Page 6 - Monetary Policy

Growth needs to be supported by cheaper credit: MPC external member Nagesh

Food inflation driven by supply side rather demand which is addressed by monetary policy

Economists caution on RBI's growth optimism, project FY25 growth below 7.2%

RBI's confidence on growth has surprised market participants at a time when high frequency indicators pointing towards slowing economic activity

Markets snap six-session losing streak; Sensex up 584 pts, Nifty tops 25K

Indices up about 1% as China rally loses steam

IMF postpones scheduled consultations with Russia citing technical issues

Ukraine and its Western allies had objected to the mission to Russia on grounds that it would show relations with Russia to have been normalised

MPC and Inflation: Tracking non-food retail inflation trends in India

If monetary policy cannot influence food inflation, why should it not subject its stance to non-food price spiral?

What US Fed does today, world central banks need not do tomorrow

The trend of central banks following their American counterpart's lead is not always certain

Monetary policy: No concern on growth, no comfort on inflation

The RBI estimate of growth, as well as, inflation for the current financial year remains unchanged, but there has been some fine-tuning

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

RBI's proposed liquidity norms expected to raise demand for bonds

The new norms will pose requirements for higher liquid assets for the banks to shore up their LCRs

No plans to allow business houses to promote banks: RBI Governor Das

Governor Shaktikanta Das on Friday said the Reserve Bank does not have any plan to allow business houses to promote banks at present. Allowing corporate houses to promote banks exposes one to conflict of interest risks and related-party transactions, Das said, speaking at an event organized by the Financial Express here. "At this point, there is no thinking in that direction," Das said, replying to a specific query on whether there is any consideration to allow business houses. The RBI had disqualified a long list of conglomerates from floating a lender in the last round of licensing around a decade ago. The issue was revived again in 2020, with a Reserve Bank of India (RBI) working group supporting it, given the potential to get the capital for helping meet the country's growth aspirations. Underlining that banks are different from other businesses, he said experience worldover has shown potential conflicts of interest and issues relating to related-party transactions, if busines

With growth steady, policy must focus on inflation: RBI Governor Das

Reserve Bank Governor Shaktikanta Das on Friday said the monetary policy has to be "clearly and unambiguously" focused on inflation in an environment like the current one, where growth is steady. Amid a debate around neutral rates, Das said "theoretical and abstract concepts" as arrived at are based on a person's judgment and cannot determine the policy in the real world. It can be noted that the RBI has been steadfastly maintaining the status quo on interest rates, and there is increasing dissent among some members of the rate-setting panel who are in favour of rate cuts to promote economic growth lately. Replying to those who flag the impact on growth because of the elevated interest rates, Das said that the growth has been robust even with the current interest rates and added that RBI is optimistic that its 7.2 per cent real GDP expansion estimate for FY25 is being achieved. Moreover, the nowcast team is pointing towards a 7.4 per cent growth in the June quarter as against the .

Toronto home sales rise in June after four straight months of decline

The Bank of Canada cut rates by 0.25 per cent to 4.75 per cent in early June, saying monetary policy no longer needed to be as restrictive

Switch to India's longer-dated bonds extends as index inclusion date nears

While news of Modi's poor electoral showing triggered a bond selloff, the market later recovered after cabinet appointments including FM Sitharaman were seen to indicate no change

BoE keeps key interest rate at 16-year high of 5.25% despite inflation fall

The Bank of England on Thursday kept its main interest rate at a 16-year high of 5.25 per cent, even though inflation has fallen to its target of 2 per cent. In a statement, some policymakers on the bank's nine-member Monetary Policy Committee voiced worries that some underlying measures of inflation, such as in the services sector, remain elevated, which could be stoked further if interest rates are cut too soon. The decision, which was widely anticipated by economists, is likely to disappoint the governing Conservative Party ahead of the UK's general election in two weeks time. A cut would have been seized upon by Prime Minister Rishi Sunak as positive economic news.

RBI maintains status quo, raises FY25 GDP growth forecast to 7.2%

Economists see shallow rate cut in Oct-Dec quarter

Last mile journey to 4% inflation target is sticky: RBI Governor Das

Even the high rates of growth are enabling us to catch up with that level. So, no, signs of over- heating. On rate hikes being off the table, nothing is off the table.

Monetary policy review: RBI resolutely on hold amid comfort over growth

India's GDP growth to remain strong, two members of the MPC see the need for monetary policy easing, likely to support growth. How does one reconcile the two?

RBI MPC highlights: Last mile of our journey towards 4% inflation target is sticky, says Governor

RBI MPC Meeting highlights: RBI Monetary Policy Committee (MPC) kept the repo rate unchanged at 6.5% for the eight consecutive time and will continue with its stance of 'withdrawal of accommodation.'

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