Monetary Policy Review

Chief Economic Advisor V Anantha Nageswaran on Friday said monetary policy tools such as interest rate adjustments may become less effective in tackling inflation in a world increasingly vulnerable to supply-side disruptions. "Fiscal and other public policy measures will be more important because raising interest rates will not solve the supply-induced problems. If anything, it may even be counter-productive," he said at the 9th Annual Food Systems Dialogue here. Amid persistent supply induced issues, countries will have to use all kinds of flexibilities with regards to the inflation targeting framework, he said. "Since 2022, very few countries have met their inflation target. So, it will be there as a framework, but I think countries will take creative liberties with it, as they have to," he added. Supply chain disruption following the Russia-Ukraine war, which has been ongoing since February 2022, followed by the West Asia crisis, has resulted in soaring prices, especially energy

VK Vijayakumar said that the pivot in stance, alongside an evolving macroeconomic outlook, strongly signals that two more rate hikes are highly probable in this tightening cycle.

Malhotra also said that there is no reduction in the central bank's holdings of US treasuries

The governor cited strong growth and lower-than-expected inflation as the key reasons for keeping the repo rate unchanged in the February policy meet

After slashing repo rates for three consecutive months since February, the MPC kept the rate unchanged at 5.5 per cent in August

Banks will be setting up camps at the Panchayat-level from July 1 to September 30, to provide re-KYC services at consumers' doorsteps

RBI MPC: The odds of another cut in the August meeting are rising after the US imposed a 25 per cent tariff on Indian exports

The MPC meeting is held bi-monthly to decide the interest rates, inflation, and growth estimates

After keeping rates unchanged for 11 meetings, the RBI has slashed repo in the last three policy reviews; economists await the August 6 outcome

Reserve Bank of India Monetary Policy Committee: Food prices likely to keep headline inflation up in the near future

The Reserve Bank of India (RBI), too, left the benchmark repo rate unchanged at 6.5 per cent and kept the policy stance unchanged on Thursday

RBI MPC Meeting Live Updates: RBI's MPC which began on February 6 has concluded today. The Central bank's MPC has decided to keep the repo rate unchanged at 6.5%. Catch all updates here

The central bank believes that the decision to set up a regulatory body will strengthen the pricing and risk management of credit by these entities

Monetary policy has to remain extra alert to be ready to act as and when warranted to preserve the hard earned macroeconomic stability, Reserve Bank Governor Shaktikanta Das has said. The fundamental goal of the monetary policy is to align inflation with the 4 per cent target and anchor inflation expectations, Das said, according to the minutes of the six-member Monetary Policy Committee (MPC) released by the RBI on Friday. The MPC in its last meeting earlier in the month, decided to keep the benchmark lending rate at 6.5 per cent, for the fourth time in a row, in a bid to keep retail inflation under check. "Monetary policy has to remain extra alert and ready to act, if the situation warrants. The hard earned macroeconomic stability has to be preserved," Das said while voting to keep the benchmark lending rate unchanged at 6.5 per cent along with five other members of the MPC. Das had cautioned that recurring incidences of large and overlapping supply side shocks bring with them th

A change in stance could be inferred by the markets as a definite sign of rates peaking

The Australian Parliament on Monday ratified the Economic Cooperation and Trade Agreement (ECTA) with India, paving the way for implementing the deal as early as January 1, 2023

Swap rates decline post fall in US, India inflation

RBI Monetary Policy Live update: This would be the fourth hike in the policy repo rate by the Reserve Bank of India, which is currently at 5.4%

The current account deficit remains uncomfortably high as India's growth momentum outpaces the rest of the world.

Currency trades in a narrow zone; ends the day at 77.71 against dollar