RBI MPC Updates: Shaktikanta Das headlines inflation, says no room for knee-jerk reactions

RBI Monetary Policy Meeting Dec 2024 Updates: Catch all the updates here

4:03 PM

RBI asks banks to collaborate with MuleHunter.AI to find mule accounts

The RBI on Friday asked banks to collaborate with its initiative MuleHunter.AI to weed out mule accounts which are used to commit financial fraud. A mule account is a bank account used by criminals to launder illicit funds, often set up by unsuspecting individuals lured by promises of easy money or coerced into participation. The transfer of funds through these highly interconnected accounts makes it difficult to trace and recover the funds.

3:34 PM

RBI MPC Live Updates: Effort is to de-risk our trade, no step towards de-dollarisation: Guv Das

RBI MPC Live Updates: There has been no discussion on BRICS currency. India has not taken any step towards de-dollarisation. Our effort is to de-risk our trade, says RBI Governor Shaktikanta Das.

3:30 PM

Realtors expect housing demand to remain strong on stable mortgage rate, hope for rate cut in new year

Realtors industry bodies CREDAI and NAREDCO expect the RBI to reduce key interest rate in its next monetary policy to boost housing demand, which they said will remain strong with the stability of interest rates on home loans.

3:12 PM

RBI MPC Live Updates: ‘'Repo rate cut likely in February'

The Reserve Bank of India has signalled that it is unlikely to lower the repo rate until there is firm assurance that inflation is easing towards the target. With the economy at a pivotal stage for both growth and inflation, February emerges as a potential timeline for a rate cut. A key element to monitor will be the policies introduced under the Trump administration and their potential effects on inflation and currency dynamics.

3:06 PM

RBI to allow small finance banks to extend credit lines through UPI

The Reserve Bank on Friday proposed to allow small finance banks to extend pre-sanctioned credit lines through Unified Payments Interface (UPI). UPI is an instant real-time payment system developed by NPCI for transactions through mobile phones. In September 2023, the scope of UPI was expanded by enabling pre-sanctioned credit lines to be linked through UPI and used as a funding account by commercial banks excluding Payments Banks, Small Finance Banks (SFBs) and Regional Rural Banks.

3:02 PM

RBI MPC Meeting LIVE: ‘Indian markets likely to stay cautious amid FII outflows

RBI MPC Live Updates: The Reserve Bank of India's move to boost liquidity by reducing the CRR, adding more than Rs 1 trillion to the banking system, has been positively received. However, without a corresponding interest rate cut, this step may not have a significant impact on market sentiment. Considering the prevailing conditions, the Indian markets are expected to remain subdued as foreign institutional investors (FIIs) persist with their selling activities.

2:57 PM

How did the RBI get growth projections for Q2 wrong?

After the light-hearted exchange, the reporter moved on to a key economic question, asking why the RBI’s growth estimate for the second quarter had dropped to 5.4 per cent from 7 per cent.

 

MPC member Michael Debabrata Patra explained that the growth challenges stemmed from issues on both the demand and supply sides:  

Demand side: The main problem is weak investment, driven by a slump in sales growth.

Supply side: Manufacturing remains the critical issue, with inflation dampening urban consumer spending, leading to reduced sales and investments.

2:51 PM

RBI's CRR cut brings relief: Time for borrowers to review home loan terms

The Reserve Bank of India (RBI) on Friday reduced the cash reserve ratio (CRR) by 50 basis points (bps) to 4% from 4.5 per cent, freeing up funds in the banking system. CRR is the percentage of a bank’s deposits that must be kept with the RBI as liquid reserves. The central bank’s Monetary Policy Committee, however, left the repo rate unchanged at 6.5 per cent in a majority 4-2 decision. This marks the eleventh consecutive policy meeting over the past 22 months without a change in the repo rate, which serves as a benchmark for lending rates.

Read full report here

2:49 PM

Diamond sector facing challenges during last 3 yrs due to reduced demand

The country's diamond sector has been facing challenges during the last three years due to reduced demand in major export destinations and supply side issues such as G7 sanctions on Russia, Parliament was informed on Friday.

2:48 PM

RBI MPC Update: Sensex, Nifty 50 remain flat with a negative trend post policy announcement

The Indian equity market showed little movement and leaned slightly negative following the Reserve Bank of India's (RBI) policy announcement. By 2:30 pm, the Sensex declined by 53.39 points (0.07%) to stand at 81,712.47. Similarly, the Nifty 50 dropped 18.30 points (0.07%) to 24,690.10. The Bank Nifty index also reflected subdued trading, slipping by 17.30 points (0.03%) to reach 53,586.25.

2:43 PM

RBI MPC Meeting LIVE: 'For homebuyers, steady rates offer clarity and encourage more people'

Sandeep Ahuja, CEO, Atmosphere Living, said, "The RBI's decision to maintain the repo rate is a significant boost for the real estate sector, ensuring stability in home loan interest rates and fostering confidence among both buyers and developers. For homebuyers, steady rates offer clarity and encourage more people, including those on the fence, to take the plunge into homeownership."

2:31 PM

RBI raises FY25 inflation estimate to 4.8%, CPI to remain elevated in Q3

The Reserve Bank on Friday raised the inflation projection for current fiscal year to 4.8 per cent from 4.5 per cent with Governor Shaktikanta Das saying lingering food price pressures are likely to keep headline inflation elevated in the December quarter.

 

Consumer price index (CPI)-based inflation increased sharply in September and October 2024 led by an unanticipated increase in food prices. Core inflation, though at subdued levels, also registered a pick-up in October. Fuel group remained in deflation for the 14th consecutive month in October.

Read full report here

2:16 PM

CRR cut to increase liquidity, help exporters get credit at easy terms: FIEO

The RBI's decision to cut Cash Reserve Ratio (CRR) will increase liquidity in the system, thereby helping exporters get credit at easy terms, FIEO said on Friday. Cash Reserve Ratio is the proportion of deposits that banks must keep with the central bank. The RBI has slashed CRR by 50 basis points to 4 per cent, effective in two tranches on December 14 and December 28.

2:15 PM

Where did FIIs park money in Nov? IT, realty, BFSI see highest inflows

November 2024 saw Foreign Institutional Investors (FIIs) adjustting their portfolios amidst evolving market conditions. While Information Technology (IT), Banking, Financial Services, and Insurance (BFSI), and Real Estate (Realty) saw the largest inflows, Oil & Gas, Automobiles (Autos), Telecommunications (Telecom), and Fast-Moving Consumer Goods (FMCG) sectors experienced the most significant outflows, shows data analysed by JM Financial. 

Read full report here

2:13 PM

RBI Monetary Policy Live: Shaktikanta Das warns of rising inflation risks

Shaktikanta Das pointed out that the increasing occurrence of weather-related events, financial market volatility, and geopolitical tensions present considerable risks of driving inflation higher.

1:44 PM

RBI supports growth with liquidity boost but holds rates amid high inflation

The Reserve Bank of India (RBI) kept its key interest rate unchanged on Friday but cut the cash reserve ratio that banks are required to hold for the first time in over four years, effectively easing monetary conditions as economic growth slows. India's GDP growth rate fell unexpectedly to 5.4% in the July-September quarter, its slowest pace in seven quarters, while inflation is quickening again and the rupee has fallen to record lows, limiting the RBI's room to manoeuvre heading into what looks to be a globally turbulent 2025.

1:42 PM

RBI Monetary Policy Meeting: FDI In India Increased

RBI Governor Shaktikanta Das highlighted the performance of India's external financing during the first half of the year, noting a strong rise in gross foreign direct investment (FDI). However, net FDI saw a decline due to increased repatriations and higher outward FDI. Foreign portfolio investment (FPI) inflows into Emerging Market Economies (EMEs) showed a general slowdown in October 2024. Despite this trend, India recorded net FPI inflows of $9.3 billion in FY25 (April-December), primarily driven by investments in the debt segment. External commercial borrowings and non-resident deposits also posted higher net inflows compared to the previous year. "India’s external sector continues to demonstrate resilience, as evidenced by its strong performance across various key indicators," Das stated.

1:39 PM

BSE shares extend rally, surge 18% in 2 days; nearly double within 3 months

Shares of BSE hit a new high of Rs 5,409.65, gaining 4 per cent on the National Stock Exchange (NSE) in Friday’s intra-day trade backed by heavy volumes. In the past two days, the stock price of exchange and data platform company has rallied 18 per cent. It surpassed its previous high of Rs 4,989.80 touched on October 14, 2024. 

1:22 PM

What does RBI's policy decision mean for the markets? Experts weigh

The Reserve Bank of India (RBI) today, December 6, in its policy decision kept the repo rate unchanged at 6.5 per cent but cut the cash reserve ratio (CRR) by 50 basis points (bps) to 4 per cent. The CRR is the percentage of a bank's total deposits that it is required to maintain in liquid cash with the RBI as a reserve.

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1:20 PM

RBI allows small finance banks to offer pre-sanctioned credit via UPI

RBI Governor Shaktikanta Das, following the Monetary Policy Committee (MPC) meeting on Friday, December 6, announced that Small Finance Banks (SFBs) will now be permitted to provide pre-sanctioned credit lines through the Unified Payments Interface (UPI). This move aims to support underserved groups, including small businesses, micro-entrepreneurs, and individuals in rural and semi-urban regions.

 

Read full report here

1:13 PM

What did RBI Governor Shaktikanta Das say about his tenure extension?

Reserve Bank of India (RBI) Governor Shaktikanta Das shared a light-hearted moment when a Business Standard reporter asked him about his term extension at the press briefing after the Monetary Policy Committee (MPC) meeting on Friday. When asked whether he would receive an extension on his term, the governor dodged the question with a smile, saying, “I’m not giving you any headline today.” During the question-and-answer session, the reporter asked about Das’s tenure, which is set to end on December 10.

 

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1:08 PM

Forex reserve is strong and a large part of recent depletion due to valuation losses, says RBI Governor

12:54 PM

Mule Hunter is AI infrastructure. It will use database to detect frauds: RBI Dy Governor

RBI's idea of rolling out Mule Hunter is to create an infra base: RBI Deputy Governor

12:52 PM

'De-dollarisation' not on the table at all, certainly not our objective: RBI Guv

12:50 PM

Cannot predict how the forex market will play out: RBI Governor Shaktikanta Das

12:50 PM

Our forex reserves are robust despite some losses; confident of dealing with any spillover: Das

12:46 PM

No scope for knee-jerk reactions, we need more evidence before taking any monetary policy action: Governor Das

12:46 PM

RBI MPC LIVE: Marginal Standing Facility rate unchanged at 6.25%

12:45 PM

The horse (inflation) has made a valiant effort to bolt out, our effort is to keep it on tight leash: RBI Guv

12:43 PM

Credibility of inflation target has to be preserved: RBI Governor Shaktikanta Das