Page 14 - Monetary Policy Committee
RBI should pause rate hikes as growth fears loom: MPC member Varma
India's central bank should pause interest rate hikes, despite unacceptably high inflation, to avoid stalling a recovery in economic growth, monetary policy committee member Jayant Varma said
 "RBI should pause rate hikes as growth fears loom: MPC member Varma")
India's policy hawk sees end of aggressive hikes amid growth fears
India's most hawkish rate-setter said the policy rate was reaching a level that allows past aggressive action to cool inflation without inflicting too much pain on the economy
 "India's policy hawk sees end of aggressive hikes amid growth fears")
India's real rate shouldn't be more than 1%: MPC member Ashima Goyal
In a Q&A, she says the interest differential with US does not matter so much because India has caps on interest sensitive inflows. Overseas investment is a very low share of the country's debt market
 "India's real rate shouldn't be more than 1%: MPC member Ashima Goyal")
Sharp differences among MPC members on future interest rate hikes
The next review of the monetary policy committee is scheduled on December 5-7
 "Sharp differences among MPC members on future interest rate hikes")
RBI's repo rate hike was necessary to combat inflation risks: MPC minutes
The MPC is of the view that further calibrated monetary policy action is warranted to keep inflation expectations anchored
 "RBI's repo rate hike was necessary to combat inflation risks: MPC minutes")
As MPC fails on CPI mandate, RBI's growth-inflation balance gets trickier
The central bank will now have to provide a report to the government explaining the reasons for the failure and the steps to be taken
 "As MPC fails on CPI mandate, RBI's growth-inflation balance gets trickier")
As MPC raises growth projections, what makes the panel so optimistic?
The MPC believes that there is growth momentum due to better farm production, government policies to boost capex, improvement in business and consumer sentiment
 "As MPC raises growth projections, what makes the panel so optimistic?")
RBI plays out familiar script, more rate hikes to follow
In 2019, when retail inflation was 3%, the policy rate was 5.75%. Now inflation hovers around 7% and the policy rate is 5.9%. It needs to move up
RBI expects inflation to come down to 4% over the next two years
RBI which announced the review of policy today, decided to increase the policy repo rate by 50 bps to 5.9%
 "RBI expects inflation to come down to 4% over the next two years")
Inflation, external pressure priority over growth: Finance ministry
The MPC also cut its FY23 GDP growth forecast to 7 per cent from 7.2 per cent, with Governor Shaktikanta Das acknowledging that there were downside risks to economic growth
 "Inflation, external pressure priority over growth: Finance ministry")
Raising the rate and the bar
Finally, the RBI is right in not providing a forward guidance in the current uncertain environment but providing a detailed explanation of keeping the stance unchanged
RBI policy projections: Sept inflation to hit five-month high of 7.6%
Central bank will have to write to government explaining the reasons of its failure to contain inflation up to 6%
 "RBI policy projections: Sept inflation to hit five-month high of 7.6%")
RBI Monetary Policy: Repo rate up by 50bps; here's how it will impact you
On Friday, RBI increased the repo rate by 50 basis points taking the key repo rate to 5.9%; here is why it should matter to you
 "RBI Monetary Policy: Repo rate up by 50bps; here's how it will impact you")
RBI monetary policy: Repo rate hiked by 50 bps, here is what it tells us
RBI Policy: Shaktikanta Das announced the RBI MPC's decision to hike the repo rate by 50 basis points to 5.9% and slash the GDP forecast for FY23 to 7% from 7.2% earlier
 "RBI monetary policy: Repo rate hiked by 50 bps, here is what it tells us")
Rupee weakness likely to pressure RBI on 50-bps rate hike: Analysts
Currency closes at 81.85/$, 9 p higher than previous close
 "Rupee weakness likely to pressure RBI on 50-bps rate hike: Analysts")
RBI policy: How inflation, repo rate and demand are linked to each other
With the RBI MPC expected to announce its decision on Friday, we explain how inflation, repo rate and demand are linked to each other
Small savings rate may remain unchanged for Oct-Dec qtr despite RBI moves
If this happens, it will be the 10th straight quarter of status quo; govt official says Centre did not cut rates when policy rates were being cut during pandemic
 "Small savings rate may remain unchanged for Oct-Dec qtr despite RBI moves")
Sensex falls 509 pts, Nifty near 16,850; RIL, ITC shed 3%, pharma stocks up
CLOSING BELL: Among sectors, the Nifty Metal, and PSU Bank indices dipped 2 per cent each, while the Nifty Pharma index gained 0.6 per cent
 "Sensex falls 509 pts, Nifty near 16,850; RIL, ITC shed 3%, pharma stocks up")
RBI MPC: Experts see a 50 bps hike, pressure on the real estate sector
Costlier EMIs and the limited ability of banks to transmit the rate hikes to customers may lead to the real estate sector becoming among the worst impacted sectors
Will RBI go for 50-bps rate hike this week?
This hike is par for the course - not to fight inflation alone but also to stem currency depreciation