Page 9 - Monetary Policy

Run-up to MPC meeting: 'Time not ripe to signal monetary policy reversal'

Domestically, growth, especially in non-agricultural segments, is holding firm amid improved macro-financial stability

Macro balancing act in 2024

The imperatives for 2024 are more nuanced: Nurturing recovery while ensuring public debt is stabilised and financial exuberance contained

China cuts reserve requirements for bank to help boost its slowing economy

China's central bank said Wednesday it will cut the ratio of reserves banks must hold to help boost the slowing economy. The announcement by the People's Bank of China prompted a surge in share prices in Chinese markets, with Hong Kong's benchmark jumping 3.6%. Central bank Gov. Pan Gongsheng said the deposit reserve requirement would be cut by 0.5% as of Feb. 5. Pan said that would inject about 1 trillion yuan ($141 billion) into the economy. He told reporters in Beijing that the central bank also soon plans to issue a policy on lending to property developers to help support the industry.

Food inflation can potentially impact headline: RBI monthly bulletin

Widely regarded as transient, these shocks appear to have imparted volatility and persistence to food inflation which averaged 6.7 per cent during April 2022 to November 2023, it said

Monetary policy has to remain actively disinflationary: Shaktikanta Das

Das said he expects January inflation to moderate and the trend has been moderating but unless inflation reaches 4 per cent on a durable basis

RBI may shift policy stance to neutral by Jun, cut rates by Aug: Nomura

The Reserve Bank may shift the monetary policy stance to "neutral" by June and deliver rate cuts starting August this year, a Japanese brokerage said on Monday. Pointing out to softer core inflation 'or price rise in items excluding food and fuel' in the data released for December, Nomura said there is a need for the policy to pivot towards an easier regime after the extended pause. The brokerage reiterated its earlier view of rate cuts being expected from August onwards, and pegged the quantum of cuts at 1 percentage point. "We expect 1 per cent of rate cuts cumulatively starting August, with a change of stance to 'neutral' in Q2, with risks skewed towards earlier easing," its analysts said. The core inflation for December came at 3.8 per cent, the note said, adding that the annualized growth of super-core inflation has dipped below 3 per cent by its estimates which is a "positive surprise". For January, the headline inflation is likely to cool-off to about 5 per cent, while the

Expanding RBI's toolkit

Machine learning can improve inflation forecasting

Picture of resilience: RBI raises GDP growth forecast to 7% for FY24

MPC holds repo rate at 6.5% but maintains tight stance as inflation remains a concern

Monetary policy review: Reversal of SDF, MSF on weekends from Dec 30

Market analysts said that the RBI's persistent focus on addressing the uneven distribution of liquidity in the banking system led them to the adoption of measure

RBI to establish cloud facility for financial sector to secure data privacy

Focusing on digital banking, the RBI announced a regulatory framework for web-aggregation of loan products and proposed the establishment of a fintech repository by April 2024

RBI MPC: Repo rate kept unchanged at 6.5%, FY24 GDP estimate hiked to 7%

RBI MPC: Reserve Bank's Monetary Policy Committee decides to keep the repo rate unchanged at 6.5% and also keeps the FY24 inflation forecast unchanged at 5.4%

RBI monetary policy announcement: When, where to watch and what to expect?

RBI MPC meeting: The meeting of the six-member committee started on December 6 in Mumbai and will end with the announcement of Governor Shaktikanta Das on December 8

Moody's issues negative outlook for banks with tightening monetary policies

Central banks' restrictive monetary measures may impact GDP growth and amplify challenges for global banks in 2024, warns Moody's

MPC likely to hold repo rate for fifth time in a row, shows BS poll

Likely to revise FY24 growth forecast upward

Fed to move 'carefully' on rates, 'soft landing' taking shape: Powell

Powell and Fed Governor Lisa Cook, who earned her bachelor's degree at Spelman College, were scheduled to participate in a roundtable discussion with local entrepreneurs later on Friday

Songs, cricket metaphors: RBI governor's way of conveying complex issues

Das has often cited the example of Arjuna's eye to communicate that the central bank is completely focused on bringing down inflation

Global woes pull net foreign direct investment down 77% in H1, shows data

The moderation in flows was majorly witnessed in communication services, retail and wholesale trade, and manufacturing sectors

Monetary Transmission via NBFCs strong but impact delays: RBI CAFRAL report

NBFCs tend to mute monetary transmission in the short run but amplify it in the long run

Transparent policy anchored inflation expectations in Covid times: BIS

Further, exchange rate intervention also helped anchor expectations and facilitated the overarching objective of maintaining macroeconomic stability and market confidence

RBI Governor Shaktikanta Das cautions against large supply shocks

External member Goyal says increase risk weight, LTV rather interest rates to restrain over-enthusiasm