Page 2 - Policy Rates

Economy resilient, but sensitive to global headwinds, says RBI article

With headline inflation beginning to show signs of easing, the domestic macroeconomic outlook appears to be resilient though it is still sensitive to global headwinds, an RBI article said on Friday. The article published in the latest RBI bulletin also said the outlook for the global economy remains clouded with downside risks. Global financial conditions have been tightening and deteriorating market liquidity is amplifying financial price movements. Markets are now pricing in moderate increases in policy rates and risk-on appetite has returned. In India, supply responses in the economy are gaining strength, it noted. "With headline inflation beginning to show signs of easing, the domestic macroeconomic outlook can best be characterised as resilient but sensitive to formidable global headwinds," the article said. Urban demand appears robust, while rural demand is muted but more recently picking up traction, it added. The article has been prepared by a team led by RBI Deputy Govern

A healthy debate: The case for and against interest rate hike

Having raised policy rates to about 6 per cent, does India's Monetary Policy Committee need to do more? And, if so, is more front-loading warranted?

ECB raises interest rates by 75 basis points to fight record inflation

With this, it has increased policy rate by 1.5 per cent, the highest in a decade

India's policy hawk sees end of aggressive hikes amid growth fears

India's most hawkish rate-setter said the policy rate was reaching a level that allows past aggressive action to cool inflation without inflicting too much pain on the economy

US Fed's pyrrhic victory over inflation after policy rate hiked by 75 bps

Powell cannot afford to take his eyes off the prize - to get inflation down

Rising interest rates won't impact housing demand: HDFC chairman Parekh

A home loan is for a long tenor and during this period there are bound to be both upward and downward interest rate cycles, he said

Benchmark indices decline for fourth day as RBI hikes policy rate by 50 bps

The Sensex closed at 54,892, with a decline of 215 points, or 0.4 per cent, and the Nifty finished at 16,356, with a drop of 60 points, or 0.3 per cent

Pakistan central bank hikes main policy rate by 150 bps to 13.75%

The country is going through economic turmoil, including high inflation, reserves declining to as low as less than two months' of imports and a fast-weakening currency

RBI's MPC likely to leave policy rates unchanged till April: Report

The key repo rate has been at 4 per cent since May 2020, an all-time low, even though bond yields have been heading north for many months now

RBI may again opt for status quo on key policy rate next week, say experts

Amid rising global commodity prices and the need to contain inflation at home, RBI is likely to maintain status quo on interest rates for the eighth time in row, according to experts

Winding down liquidity to be challenge for RBI going forward: Subbarao

Ex-RBI governor says road map for fiscal consolidation starting 2022 would be prudent. Though expansionary fiscal policy is a pressing need, govt spend on health and education would benefit economy

RBI leans towards economic growth, keeps policy rates unchanged at 4%

The rate pause was on expected lines, and all the six members on the Monetary Policy Committee were unanimous on the matter

RBI likely to keep policy rates unchanged, liquidity stance awaited

The overnight call money rate has fallen below the reverse repo rate on days on account of the excess liquidity in the banking system

Bank of Japan keeps policy steady, to pump $1 trn to combat health crisis

As widely expected, the central bank maintained its pledge to guide short-term interest rates at -0.1% and the 10-year government bond yield around 0% by a 8-1 vote

RBI has made life a bit easier for NBFCs, MFIs amid Covid-19 pandemic

The RBI has indicated that it expects inflation to come down by September, which means that more rate cuts are in the offing

RBI measures sufficient, not substantial; Guv doing balancing act: Experts

RBI governor is walking a tightrope, says a former chief statistician

US Fed cut may prompt China to lower its policy rate in 4 years: Report

While Chinese officials continue to downplay the likelihood of more aggressive easing, the economy has been slow to respond to a host of earlier stimulus measures

MPC meet headed by Urjit Patel begins; RBI may hold policy rate

India Inc is pitching for a rate cut to boost GDP growth that fell to 7.1% in FY17 from 8% in FY16

Inflation risks force RBI to keep rates on hold

Rajan warns of potential dollar shortage in Sept but prepared to provide liquidity

Raghuram Rajan says room to cut rates on lower inflation, good monsoon

In an interview with The Wall Street Journal, Rajan hinted at the prospect of another cut if inflation trends stay benign