das

12:33 PM

RBI Monetary policy LIVE: Inflation outlook uncertain, says RBI Guv Das

RBI Monetary policy LIVE: Inflation outlook uncertain, says RBI Guv Das

12:29 PM

RBI comitting its balance sheet to the conduct of monetary policy for the first time: RBI Dy Guv Michael Patra

Giving an amount allows participants to plan their engagement with the borrowing programme.

It is a challenging instrument; but it is a risk RBI has taken given its commitment to liquidity management

12:26 PM

G-SAP is different from usual open market operations. We have given it a distinct character: Shaktikanta Das

"For the first time we are giving a quantum for bond purchase in the secondary market.

 

Within the quarter, we will be announcing secondary market auctions from time to time"

12:20 PM

RBI Monetary Policy LIVE: RBI Dy Guv Michael Patra: GSAP will run alongside our normal liquidity operations

RBI Monetary Policy LIVE: RBI Dy Guv Michael Patra: GSAP will run alongside our normal liquidity operations

12:18 PM

RBI Governor Shaktikanta Das speaks to the media on the MPC decision and new measures announced

12:15 PM

Our signals, actions and communication ust be read together, says Guv on RBI Policy

Our signals, actions and communication  ust be read together, says Guv on RBI Policy

12:14 PM

Addressing overall liquidity situation in market to ensure orderly evolution of yield curve, says RBI Guv

Addressing overall liquidity situation in market to ensure orderly evolution of yield curve, says RBI Guv

12:10 PM

RBI Guv: G-Sec acqn programme is in addition to normal instruments in our toolkit for liquidity management

The Reserve Bank of India (RBI) today announced a secondary market government security acquisition programme (GSAP 1.0) wherein the central bank will purchase government bonds worth Rs1 trillion from the secondary market in the first quarter of this fiscal. The first purchase of Rs25,000 crore will take place on 15 April.

 

“While laying out the liquidity management strategy for 2021-22, let me unequivocally state that the Reserve Bank’s endeavour is to ensure orderly evolution of the yield curve, governed by fundamentals as distinct from any specific level thereof. Our objective is to eschew volatility in the G-sec market in view of its central role in the pricing of other financial market instruments across the term structure and issuers, both in the public and private sectors," RBI governor Das said on Wednesday while announcing the monetary policy statement first by-monthly monetary policy statement of fiscal 2021-22.

12:07 PM

Sandeep Bagla, CEO, TRUST Mutual Fund on RBI Policy

"Interest rates are likely to remain range bound going forward as RBI is committed to ensure easy liquidity and low repo rates. The increase in Government borrowings are likely to be partially offset by RBI OMOs and secondary market purchases of Government securities. Inclusion of government securities global bond indices will add to the demand. Corporate bond spreads are likely to remain at moderate levels on back of restrained supply and continued demand from institutional investors. Unless inflation expectations start increasing in the future, fixed income investors will do well to remain invested in Indian bonds."

12:06 PM

RBI Monetary Policy LIVE: Shaktikanta Das addresses media

RBI Monetary Policy LIVE: Shaktikanta Das addresses media

11:30 AM

RBI MPC LIVE: Governor Shaktikanta Das to address media at 12 pm

Governor Shaktikanta Das to address media at 12 pm

11:29 AM

RBI commits to OMO calendar, leaves key policy rates and stance unchanged

The Reserve Bank of India (RBI) on Wednesday fulfilled a long-standing demand of bond market participants of having an open market operations (OMO) calendar of sorts, through which the central bank would commit its periodic support to the market.

 

As expected, the six-member monetary policy committee kept the policy repo rate and stance unchanged at 4 per cent, and ‘accommodative’, “for as long as necessary”, respectively.

 

Despite the surge in Covid-19 infections, the growth target also remained unchanged at 10.5 per cent for the fiscal, but inflation was tweaked upwards slightly. The CPI inflation is expected to be 5 per cent for Q4FY21, 5.2 per cent in Q1FY22, 5.2 per cent in Q2FY22, 4.4 per cent in Q3FY22 and 5.1 per cent in Q4FY22 with risks broadly balanced. Read on...

11:26 AM

G-SAP, TLTRO extension: Key takeaways from RBI's April monetary policy

Given the rise in the spread of the coronavirus (Covid-19) infection and imposition of fresh localised lockdowns, the Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) on Wednesday decided to leave the key repo-rate unchanged at 4 per cent. It also maintained the policy stance as ‘accommodative’ to keep the liquidity taps running in the economy.
 

“The recent surge in infections, however, imparts greater uncertainty to the outlook,” RBI governor Shaktikanta Das said today, setting the stage for the financial year of 2021-22 (FY22). April policy was the first bi-monthly MPC meeting of the new fiscal year. “Localised and regional lockdowns could dampen the recent improvement in demand conditions and delay the return of normalcy,” he said. Read on...

11:18 AM

RBI has been pragmatic on growth; ring-fenced the liquidity issue

The Monetary Policy Committee (MPC) decision on rates was quite expected and hence the status quo was not a surprise for the market. The same holds for the accommodative stance, which means that growth will remain the main objective, as the MPC has stated that this stance will hold until growth prospects stabilise.

 

The focus was to be more on the language of the RBI on growth and inflation. Here, the RBI has been pragmatic on growth with a forecast of 10.5 per cent for fiscal 2021-22 (FY22), which is quite timely. Read on...

11:16 AM

Expert Views: RBI holds rates at record lows amid concerns over rising Covid-19 cases

COMMENTARY

 

KUNAL KUNDU, INDIA ECONOMIST, SOCIETE GENERALE, BENGALURU

 

"As expected by us and the market, the RBI kept the policy rate (the repo rate) unchanged at 4% while keeping the stance as accommodative. This too is in line with our expectation despite the surging inflation since the massive second wave of infection has induced ample uncertainty about the recovery momentum."

 

"While nobody is expecting a reversal of the momentum, there is already tell-tale evidence of stalling momentum. As we have been reiterating, various high-frequency data for February does suggest loss of momentum and this has seemingly extending to March."

 

"More importantly, with domestic consumption being much more muted compared with the levels of activity, worries do persist even though RBI retained its FY21-22 real GDP growth expectation at 10.5%. This, we believe, will eventually be revised down by 2H21."

 

RUPA REGE NITSURE, GROUP CHIEF ECONOMIST, L&T FINANCIAL HOLDINGS, MUMBAI

 

"Today's policy is in line with the expectations. The RBI's assurance on the secondary market gilt purchase programme in FY22 will help in the management of the yield curve. However, the MPC's projections of the GDP and CPI trajectories do not reflect the uncertainties created by the second wave of COVID-19 infections and the use of blunt measures like lockdowns in many states."

 

10:43 AM

CPI Inflation likely to be subject to both upside and downside pressures: RBI Governor Shaktikanta Das

RBI Governor Shaktikanta Das said that Consumer Price Index (CPI) inflation trajectory is likely to be subject to both upside and downside pressures. Food inflation will depend on progress of the south-west monsoon and taxes on petroleum products, the RBI governor said.

10:37 AM

RBI to ensure orderly conduct of government borrowing; preserve financial stability: RBI Governor

RBI to ensure orderly conduct of government borrowing; preserve financial stability: RBI Governor

 

10:34 AM

Under ECB framework, limit for parking of unused ECB proceeds in India extended

Under ECB framework, limit for parking of unused ECB proceeds in India extended, says Shaktikanta Das

10:34 AM

RBI MPC LIVE: Cash withdrawal by full-KYC PPIs issued by non-bank users allowed

RBI MPC LIVE: Cash withdrawal by full-KYC PPIs issued by non-bank users allowed

10:34 AM

RBI MPC LIVE: Aggregate ways and means advance limits for states increased

RBI will enhance ways and means advance (WMA) limit to Rs 47,010 crore, up to 46 per cent from current limit of Rs 32,255 crore.

10:32 AM

RBI Monetary Policy LIVE: Interoperability among full-KYC PPIs made mandatory, says Shaktikanta Das

Current outstanding limit on these prepaid instruments doubled to Rs 2 lakh

 

10:32 AM

RBI Monetary Policy LIVE: Centralised payment systems like NEFT and RGTS to be extended beyond banks

Centralised payment systems like NEFT and RGTS to be extended beyond banks to prepaid payments, card networks, white-label ATM companies, etc

 

10:31 AM

RBI MPC LIVE: Financial inclusion index based on various parameters to be published in July every year

RBI MPC LIVE: Financial inclusion index based on various parameters to be published in July every year

10:29 AM

RBI MPC LIVE: Loan limit under priority sector lending to agri sector increased from Rs 50 lakh to Rs 60 lakh

RBI MPC LIVE: Loan limit under priority sector lending to agri sector increased from Rs 50 lakh to Rs 60 lakh

10:28 AM

Bank lending to registered NBFCs other than MFIs under priority lending extended

Bank lending to registered NBFCs other than MFIs under priority lending extended

 

10:28 AM

RBI Monetary Policy LIVE: A body to be set up to review the functioning of ARCs and recommend measures

RBI Monetary Policy LIVE: A body to be set up to review the functioning of ARCs and recommend measures.

10:27 AM

RBI Monetary Policy LIVE: Maximum end of the day balance limit being doubled to Rs 2 lakh

RBI Monetary Policy LIVE: Maximum end of the day balance limit being doubled to Rs 2 lakh