Page 6 - Monetary Policy Committee

Cannot cut rates due to one-off inflation dip, says RBI governor Das

The six-member Monetary Policy Committee of the RBI has kept the policy repo rate unchanged at 6.5% since February 2023

RBI MPC Meet: Repo rate unchanged at 6.5%, check GDP, CPI projections here

The RBI MPC has also decided to keep its stance of 'withdrawal of accommodation' unchanged with a majority of 4-2

RBI MPC highlights: Deposit-credit divergence could lead to liquidity management issue, says Das

RBI Monetary Policy Meeting 2024: Catch all the latest highlights on RBI's monetary policy announcements here

Bond market participants see OMO sales as liquidity surplus surges

The liquidity in the banking system has improved significantly on the back of government spending

RBI monetary policy: The tide is turning

The RBI's monetary policy should be driven by domestic factors and not the Fed

RBI may hold repo rates amid high food prices: Business Standard poll

Most respondents expect rate cuts from Dec; change in stance unlikely

BS Poll: Majority sees neutral interest rate between 1% to less than 2%

A debate on real interest rate has picked up steam as the repo rate has been kept unchanged at 6.5 per cent since February 2023 despite inflation prints showing a downward trend

RBI's MPC minutes: External members make a strong case for rate cut

Internal members, however, cited food inflation risk for maintaining the status quo and said the last mile of disinflation has been slow

Rational policy pause

Food prices tend to obstruct the disinflation process

RBI likely to reduce key repo rate when inflation stabilises: India Inc

India Inc welcomed the Reserve Bank's move to raise the growth outlook for FY25 and stated that it expects the Reserve Bank to reduce the key repo rate when inflation stabilises within its target band. The Reserve Bank, which has been mandated to ensure inflation remains at 4 per cent (with a margin of 2 per cent on either side), mainly factors in CPI while arriving at its monetary policy. It left the key interest rate unchanged as widely expected, keeping the focus on inflation amid robust economic growth that is likely to provide the new Modi government headroom for manoeuvring reforms. The central bank also retained its projection for retail inflation at 4.5 per cent for the current fiscal assuming a normal monsoon, while emphasising that uncertainties related to food price outlook warrant a close monitoring. Consumer Price Index (CPI)-based retail inflation has been projected at 4.5 per cent with quarter-wise projections at 4.9 per cent in Q1 (April-June), 3.8 per cent in Q2, 4

Repo rate unchanged for 8th time, GDP raised: 5 key takeaways from RBI MPC

The decision to maintain the repo rate and raise the GDP forecast was made during the Monetary Policy Committee meeting held between June 5 and June 7

RBI monetary policy: When and where to watch the governor's announcement?

RBI Monetary Policy Committee meeting LIVE updates: Economists expect the central bank to maintain the repo rate at 6.5 per cent for the eighth consecutive time

MPC meeting: How has inflation behaved since RBI hiked repo rate last year

The expectations for the RBI panel to begin cutting interest rates soon are there, however, the exact timing remains uncertain

BoE moves closer to first rate cut since 2020, as second official backs cut

The BoE said on Thursday its Monetary Policy Committee voted 7-2 to keep rates at a 16-year high of 5.25% after Deputy Governor Dave Ramsden joined Swati Dhingra in voting for a cut to 5%

Last-mile challenges

US inflation is altering expectations

Anchoring expectations

Food prices are disrupting the disinflation process

Shifting expectations

No respite from US inflation and geopolitical tensions

India's consumption story gets a facelift as rural demand shows promise

FMCG companies have also witnessed a pick-up in rural areas.

RBI's status quo on repo rate to impact retail auto sales, says Fada

Manish Raj Singhania, prez of FADA, said that favourable govt policies along with government spending, and the expected good monsoons, are likely to fuel demand, particularly in rural areas this year

The last mile

Climate issues can complicate monetary policy