Page 12 - Monetary Policy

No proposal to increase overseas investment limits for MFs: RBI Governor

There is no proposal to increase the overseas investment limits for domestic mutual funds at the moment, Reserve Bank Governor Shaktikanta Das said on Wednesday. Speaking to reporters at the customary post-policy review press conference, Das acknowledged that there have been requests from mutual funds and other market players for relaxations of the limits. "We have examined that. But we have not taken a positive decision on it yet. There is no proposal to increase the limits at the moment," Das said. Deputy Governor T Rabi Sankar said the same issue had come up a year ago as well and it was decided to maintain the status quo then. It can be noted that there is an overall industry-level limit of USD 7 billion for mutual funds. The RBI regulates the fund inflows and outflows into the country. Capital markets regulator Sebi had in June last year permitted mutual funds to again invest in foreign stocks within the aggregate mandated limit of USD 7 billion after a correction in stocks.

RBI to launch pilot project for QR-based coin vending machines in 12 cities

These vending machines will dispense coins against a debit to the customer's account. The process will use Unified Payments Interface (UPI) instead of physical tendering of notes

RBI MPC: When and where to watch policy announcement by Shaktikanta Das

RBI monetary policy: In December, Das had said that despite consecutive rate hikes, core inflation had continued to remain 'sticky'

Reserve Bank widely seen delivering final 25 bps hike, say economists

Annual retail inflation edged down in December from the previous month and remained within the central bank's comfort zone 2%-6% range for a second consecutive month

Sooner or later, US Fed may need technical tweaks for rate control toolkit

The Fed is widely expected to raise the target rate to 4.5% to 4.75% at Wednesday's Federal Open Market Committee meeting

Economic survey likely to peg 2023-24 growth at slowest in 3-yrs: Report

According to the report, the survey will likely caution that pressure on the rupee could continue due to the tightening of monetary policy

High inflation causing tension between monetary and fiscal policy: Gopinath

On what needs to change, she said for the countries to manage such a difficult trade-off right, fiscal policy has to play a role

Frontloaded actions to bring inflation further under control: RBI report

India's retail inflation has moderated after remaining above the upper tolerance level since January, and frontloaded monetary policy actions are expected to bring it further under control, the Reserve Bank of India (RBI) said in a report on Thursday. The RBI's Financial Stability Report (FSR) also said the persistence and broadening of core inflation may continue to exert pressure going forward. "Frontloaded monetary policy actions are expected to bring inflation into the tolerance band and closer to the target while anchoring inflation expectations," the FSR noted. The Indian economy is confronting strong global headwinds but the sound macroeconomic fundamentals and healthy financial and non-financial sector balance sheets are providing strength and resilience and engendering financial system stability, it added. "Inflation, though elevated, is retreating in response to frontloaded monetary policy actions and supply side intervention," the report noted. The RBI said the increase

RBI imposes penalty of Rs 13.9 lakh on Mynd Solutions for non-compliance

Non-promoter shareholding in the company exceeded the 10% ceiling prescribed for TReDS operators

Monetary policy making: 2022 was year of reset, 2023 could be a long pause

25 bps raise likely in Feb, before RBI hits status quo button, feel experts

Reducing core inflation key to easing prices: MPC member Shashanka Bhide

Core inflation, calculated after stripping out volatile food and energy prices, has stayed above 6% for 14 months in a row, while retail inflation cooled to 5.88% in November

Pent-up demand, infra spend drove growth amid global headwinds: FinMin

In its latest Monthly Economic Review, the Ministry said global economic developments remain complicated in November, and that fiscal and monetary policymakers need to remain vigilant

Fear of sustained aggressive monetary policy by US Fed rattles investors

Both Sensex and Nifty post biggest losses since Sept 26 as Covid cases in China, oil price spike worsen sentiment

Best of BS Opinion: Covid's China syndrome, hedging risks, and more

Here is the best of Business Standard's opinion pieces for today

India to face export shocks from global recession: BFSI economists' panel

While two of the eminent panelists - Ghosh and Nayar - said they expect a pause in the monetary cycle by the MPC, Chakraborty, Sagar, and Kapoor said the MPC could still hike by 25-50 basis points

Bank of Japan maintains key rates, widens range of long-term govt bonds

Bank of Japan has decided to adjust its yields on 10-year govt bonds in a policy move to address mounting costs connected to its long-standing monetary easing measures

WPI inflation eases to 21-month low as pricing pressure softens in November

Fruits and vegetables, protein-rich items such as eggs, meat and fish drag down prices; Core inflation eases for seventh consecutive month to 3.5%

RBI policy: Here is why the central bank needs to stop raising rates

RBI, following conventional wisdom, is guilty of wanting to show that it's doing something to bring down inflation while perhaps helping worsen it by slowing down efforts to increase capacity, output

More to come

Containing inflation remains a challenge

Little scope for RBI to take its foot off the gas

The RBI need not match the Fed one-to-one but there seems little scope to take its foot off the gas