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.'
RBI MPC Meeting Live Updates: RBI's MPC which began on February 6 has concluded today. The Central bank's MPC has decided to keep the repo rate unchanged at 6.5%. Catch all updates here
The MPC, which has three members from the central bank and three external members, kept the repo rate unchanged at 6.50% in an unanimous decision
Meanwhile, government bond yields inched up slightly, tracking a rise in US Treasury yields
External members, however, point out high real rate, minutes show
The continuing global uncertainity has complicated the fight against inflation, opined Reserve Bank Deputy Governor Michael Debabrata Patra during the Monetary Policy Committee meeting held on February 8. According to the minutes of the MPC meeting released on Wednesday, RBI Governor Shaktikanta Das also mentioned that there is considerable uncertainty due to a host of global factors such as rising non-oil commodity prices. The RBI on February 8 hiked the key short-term lending rate by 25 basis points to 6.5 per cent, citing sticky core inflation. It was the sixth interest rate hike by the Reserve Bank of India (RBI) since May last year, taking the total quantum of increase to 250 basis points. "The fight against inflation is complicated by the global outlook. There is some consensus growing around a milder slowdown than earlier feared, although geographical disparities complicate the prognosis. Be that as it may, the outlook for global inflation is turning more uncertain than ...
While two of the eminent panelists - Ghosh and Nayar - said they expect a pause in the monetary cycle by the MPC, Chakraborty, Sagar, and Kapoor said the MPC could still hike by 25-50 basis points
Governor Das said due to persistent core inflation, there is no room for complacency and the battle against inflation is not over
MPC minutes show Das saying that in a tightening cycle, especially in a world of high uncertainty, giving out explicit forward guidance on the future path of monetary policy would be counterproductive
1-year bond yield logs the sharpest fall in two-and-a-half months
The next review of the monetary policy committee is scheduled on December 5-7
The MPC is of the view that further calibrated monetary policy action is warranted to keep inflation expectations anchored
According to the July Bulletin article, the current level of reserves were equivalent to 9.5 months of imports projected for 2022-23
Either inflation has to come down on its own or we will have to raise the rate, or it will be a combination of the two, says MPC member Varma
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CPI inflation was 7.04% in May. In its June policy review, the MPC raised repo rate by 50 bps to 4.9%, taking the total tally of rate hikes since May to 90 bps
'The markets should not assume we will guide them, because the data is coming without warning', said Varma
Policy making has to be nuanced and nimble, says RBI governor Shaktikanta Das
The six-member MPC voted to keep the policy rate unchanged and continued with the accommodative stance at its meeting on February 10
'Need to remain vigilant to incipient cost-push pressures to inflation as well as to uncertainty imparted by Omicron. Its implication for inflation, going forward, are two-fold,' says Shaktikanta Das