The move also signals the government's endorsement of the policies pursued by the central bank
The five-year onshore overnight indexed swap, a tool to trade rate expectations, has advanced 31 basis points in October
Goswami says case for normalisation of monetary conditions is starting to pick up pace, and next step will be to narrow the policy rate corridor closer to pre-pandemic level
India is witnessing a very robust economic recovery, but there is still unevenness across sectors, RBI Governor Shaktikanta Das said
The RBI's monetary policy report has pegged GDP growth at 7.8% for FY23, assuming normal monsoon and full Covid vaccination. Let's take a look at the 10 most important takeaways from the report
Higher liquidity is not helping the real economy
Of this, the unconventional liquidity measures amount to approx. Rs 9.1 trillion, implying the residual Rs 8.1 trillion is mostly conventional liquidity injection
The RBI stopped the Government Securities Acquisition Programme (G-SAP), through which it has infused Rs 2.2 trillion of liquidity in the system
'We have flagged the issue of fuel (taxes). Now, it is for the government to make a decision'
Rate-sensitive banking and realty indices ended in the red, but auto closed with gains
Survey shows inflation to soften further
RBI Governor's statement says, this process will be gradual, calibrated, and non-disruptive, while remaining supportive of the economic recovery
Retains accommodative stance, FY22 growth forecast; lowers inflation projection
The RBI has calendarized its VRRR auction and stands ready to enhance its duration. This is the first sign of preparing the market for an eventual increase in the reverse repo rate.
RBI Monetary policy highlights: RBI announcement comes against the backdrop of Covid-19 infections receding in recent days and the economy stablising. Stay tuned for all the LIVE updates
Repo rate and the reverse repo rate remain unchanged at 4% and 3.35%
There will not be any shock to the market, with the calendar being drawn out.
RBI bought 2.2 trillion rupees of bonds through Government Securities Acquisition Programme, or GSAP, in previous two quarters.
The monetary policy committee's commentary on inflation, growth and bonds is of much interest to the market.
A delay by RBI could increase risks