The Economic Survey, last week, had suggested that there should be one more round of AQR of banks after the Covid-related forbearance is over
Despite the fiscal activism in the Budget, the MPC stated that the recovery was yet to gain firm traction and needed continued policy support
Projection for CPI-based inflation revised to 5.2% for Q4 of FY21, for H1 of FY22 at 5% to 5.2%, and for Q3 of FY22 at 4.3%
The central bank had slashed the repo rate by 115 basis points since late March 2020 to support growth
Bi-monthly Monetary Policy statement by Reserve Bank of India Governor Shaktikanta Das.
Rise in interest rates could hit corporate earnings, hinder economic recovery
The MPC will keep the policy repo rate on hold, unanimously, despite the prospect of a drop in CPI inflation to 5 per cent in Q4 and then likely to average 4.5 per cent in FY22
We think the MPC could express its willingness to maintain the accommodative monetary stance at least till H1FY22, which should help sentiments
Beyond hype, if the Budget creates a platform for growth, the RBI will have to change the policy's stance, but that won't happen - now or even in April
The six-member MPC headed by RBI Governor is scheduled to meet for three days starting February 3. The resolution meeting would be announced on February 5
Monetary policy likely on hold for foreseeable future; Fed chief Powell says vaccination program key to economy
The reason why short-term rates have spiked is liquidity normalisation
RBI to restore liquidity operations timing to normal hours in a phased manner, to start with variable rate reverse repo window from Jan 15
The RBI must push the government to put the periodical rebasing of the CPI into the inflation targeting agreement
China, India, Russia and Mexico are among those predicted to cut their benchmarks even further. Only Argentina and Nigeria are forecast to raise rates
The cities include, Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi, and Thiruvananthapuram
Govt and RBI should fix potential policy risks to inflation
Working papers don't necessarily reflect RBI's views, but invariably end up doing just that. This paper, by H K Behera and Michael Patra, could be one such
Maintaining 4 per cent inflation is appropriate for India as targeting a lower rate could impart deflationary bias to the monetary policy, said a Reserve Bank paper.
The current range of 2-6 per cent is valid till this fiscal year-end