Page 7 - Monetary Policy

Monetary policy: RBI unlikely to cut interest rate on June 7, say experts

Reserve Bank of India (RBI) is unlikely to cut the benchmark interest rate at its upcoming monetary policy review meeting, taking place soon after the announcement of the Lok Sabha election results, amid inflation challenges, said experts. The Monetary Policy Committee (MPC) may also refrain from rate cut as economic growth is picking up, notwithstanding the elevated interest rate of 6.5 per cent (repo) prevailing since February 2023. The meeting of the Reserve Bank Governor Shaktikanta Das headed MPC is scheduled for June 5 to 7. The decision will be announced on June 7 (Friday). Results of the Lok Sabha elections will be announced on June 4. The central bank last hiked the repo rate to 6.5 per cent in February 2023 and since then it has held the rate at same level in its previous six bi-monthly policies. If the interest rate remains untouched again on June 7, it would be the eighth time for the RBI to maintain the status quo on the benchmark repo rate. On expectations from the J

Reserve Bank of India cancels 10-year green bond auction for first time

Market refuses to pay greenium; rupee falls to 2-week low on poll jitters

Lost a shock absorber

The economy would be more stable if the exchange rate fluctuated more

RBI launches two key surveys to get inputs for upcoming monetary policy

The Reserve Bank of India (RBI) on Monday announced the launch of 'Inflation Expectations Survey of Households' and 'Consumer Confidence Survey' which will provide key inputs for the bi-monthly monetary policy. The next bi-monthly monetary policy is scheduled during June 5-7, 2024. The 'Inflation Expectations Survey of Households' aims at capturing subjective assessments on price movements and inflation, based on their individual consumption baskets, across 19 cities, including Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, and Thiruvananthapuram, the RBI said in a release. The survey on inflation seeks qualitative responses from households on price changes (general prices as well as prices of specific product groups) in the three months ahead as well as in the one-year ahead period. It also seeks quantitative responses on current, three months ahead and one-year ahead inflation rates. The 'Consumer Confidence Survey' seeks qualitative responses from households, regarding their ..

RBI's monetary policy committee refuses to drop its guard on inflation

"We should stay the course and remain vigilant', says RBI Governor Shaktikanta Das

Powell denies any guidance on rate cuts, hints at 'restriction' instead

Powell's comments further squashed any lingering expectations of the Fed cutting rates in the near term, with markets pricing in September as the new starting point of the easing cycle

The RBI is fighting fit at 90

When RBI demonstrates performance, when it takes on board the concerns of all stakeholders, including the government, the political authority is more than happy to let it get on with its job

RBI launches manufacturing cos survey, a key input for policy formulation

The Reserve Bank has launched the next round of quarterly order books, inventories and capacity utilisation survey of manufacturing companies, a key input for the monetary policy formulation. The 65th round of survey is for the reference period January-March 2024 (Q4:2023-24), the central bank said. The Reserve Bank has been conducting the order books, inventories, and Capacity Utilisation Survey (OBICUS) of the manufacturing sector on a quarterly basis since 2008. The information collected in the survey includes quantitative data on new orders received during the reference quarter, backlog of orders at the beginning of the quarter, and pending orders at the end of the quarter. It also collects data on total inventories with a breakup between ?nished goods (FG), work-in-progress (WiP) and raw material (RM) inventories at the end of the quarter, item-wise production in terms of quantity and value. The level of capacity utilisation (CU) is estimated from these responses. "The surve

Monetary policy: 'Real rates do matter, inflation must align with target'

Reserve Bank of India Governor Shaktikanta Das and Deputy Governor Michael Patra responded to a host of queries in the post-policy interaction with the media. Edited excerpts:

Monetary policy review: RBI rejigs quarterly GDP growth forecasts for FY25

Rural demand catching up, consumption expected to support economic growth in FY25, says RBI governor

Inflation targeting framework is the focus: RBI governor Shaktikanta Das

The RBI projects CPI will be 4.5 per cent for the whole year, and growth will be 7%

RBI MPC FY25: Repo rate kept unchanged at 6.5% for seventh consecutive time

The RBI MPC has also decided to keep its stance of "withdrawal of accommodation" unchanged with a majority of 5-1

First FY25 RBI MPC meeting: When, where to watch RBI governor's speech

RBI monetary policy: The MPC decision will be announced by Shaktikanta Das at 10 am on Friday, followed by a press conference at noon

Services PMI registers strongest growth in 13.5 yrs, rises to 61.2 in Mar

In the Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction

'No change in RBI's stance on underlying exposure to forex derivatives'

The RBI had said in January that effective April 5, exchanges may offer forex derivative contracts involving the rupee to users "for the purpose of hedging contracted exposure"

Best of BS Opinion: Monetary policy path, containing disinformation & more

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

Inflation still high and focus on minimising risk, says RBI report

Indicates 'significant per capita income shifts' underway

Let's get real about rates

Given myriad cross currents across inflation, growth and financial stability, monetary policy in 2024 will have to cross the river by feeling the stones

Fitch upgrades Turkey's sovereign rating to B+ on tighter monetary policies

"Upgrade reflects increased confidence in the durability and effectiveness of policies implemented since the pivot in June 2023," Fitch said

Battle for short term money likely to turn more intense in March

Mobilisation of funds via certificates of deposit increased 3x in February