RBI MPC LIVE updates: Roughly 50% of Rs 2000 notes have come back, says Das

RBI MPC Policy LIVE: Catch live updates from RBI's monetary policy announcement here

2:38 PM

Inflation may inch down in May-June, indicates Monetary Policy Committee

Retail price inflation may inch down slightly in May and June or remain flat in one of the months compared to 4.7 per cent in April, if projections of the Monetary Policy Committee (MPC) prove to be true. The MPC, which met for three days ended Thursday, pegged the Consumer Price Index (CPI)-based inflation rate at 4.6 per cent for the first quarter of the current financial year against 5.1 per cent, forecast in the April policy. Read more...

 

 

 

2:21 PM

Real estate experts say RBI decision can improve housing demand

Shishir Baijal, chairman and managing director at Knight Frank India, said, "We believe that this status quo will facilitate positive decision-making for home buyers...the trajectory of India's economic growth will be beneficial. Despite a significant increase in interest rates, the sector has been performing well. Real estate loan demand from both housing and commercial segments has remained strong, despite a 150 bps rise in the base lending rate (MCLR) over the past year. However, we remain cautious about the industry, as the complete transmission of the repo rate hikes to lending rates is yet to be observed." Read more...

2:10 PM

Long wait for rate cut cycle as inflation remains higher than the 4 per cent target: Vikas Garg

Vikas Garg, head of fixed income at Invesco Mutual Fund, said, "Overall, a pause was expected with a lesser likelihood of further rate hikes. Nonetheless, a long wait for the rate cut cycle as inflation remains higher than the 4 per cent target."

 

2:03 PM

Projected growth rate for Q1 at 8% in FY24 is likely to get tested: Ranen Banerjee

"The MPC expectedly continued with the rate pause as the inflation prints have come well within the tolerance band of 2 to 6 per cent and growth concerns persist. The stance has been kept as a withdrawal of accommodation as that is the signalling the RBI wants for keeping the inflationary expectations anchored. The FY24 growth rate projection of 6.5 per cent is more on the optimistic spectrum band as the number of downside risks listed are quite many. The projected growth rate for Q1 at 8 per cent in FY24 is likely to get tested despite the holding up of demand in the first two months of the year", Ranen Banerjee, partner of economic advisory services at PwC India, said. Read more expert views here

1:41 PM

We expect RBI to maintain status quo on rates this fiscal, initiate cuts in 2024: Chief Economist at CRISIL

"The central bank remains vigilant of global volatility. Even as central banks in major advanced economies have reduced the pace of rate hikes, inflation rules above their target and faces upside risks from tight labour market conditions. We expect RBI to maintain status quo on rates this fiscal and initiate cuts in the January-March quarter of 2024", says Dharmakirti Joshi, Chief Economist at CRISIL.

 

1:35 PM

We expect pause on policy rates through CY2023 while modulating system liquidity: Achala Jethmalani

"In a no surprise move, monetary policy maintained a status-quo on policy rates and stance. It remains in a 'wait and watch' mode and vigilant on inflation trajectory. We expect a pause on policy rates through CY2023 while modulating system liquidity. The window for policy pivot to rate cuts could open-up in the first half of CY24, if inflation trajectory warrants given that growth remains robust." says Achala Jethmalani, Economist, RBL Bank

1:25 PM

Amid volatile global economic scenario it is prudent that RBI followed a wait-and-watch strategy: Rajani Sinha

"While the RBI decided to keep the policy rates unchanged for the second consecutive meeting, it has continued to emphasize on bringing the retail inflation closer to the target of 4 per cent. Amid a volatile global economic scenario and lingering risks to domestic inflation, it is prudent that the RBI has followed a wait-and-watch strategy. While RBI has marginally lowered the CPI inflation projection for FY24 to 5.1 per cent, it has emphasized on the inflationary risks. The policy stance on ‘withdrawal of accommodation’ is reflective of RBI’s guarded approach towards inflation as it reiterated that inflation remains above target and remaining within the tolerance band is not enough. Going ahead, with the domestic growth holding up well, we have raised our GDP growth projection to 6.5 per cent for FY24 (from previous projection of 6.1 per cent). With concerns on growth front abating and CPI inflation likely to remain above the 4 per cent target, we expect a status quo on the policy rates in 2023", says Rajani Sinha, Chief Economist, CareEdge Ratings.

12:48 PM

We would like to see sustained momentum toward the alignment of inflation with the headline target: Das

We would like to see sustained momentum towards the alignment of inflation with the headline target, the RBI Governor said.

12:32 PM

RBI Guv reiterates 'pause not a pivot' stance on repo rate

It is a pause in this meeting of MPC. I reiterate what I said in the last meeting about the pause and not a pivot.

12:31 PM

We have no plans to regulate financial influencers as Sebi is already on it: RBI Guv

We have no plans to regulate financial influencers as Sebi is already on it, says the RBI Guv

12:29 PM

Monetory policy decisions actions are determined by domestic factors: RBI Guv

The RBI Guv said even as the monetory policy decisions are driven by domestic factors, we do keep a track of what International banks are doing. 

12:22 PM

No such information with me, RBI Guv on issuance of Rs 1000 note and withdrawal of Rs 500 notes

 On issuing of Rs 1000 note and withdrawal of Rs 500 notes the RBI Governor said no such information with me. He warned against any such speculation. 

12:18 PM

No room for complacency, prospects for growth are steadily improving: RBI Guv

Future action will depend on evolving situation. No room for complacency and prospects for growth are steadily improving. RBI's liquidity management will be nimble, RBI Guv Das said. 

12:08 PM

No specific date for opening up of digital rupee for the common public, says RBI Guv

No specific date decided for CBDC rollout, target is 1 mn customer by June end, says RBI Governor. The RBI also plans to make CBDC QR code interoperable with UPI.

 

12:00 PM

Jayanth R Varma expressed reservations on withdrawal of accommodation: RBI Guv

"The cumulative rate hike of 250 basis points undertaken by the MPC is transmitting through the economy and its fuller impact should keep inflationary pressures contained in the coming months. Monetary policy would need to be carefully calibrated for alignment of inflation with the target. Against this backdrop, the MPC decided to keep the policy repo rate unchanged at 6.50 per cent," the RBI Governor said. 

Das added that the MPC decided, by a majority of 5 out of 6, to continue with its stance of "withdrawal of accommodation". "Jayanth R Varma expressed reservations on this part of the resolution,"  Read more...

 

 

11:36 AM

Indian shares rise after RBI keeps repo rate unchanged at 6.5%

Indian shares rose on Thursday, with the benchmarks closing in on all-time highs, after the Reserve Bank of India (RBI) maintained key policy rates, as widely expected. The blue-chip Nifty 50 index was up 0.23% at 18,770.20 as of 10:44 a.m. IST, while the benchmark S&P BSE Sensex rose 0.23% to 63,285.99. Both the indexes were up 0.12% ahead of the RBI rate decision.

The RBI's monetary policy committee (MPC) left the repo rate at 6.50% for a second straight meeting. Read more...

11:25 AM

Explained: Repo rate unchanged at 6.5%, worst over for home loan borrowers

A repo rate pause signals that the RBI is maintaining a status quo until the economy improves substantially. This is good news for home loan borrowers as it signals that interest rates appear to be stabilising. Read more...

10:47 AM

RBI to issue RuPay forex cards, guidelines on default loss guarantee arrangement in digital lending

The RBI will issue guidelines on default loss guarantee arrangement in digital lending for orderly development of the eco-system and improve credit penetration, Governor Shaktikanta Das said. 

10:45 AM

Scheduled Commercial Banks can now set their own limits for borrowing: RBI Guv

To provide greater flexibility in liquidity management, the scheduled commercial banks (SCBs) excluding small finance banks can now set their own limits for borrowing in call and notice market within the prudential limits, RBI Governor Shaktikanta Das said. 

10:36 AM

Goal is to achieve inflation target of 4%, keeping inflation within comfort band of 2-6% is not enough: Das

In his speech, Das also said that India's forex reserves stood at $595.1 billion on June 2. Moreover, the current account deficit is expected to have moderated further in the last quarter of the previous financial year and "should be eminently manageable" in FY24.

"Our goal is to achieve the inflation target of 4% and keeping inflation within the comfort band of 2-6% is not enough," Das said. Read more...

 

 

10:30 AM

Forex reserves are at comfortable levels, says RBI Governor

Indian rupee has remained stable since January this year, the RBI Governor said.  Domestic demand condition remains supportive of growth; rural demand on revival path, he added. 

 

10:29 AM

Current account deficit expected to moderate further in Q4, remains eminently manageable: RBI Guv

Current account deficit expected to moderate further in Q4, remains eminently manageable, says RBI Guv

10:26 AM

Need to maintain Arjuna's eye on evolving inflation scenario, says RBI Guv

RBI lowers retial inflation projection to 5.1% during FY'24 from earlier estimate of 5.2%

 

 

10:23 AM

RBI keeps MSF rate unchanged at 6.75%

Average system liquidity is in surplus mode and could increase as Rs 2,000 notes get deposited in banks, the RBI Guv said. The RBI has kept MSF rate unchanged at 6.75%.

 

 

10:17 AM

RBI Policy: MPC votes to extend pause, keeps repo rate unchanged at 6.5%

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), on Thursday, announced its decision not to raise the repo rate. While announcing the decision, RBI Governor Shaktikanta Das said that the MPC took the decision unanimously.

"The MPC decided unanimously to keep the policy change unchanged at 6.5 per cent," Das said. 

 

He added that the MPC decided, by a majority of 5 out of 6, to continue with its stance of "withdrawal of accommodation". The MPC will take further decisions "promptly and appropriately as required," he added. Read more...

 

 

10:16 AM

GDP projection unchanged in FY24 at 6.50%, says RBI Governor

GDP projection unchanged in FY24 at 6.50%, says RBI Governor. RBI retains growth projection at 6.5% for FY'24, expects 8% growth in Q1, 6.5% in Q2, 6% in Q3 and 5.7% in Q4

10:14 AM

Headline inflation is still above target and is expected to remain so according to our projections: RBI Guv

Headline inflation is still above the target as per the latest data and is expected to remain so according to our projections, says the RBI Guv

10:13 AM

Close and continued vigil on evolving inflation is absolutely necessary: RBI Guv

Pace of global economic activity to decelerate due to geopolitical situation, says RBI Guv. MPC decided to remain focussed on withdrawal of accommodation of policy stance, he added.

 

 

10:09 AM

MPC decided by a majority of 5 out of 6 members to remain focused on withdrawal of accomodation

MPC has decided by a majority of five out of 6 members to remain focused on withdrawal of accomodation, says the RBI Governor 

10:08 AM

We can derive satisfaction from the fact that Indian economy and fin sector stand out as resilient, says Das

We can derive satisfaction from the fact that Indian economy and financial sector stand out as resilient. RBI has continued on focusing stability. Domestic macro fundamentals are strengthening, says RBI Governor Shaktikanta Das