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
Rs 2,000 notes worth Rs 3.62 trillion were in circulation at the end of March 2023. Notes worth Rs 1.8 trillion have come back, the RBI Governor said while addressing the press conference.
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.
The monetary policy panel began deliberations on Tuesday amid expectations that the central bank will keep the benchmark interest rates unchanged at 6.5 per cent on the back of easing retail inflation and the need to push economic growth.
Between May 2022 and February this year, the repo rate has been hiked by 250 bps to 6.5 per cent. In April, the MPC decided to hit the pause button on rate hikes. RBI Governor Shaktikanta Das emphasised that it was a pause and not a pivot while retaining the possibility of further tightening.
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...
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First Published: Jun 08 2023 | 8:08 AM IST