The MPC delivered a larger-than-expected 50-bp rate cut in June to bolster economic growth as inflation remained below target
The Reserve Bank of India's rate-setting panel delivered a 50 basis points interest rate cut earlier this month and announced liquidity measures for the banking system
Clearly, it is not for the RBI and its monetary policy committee (MPC) to fix any of these deep structural issues and magically create growth
Bond yields swung sharply after RBI's 50 bps rate cut, neutral stance, and CRR changes surprised investors, marking the most volatile day in nearly three years
At this point in time, the balance between growth and inflation is clearly tilted towards the need to support growth. RBI's forecast for FY26 growth is 6.5 per cent, Bhattacharya said
The Reserve Bank on Tuesday launched three key surveys, including inflation expectations, to gather useful inputs for monetary policy decisions. The RBI normally holds six bi-monthly monetary policy reviews in a financial year. The last meeting was held earlier this month, and the next meeting of the Monetary Policy Committee is scheduled for June 4-6. The May round of the Inflation Expectations Survey of Households (IESH) aims at capturing subjective assessments on price movements and inflation, based on their individual consumption baskets, across 19 cities. The central bank said the Urban Consumer Confidence Survey (UCCS) seeks qualitative responses from households, regarding their sentiments on the general economic situation, employment scenario, price level, and households' income and spending. This study, too, will be carried out in 19 cities. The Rural Consumer Confidence Survey (RCCS) will collect current perceptions and one-year-ahead expectations of households on general
RBI Governor Sanjay Malhotra's statement explains what an accommodative monetary policy stance means it is geared towards stimulating the economy through softer interest rates
An 'accommodative' stance effectively means that, absent any further shocks, the MPC is considering only two options - rate cut or a pause
RBI's MPC begins 3-day meet from April 7; decision on repo rate to be announced April 9. Markets expect 25 bps cut amid easing inflation, global concerns
The Economic Survey has projected economic growth at 6.3-6.8 per cent for FY26 against 6.5 per cent for FY25, as pegged by the second advance estimates
The challenge for the MPC is to gauge how this heightened level of uncertainty will affect growth and inflation dynamics in India, which will form the basis of its policy decision
Also, focus will be on liquidity-related measures to boost transmission of policy rates to bank lending and deposit rates
Members said it was MPC's turn to do its bit after Budget booster
FIT more effective than multiple indicators framework
Reserve Bank Governor Sanjay Malhotra opined that rate reduction was an appropriate monetary policy response at this juncture citing movement of inflation towards the central bank's 4 per cent target, said the MPC meeting minutes released on Friday. Malhotra, along with five other members of the Monetary Policy Committee (MPC) had voted for a 25 basis points reduction in the short-term lending rate (repo) to 6.25 per cent. The RBI at its meeting held from February 5 to 7 effected the rate cut after a gap of five years. "Given the macroeconomic outlook when inflation is expected to align with the target, and recognising that monetary policy is forward-looking, I view a lower policy rate to be more appropriate at the current juncture," Malhotra said, according to the minutes. Chairing his first MPC meeting, he had also pointed out that rising uncertainties on global financial markets and trade policy front, coupled with continuing risk of adverse weather events pose risks to the ...
The RBI on Friday said non-bank brokers registered with market-regulator Sebi can directly access NDS-OM, an electronic trading platform for secondary market transactions in government securities, on behalf of their clients. Access to Negotiated Dealing System Order Matching (NDS-OM), at present is available to regulated entities and to the clients of banks and standalone primary dealers. "With a view to widening access, it has been decided that non-bank brokers registered with SEBI can directly access NDS-OM, on behalf of their clients," the Reserve Bank of India (RBI) said. Sebi registered brokers may access NDS-OM subject to the regulations and conditions laid down by the Reserve Bank in this regard. Meanwhile, the RBI announced the setting up of a nine-member working group on 'Comprehensive review of trading and settlement timings of markets regulated by the Reserve Bank'. The panel, headed by RBI Executive Director Radha Shyam Ratho, will undertake a comprehensive review of
Given the current economic landscape, moderating inflation, and sluggish growth, another 25-50 bps rate cut within this calendar year remains a strong possibility
Consultative process in making regulations will continue: Sanjay Malhotra