Live news updates: EMIs to rise as RBI hikes repo rate by 40 bps

The MPC raised the key lending rate or the repo rate by 40 basis points to 4.40%, Governor Shaktikanta Das said.

Image BS Web Team New Delhi

Live news updates: Home, auto and other loan EMIs are likely to increase after the Reserve Bank of India (RBI) hiked its key interest rate by 40 bps in a surprise move on Wednesday in an effort to tame inflation that has remained stubbornly above target in recent months.
The increase in repo rate - the rate at which RBI lends to commercial banks - to 4.40 per cent from a record low of 4 per cent is the first since August 2018 as well as the first instance of the RBI Governor-headed monetary policy committee (MPC) holding an unscheduled meeting for raising interest rates.
The MPC unanimously voted for a rate hike while maintaining the accommodative stance. While the inflation has remained above the targetted 6 per cent since January, Das said the inflation print in April is also likely to be high.

8:20 AM

Curfew extended till May 6 in Jodhpur, 140 persons arrested in connection with violence

The curfew that was imposed in Rajasthan's Jodhpur following incidents of violence in the district has been extended till May 6, as per an order issued by the District Police Commissioner.

"The curfew imposed in Jodhpur Commissionerate area on May 3 has been extended till May 6...Raikabagh Palace Bus Stand and Raikabagh Railway Station have been excluded from the curfew," read the order.

The students and teachers appearing for the examination have been exempted from the curfew. Also, personnel engaged in medical services, bank officials, Judicial officers and media personnel are exempted from the curfew.

8:15 AM

Google's new foldable 'Pixel Notepad' likley to have 5.8-inch outer screen

Google's 'Pixel Fold' has been in the news for quite some time now. The latest update for the foldable phone is that it will have a smaller outer display and an inner-size display similar to the Galaxy Z Fold4, as per industry insider Ross Young.

As per GSM Arena, allegedly called the 'Pixel Notepad,' will have a 5.8-inch outer display, wider and shorter than the Galaxy Z Fold4's 6.19-inch expected screen.

Confirmed by a previous leak, the 'Pixel Notepad' is rumoured to have similar-sized folding displays, which means that the Pixel Notepad will have a wider aspect ratio than the Fold.

8:28 PM

Growth to be in range of 7-8.5% given global uncertainties: CEA

Chief Economic Adviser V Anantha Nageswaran on Wednesday said India's growth is expected to be in the range of 7-8.5 per cent given the global uncertainties.
The International Monetary Fund recently lowered its growth forecast to 8.2 per cent which is higher than 7.2 per cent by the Reserve Bank of India.
8:24 PM

World will face a food crisis, says Brazilian minister

Brazil's Agriculture Minister Marcos Montes said on Wednesday that the world is set to face a food crisis and the country will be increasingly responsible for supplying both domestic and foreign markets with food.The South American agriculture powerhouse is one of the world's largest producers and exporters of products such as soybean, corn, sugar, coffee and meat. "Unfortunately, I have no doubt that we will face a global food crisis. And Brazil will have the responsibility of feeding both its people and the world," Montes said during an event, according to Reuters.
7:36 PM

GMR Group gets rights to operate Hyderabad airport for 30 more years

The Ministry of Civil Aviation (MoCA) has granted rights to the GMR Group to operate the Hyderabad international airport for 30 more years, according to a statement issued on Wednesday. Till date, the GMR Group had the rights to operate the Hyderabad airport till March 22, 2038. The airport was inaugurated on March 23, 2008.
7:16 PM

LIC IPO: Overall subscription at 0.66 pc on day 1

LIC's public offer, the country's biggest-ever IPO, saw the policyholders' portion being oversubscribed on the first day itself on Wednesday, though overall subscription stood at just 0.66 per cent. The government aims to generate about Rs 21,000 crore by selling 3.5 per cent stake in the insurance behemoth.
7:04 PM

Realty, auto, bank stocks tumble after RBI's rate hike

Interest rate-sensitive realty, auto and bank stocks on Wednesday fell sharply after the Reserve Bank hiked its key interest rate by 40 basis points (bps) in an unexpected move to tame rising inflation. From the realty pack, DLF tanked 5.28 per cent, Indiabulls Real Estate declined 5.05 per cent, Sunteck Realty went lower by 4.61 per cent, Godrej Properties fell 4.33 per cent, Sobha (3.82 per cent), Oberoi Realty (3.37 per cent) and Brigade Enterprises (2.24 per cent) on the BSE, PTI reported.
6:18 PM

Modi attends second India-Nordic summit in Copenhagen

Prime Minister Narendra Modi on Wednesday said there is much that India and the Nordic countries can achieve and contribute to global prosperity and sustainable development. Mod said this after attending the second India-Nordic summit in Denmark that primarily focused on cooperation in post-pandemic economic recovery, climate change and renewable energy, PTI reported.

4:39 PM

Govt revises India's wheat production estimate

The government has revised downwards the estimate for wheat production by 5.7 per cent to 105 million tonnes in the 2021-22 crop year ending June from the earlier projection of 111.32 million tonnes, as the crop productivity has been affected due to the early onset of summer.
4:16 PM

Expect cumulative 100-125 bps of repo rate hikes in FY2023: DBK Bank economist

"While inflation is unlikely to decline in the near term, today's move should help in pushing real rates towards neutral over the next few quarters. Rates across the curve will reprice factoring in a markedly more hawkish RBI. We continue to expect cumulative 100-125 bps of repo rate hikes in FY2023," says Radhika Rao, economist at DBK Bank, tells Reuters
3:44 PM

Expect three more rate hikes this year: HDFC Bank economist

"With the 40bps rate hike, the terminal policy rate is likely to be higher and we expect three more rate hikes this year. Finally, the rate hike also acts as a defence for the rupee ahead of the U.S. Fed's policy announcement," Sakshi Gupta, principal economist at HDFC Bank, tells Reuters.
3:33 PM

RBI has taken 'big leap' to tame inflation: Analyst

"From being behind the curve for some time, the Reserve Bank of India (RBI) has taken a big leap to try and bottle the inflation genie. A 120 bp increase in inflation forecast in April, change in policy focus to inflation from growth to eventually announcing an inter-meeting 40bp policy rate hike (unanimously at that), the RBI has sent the clear message that inflation needs to be tackled head-on even if it comes at the cost of growth," Kunal Kundu, India economist, Societe generale, Bengaluru, tells Reuters.
2:37 PM

RBI to hike the CRR by 50 bps to 4.5 per cent: Shaktikanta Das

RBI to hike the CRR by 50 bps to 4.5 per cent. This will result in withdraw of about Rs 87,000 crore from the banking system. The average surplus liquidity in the banking system was at over Rs 7 trillion in April: Shaktikanta Das 
2:24 PM

SDF adjusted to 4.15%, MSF to 4.65%: Shaktikanta Das

Standing Deposit Facility (SDF) adjusted to 4.15%, Marginal Standing Facility (MSF) to 4.65%: RBI Guv Shaktikanta Das
2:21 PM

Prices of edible oil may go up further: Shaktikanta Das

Food price inflation likely to continue and prices of edible oil may go up further: RBI Guv Shaktikanta Das
2:21 PM

April indications of persistence of good price pressures: Shaktikanta Das

April indications of persistence of good price pressures. Fuel price hike feeding into core inflation and seen to be intensifying in April: RBI Guv Shaktikanta Das
2:20 PM

Sharp acceleration in inflation to 7% in March due to high food prices: Shaktikanta Das

Sharp acceleration in inflation to 7 per cent in March due to high food prices: RBI Guv Shaktikanta Das
2:18 PM

Rebound in economic activity is broad-based: Shaktikanta Das

Rebound in economic activity is broad-based and the forecast of the fourth successive year of normal monsoon is positive: RBI Governor Shaktikanta Das
2:15 PM

We have been able to preserve microfinance stability despite synchronised shocks: Shaktikanta Das

We have been able to preserve microfinance stability despite synchronised shocks: RBI Guv Shaktikanta Das
2:14 PM

Shortages, volatility in commodity and financial markets are becoming more acute: Shaktikanta Das

Shortages, volatility in commodity and financial markets are becoming more acute, while the global economic recovery is losing pace: RBI Guv Shaktikanta Das

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First Published: May 04 2022 | 6:52 AM IST

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