Page 30 - Monetary Policy Committee

Policy prudence

RBI should guard against risks to financial stability

RBI may go for further 25 bps rate cut in August policy meeting: Experts

The Monetary Policy Committee (MPC), headed by RBI Governor, is scheduled to meet for three days beginning August 4

M K Saggar to take over as ED in charge of RBI's monetary policy dept

This will also mean that Saggar will be included the six-member monetary policy committee (MPC) as an internal RBI member.

Data deficiency

Quality of numbers could affect economic policy response

MPC members see Covid-19 lockdown dealing a multi-year hit to economy

Demand impact will continue to weigh heavily on economic activity for some time, says Shaktikanta Das, but is optimistic about rural economy due to good farm harvest

Limited impact

Interest rate reduction may not push credit offtake

Last rate cut for now but there're more bullets in RBI's chamber

Following this, the reverse repo rate, or the rate at which the banks perk extra liquidity with the RBI, was reduced to 3.35 per cent from 3.75 per cent - both at their historic lows.

RBI says India GDP will contract in FY21, cuts repo rate by 40 bps to 4%

RBI extends the moratorium on loan repayments by three more months

Data deficiency

MPC will have to work with an incomplete inflation picture

How to bring banks back to the credit market

Concerted efforts are required from the central bank and the government

Letter to BS: RBI should take Monetary Policy Committee into confidence

RBI has to not only take MPC into confidence but has to see if ultimately the purpose of providing relief to the ailing sectors is served

Policy credibility

Monetary policy framework should not be undermined

The Indian version of quantitative easing

By resorting to the two-step OMOs, the RBI is managing the yield at both the shorter as well as the longer end

Can rate cut force banks to lend?

Credit guarantee by the government for banks' fresh loans to certain segments might do the trick at a small fiscal cost

140 bps rate cut in a little over a fortnight

This has been done to stop lazy banking. Banks are being encouraged to lend instead of parking their resources with the RBI and earn risk-free interest income

Covid an invisible assassin, preserve stability, arrest slump: MPC minutes

They noted that the pandemic hadn't destroyed the economy's production capabilities, and once the situation starts normalising, domestic demand would need to be stimulated swiftly

Coronavirus impact: Credit growth likely to remain modest, says RBI

MPC report says better transmission of rates would remain priority

'Covid-19 hangs over future like spectre': RBI in Monetary Policy Report

While efforts are being mounted on a war footing to arrest its spread, Covid-19 would impact economic activity in India directly through domestic lockdown, the central bank has said

Beyond virus: Setting course for a V-shaped recovery with right decisions

It's time for thoughtful decisions through 2020 and 2021, where the desired outcome is one where private investment in 2025 is superior to the value seen in 2011 in real terms

Decoding the 3-month moratorium

In the world of finance, a moratorium is a temporary suspension of an activity in response to sudden financial hardships