Page 38 - Rbi Policy

Share of foreign currency assets in overseas securities rises to 81%

RBI's gold reserves rise to 794.64 tonne at the end of March

India's services exports rise record 27% in FY23, shows RBI data

Services imports grow 22%; surplus at $142 bn: RBI data

AU Small Finance tumbles 5% in 4 sessions; what should investors do?

Last week, reports claimed that the Reserve Bank of India has raised concerns about the rapid rise in advances at AU Small Finance Bank

RBI paper sees enough signs of firming up disinflationary trends

Defending the surprise unanimous pause in the April policy after a steep 250 bps hikes in six consecutive steps since May 2022, an RBI paper sees "enough early signs of disinflation firming up into a central tendency" -- meaning going forward, more monetary policy actions may not be warranted. According to a paper by Michael Debabrata Patra -- the deputy governor heading the monetary policy department and also a member of the MPC -- and his department colleagues Joice John and Asish Thomas George, persistence and inflationary trends are on the decline, suggesting that inflation expectations are slowly getting re-anchored as policy actions and stance are gaining traction and have started showing demand restraining influences. Blaming the high inflation of the recent past, especially in the first half of the past fiscal, to the succession of supply shocks first arising from the pandemic and then the Russian invasion of Ukraine in late February 2022, the paper, which is the opinion of .

Monetary policy is at work, substantial disinflation achieved: RBI Bulletin

Monetary policy is at work. Substantial disinflation has been achieved, but the road to be travelled stretches ahead till inflation declines to the target of 4 per cent, said an article published in RBI's latest Bulletin. The government has mandated the Reserve Bank of India (RBI) to ensure retail inflation based on the Consumer Price Index (CPI) remains at 4 per cent with a margin of 2 per cent on either side. Inflation during January-February 2023 exceeded the upper tolerance limit of 6 per cent after a transitory respite during November-December 2022. The central bank, which effected six back-to-back hikes in the key short-term lending rate (repo) since May 2022 to check high inflation, decided to pause early this month. The cumulative rate hike since May 2022 is 250 basis points. The retail inflation in March fell to a 15-month low of 5.66 per cent and came back to the Reserve Bank's comfort level of 6 per cent. The article authored by a team led by RBI Deputy Governor Michael

RBI cautions banks on unsecured lending amid rising interest rates

The RBI, according to bankers, is concerned that the sharp rise in interest rates could trigger defaults and pose more risk. The RBI did not reply to an email requesting comment

Minutes of April MPC meeting: Members split on economic growth prospects

All the members unanimously agreed to keep the repo rate unchanged at 6.5% in the April review. Between May 2022 and February 2023, the policy repo rate was increased by 250 bps

Reserve Bank of India proposes threshold for penal charges on loans

Individual fine amounts cannot be higher than non-individual borrowers

Bitcoin climbs to 10-month high of $30,000 as rate hike worries ease

For the past three weeks, Bitcoin was stuck in the range of $26,500 and $29,400

RBI announces guidelines to accept green deposits by banks, NBFCs

The central bank has identified nine sectors in which the proceeds from these green bonds must be used. They include renewable energy and green transport

Realty stocks soar on back of robust sales; sectoral index up 7.8%

The strong numbers boosted hopes of a boom in housing. Analysts said the realty companies had benefited from inflation as it led to a rise in asset prices

RBI estimate too optimistic, will pivot to rate cuts in October: Nomura

Japanese brokerage Nomura on Friday said Reserve Bank's 6.5 per cent real GDP growth estimate for FY24 is too optimistic, and the central bank will pivot to rate cuts from October. The brokerage said it agrees with the Reserve Bank's projections on price rise, and said that the worst of headline inflation is behind us. "However, the revised GDP growth forecast of 6.5 per cent in FY24 appears too optimistic, the brokerage said, adding that it estimates growth to slow down to 5.3 per cent. A slew of agencies and analysts has cut the FY24 growth forecasts in the recent past, with many of them pegging it under 6 per cent as well. Nomura said it expects a downside of over 1 percentage point to the RBI's growth estimate on weaker global growth, high uncertainty and the lagged effects of domestic policy tightening. The RBI had attributed the upward revision in growth to a dip in crude oil prices to USD 85 per barrel as against USD 90 per barrel. After announcing the policy, Governor ...

It's just a pause, not a pivot, says Shaktikanta Das on RBI's status quo

Lowers inflation forecast, ups growth projection; bond prices, Rate sensitive stocks rally

Reserve Bank of India goes for a hawkish pause

The RBI has paused because it wants to evaluate the cumulative impact of the past rate hikes

A prudent comma, not a myopic full stop!

The RBI has not used the word stickiness in its policy statement while characterising core inflation, but instead used "unyielding core inflation"

Necessary to assess cumulative impact of action taken so far: RBI

"It is now necessary to assess the cumulative impact of our action taken so far"

RBI monetary policy review: What led to the interest rate pause?

Real GDP growth for FY23 is expected at 7%, indicating resilient economic activity

Monetary policy: Bond yields soften after RBI hits pause on rate hike

The 10 year g-sec yield is expected to be at 7.0 per cent as against 7.21 per cent currently by end March 2024

Street sees no major surprise in RBI's interest rate pause decision

Realty stocks could see more gains while banking and NBFCs may witness a relief rally

An unexpected pause

Inflation remains significantly above the target