RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

3:38 PM

Key highlights

 

RBI maintains status quo, keeps repo rate unchanged at 6 per cent; maintains neutral stance.

 

MSF, bank rate unchanged at 6.25 per cent

 

Real GVA growth aim stays at 6.7 per cent with risks evenly balanced

 

MPC committed to keep CPI close to 4 per cent on durable basis

3:32 PM

Monetary policy highlights:

 

— Q2 Growth was lower than projected in the October policy

 

— Recent increase in crude prices may have a negative impact on GVA growth

 

— Shortfalls in kharif production and rabi sowing pose downside risks to agri outlook

 

— There has been some pick-up in credit growth in recent months

3:27 PM

RBI's growth projections for FY18

 

— FY18 real GVA maintained at 6.7 per cent

 

— Q3 GVA seen at 7 per cent

 

— Q4 GVA seen at 7.8 per cent

3:25 PM

Highlights of Monetary Policy: 

 

— Upward trajectory in flation may continue in the near-term

 

— Impact of HRA by the central government is expected to peak in December

 

— Recent rise in international crude oil prices may sustain

 

— Q3, Q4 inflation estimated in 4.3-4.7 per cent range

3:19 PM

RBI Governor Urjit Patel: Governance reforms for all PSU Banks will also feature for all banks. PSU Bank recap bonds to be front-loaded for banks with better balancesheets.

3:18 PM

RBI Governor Urjit Patel: MPC considered upside pressure on food and living costs.

3:16 PM

RBI deputy governor: Will consider OMOs if liquidity is to be absorbed or injected on durable basis as RBI is still essentially absorbing liquidity.

3:15 PM

RBI deputy governor: Overhang of liquidity surplus in banking has come down and banking system is moving towards neutrality. Liquidity condition to be marginally surplus by year-end. Expect liquidity neutrality by first half of next FY.

3:12 PM

Working closely with Govt, recapitalization will be front-loaded for banks that have exercised prudence, governance reforms will also feature as part of the overall plan to ensure money is used to strengthen PSBs: Urjit Patel

3:12 PM

The next meeting of the MPC is scheduled on February 6 and 7, 2018.

3:11 PM

On the whole, inflation is estimated in the range 4.3-4.7 per cent in Q3 and Q4 of this year, including the HRA effect of up to 35 basis points, with risks evenly balanced.

3:11 PM

The projection of real GVA growth for 2017-18 of the October resolution at 6.7 per cent has been retained, with risks evenly balanced.

3:09 PM

Also Read: RBI keeps repo rate on hold at 6%, inflation forecast increased

3:08 PM

"RBI will continue to manage liquidity rate, will also consider open market consideration," said Viral V Acharya.

3:05 PM

RBI: Believe it is possible to link all bank accounts to Aadhaar by December-end

3:01 PM

RBI deputy governor: Looking to widen network of merchants by reducing merchant discount rate

3:01 PM

RBI deputy governor: Use of POS has significantly increased. It's time we give a further push to use of POS machines

2:59 PM

Recent rise in international crude oil prices may sustain

2:57 PM

RBI Governor: Governance reforms for all PSBs will also feature for all banks. PSU Bank recap bonds to be front-loaded for banks with better balance sheets.

2:56 PM

RBI deputy governor said, "Liquidity conditions continue to normalise."

2:54 PM

MPC took note of pressures from food and fuel prices; said committed to keeping headline inflation at 4 percent, says RBI governor. Farm loan waiver, partial roll back of duty on fuel, cut in GST rates on several items may result in fiscal slippage, RBI Governor Urjit Patel warned.

2:53 PM

At the Monetary Policy Committee meeting, Chetan Ghate, Pami Dua, Michael Debabrata Patra, Viral V Acharya and Urjit R Patel were in favour of keeping the repo rate unchanged while Ravindra H Dholakia voted for a policy rate reduction of 25 basis points.

2:52 PM

RBI says Gross Value Added powered by a sharp acceleration in industry activity, in Q2

2:52 PM

Urjit Patel: Survey shows improvement in overall eco situation in Jan-Mar

2:49 PM

Urjit Patel said, "rise in food, fuel prices may further harden expectations".

2:48 PM

5 out of 6 MPC members favoured no change in rates

2:46 PM

RBI: Going forward, the inflation path will be influenced by several factors. First, moderation in inflation excluding food and fuel observed in Q1 of 2017-18 has, by and large, reversed. There is a risk that this upward trajectory may continue in the near-term. Second, the impact of HRA by the Central Government is expected to peak in December. The staggered impact of HRA increases by various state governments may push up housing inflation further in 2018, with attendant second order effects. Third, the recent rise in international crude oil prices may sustain, especially on account of the OPEC’s decision to maintain production cuts through next year. In such a scenario, any adverse supply shock due to geo-political developments could push up prices even further.

2:45 PM

RBI:  The headline inflation outcomes have evolved broadly in line with projections

2:44 PM

The October bi-monthly statement projected inflation to rise and range between 4.2-4.6 per cent in the second half of this year, including the impact of increase in house rent allowance (HRA) by the Centre.

2:44 PM

CPI inflation excluding food and fuel, which increased from July to September, remained steady in October