The RBI will announce the review of the policy meeting on April 9
Swiss investment bank UBS believes an accommodative monetary policy could help India sustain growth amid rising global uncertainties and trade disputes
The RBI reduced its policy repo rate by 25 basis points (bps) to 6.5 per cent in the first rate cut since May 2020, when there had been a 40-bp reduction to 4 per cent amid Covid
Global uncertainty demands caution on monetary policy
But monetary policy decisions are complex and there is merit in assessing the "right time" while weighing the cost and benefits of such moves
In its Feb 1 budget, the government is not expected to increase infrastructure spending, a main driver of growth in past years, leaving the onus on the RBI to revive the $4 trillion economy
The government has already started the process of finding a successor for Patra
Next time the GDP numbers are announced, the slowdown could be attributed to global economic weakness, rising oil prices, or another drop in domestic capex
India's financial sector, dominated by public sector banks in 1991, had been long repressed by rigid controls on interest rate
India's economic growth slowed more sharply than anticipated in the July-September period of FY25, dropping to a seven-quarter low of 5.4 per cent
Reserve Bank Governor Shaktikanta Das on Tuesday said the fiscal-monetary coordination was at its best during the last six years even as he thanked Prime Minister Narendra Modi for giving the opportunity to head the monetary authority of the country. Das, in a series of posts on X, on his last day of his six-year term as RBI Governor, also thanked the Finance Minister, various stakeholders and his colleagues at the central bank. "Immensely grateful to the Hon'ble PM @narendramodi for giving me this opportunity to serve the country as Governor RBI and for his guidance and encouragement. Benefited a lot from his ideas and thoughts," he said in a post on X from his personal handle. Expressing gratitude to Finance Minister Nirmala Sitharaman for her constant support and backing, he said, fiscal-monetary coordination was at its best and helped to deal with multiple challenges during the last six years. He also thanked all the stakeholders in the financial sector and in the economy; expe
Monetary policy support to growth will be limited
RBI Monetary Policy Meeting Dec 2024 Updates: Catch all the updates here
Reserve Bank of India Monetary Policy Committee: Food prices likely to keep headline inflation up in the near future
Monetary policy support will be critical to China's economy next year as the US president-elect has vowed to impose steep tariffs on Chinese goods
This policy comes at a time when growth is slowing, inflation is still pretty high, and the rupee has started losing value against the dollar
Monetary policy may be 98 per cent talk and only 2 per cent action, but the cost of sending the wrong message can be high, Patra cautioned
SBI MD says banks would look for monetary policy stance and policy rate action to decide actions
Nayar emphasised the importance of local inflation factors like food and rent on inflation expectations
BS BFSI Summit: While food inflation is a prominent factor in India's economic policy, global influences, particularly from the US Fed, cannot be overlooked, say economists at Business Standard summit