Page 17 - Rbi Repo Rate

RBI expected to pause again with markets watching for shift in stance

India's latest quarterly growth figures exceeded estimates last week, bringing about an expansion of 7.2% for the last fiscal year

RBI's MPC starts deliberations on policy rate, decision on Thursday

The Reserve Bank's rate-setting monetary policy panel began deliberations on Tuesday amid expectations that the central bank will keep the benchmark interest rates unchanged at 6.5 per cent on the back of easing retail inflation and the need to push economic growth. Headed by Reserve Bank Governor Shaktikanta Das, the six-member Monetary Policy Committee (MPC) will meet for three days and the decision would be announced on Thursday, June 8. After the last MPC meeting in April, the RBI paused its rate hike cycle and stayed with the 6.5 per cent repo rate. Prior to that the central bank had cumulatively hiked the repo rate by 250 basis points since May 2022 in a bid to contain inflation. The MPC is meeting in the backdrop of consumer price-based (CPI) inflation declining to an 18-month low of 4.7 per cent in April. The Reserve Bank governor recently indicated that the May print would be lower than the April numbers. The CPI for May is scheduled to be announced on June 12. On ...

Explained: Are rising FD rates ending, and what should investors do?

The withdrawal of the Rs 2,000 note will likely result in a spurt in liquidity. How are the subsequent changes likely to impact you? Read more to find out

War on inflation not over, we have to remain alert: RBI Guv Shaktikanta Das

Das said that India's GDP growth rate in FY23 may come out to be more than earlier predictions of 7%

Expect RBI to start rate cuts by end of FY24: HDFC Bank chief economist

Abheek Barua said that the Indian economy is expected to grow at 4.4% in the quarter ended March 31

Cash crunch pushing up funding costs in India deterring more RBI hikes

The weighted average call rate, an overnight funding cost rate the central bank monitors, was at 6.78% on Wednesday, above the upper band of the Reserve Bank of India's interest rate corridor, of 6.75

RBI expected to pivot to rate cuts by year-end after a long pause

Borrowing costs in India have probably peaked, with the central bank expected to start cutting rates by the end of the year

Indian Overseas Bank raises FD rates; senior citizens to get 7.75% interest

This announcement is in line with the Reserve Bank of India's decision to keep the repo unchanged at 6.5%

Weekend Bites: Pause not pivot, GDP, Doge, and litti-chokha for thought

In which we munch over the week's platter of news and views

TMS Ep406: RBI rate pause, food labelling, markets, Finance Commission

How will the economy fare as RBI pauses rate hikes? Why has food labelling become controversial? RBI policy done, what next for the markets? What is the Finance Commission? Answers here

Bankers welcome surprise pause in hikes, feel RBI now focusing on growth

Bankers welcomed the status quo in rates from RBI on Thursday, calling it as an attempt to support growth. The RBI move on the regulatory front announced along with the first policy review of FY2023-24 also found support from the banker community. Industry lobby Indian Banks Association chairman A K Goel, who is also the chief executive of Punjab National Bank, said it is a welcome pause which could surprise the market. "Focus of RBI in this policy is to support growth as it wants to evaluate the effects of the previous rate actions to fully get transmitted into the economy," he said. SBI chairman Dinesh Khara termed it a "pleasant surprise" given the market talks of one more final rate hike. "With uncertainty looming large, this decision was perfectly timed. Simultaneously, the bouquet of regulatory initiatives like linking UPI to credit and developing the onshore market will spur innovations in product offerings," Khara said. Zarn Daruwala of foreign lender Standard Chartered B

Confident of achieving wheat procurement target of 34.2 mt: Food secretary

With India likely to harvest a record wheat output, the Centre on Thursday said it is confident of achieving wheat procurement target of 34.2 million tonne and will soon take a call on relaxing quality norms for buying in Punjab and Haryana in view of crop damage due to untimely rains. Earlier in the day while announcing the bi-monthly monetary policy, Reserve Bank Governor Shaktikanta Das said the expectation of a record rabi harvest bodes well for easing of food price pressure. "There is already evidence of a correction in wheat prices in March on supply side interventions by the government. The impact of the recent unseasonal rains in some parts of the country, however, needs to be watched," the Governor said. Addressing a press conference, Union Food Secretary Sanjeev Chopra said the government is hopeful of a record wheat output of 112.2 million tonne in 2022-23 crop year ending June, despite inclement weather conditions in some parts of the country affecting grain quality. Th

RBI's decision of not changing repo rate in line with expectations: Experts

The Reserve Bank of India's decision to keep key benchmark policy rate at 6.5 per cent is in line with expectations of the market, experts said on Thursday. The repo rate hike has been paused after six consecutive rate increases aggregating to 250 basis points since May 2022. Bandhan Bank Chief Economist Siddhartha Sanyal said, "RBI's pause on the repo rate is completely in line with our expectations." In fact, "the 6-0 voting in favour of a pause reflects that," he said. The six-member Monetary Policy Committee comprises three RBI officials and three external members appointed by the central government. With the likely softening of Consumer Price Index to low-to-mid five levels in the coming months, the real policy rate will hover around one per cent during the 2023-24 financial year, he said. Retail inflation in February stood at 6.44 per cent as compared to 6.52 per cent in the previous month. MPC takes into account retail inflation numbers for setting the interest rates. How

India Inc cheers RBI stance to hold interest rate, terms it 'prudent' move

India Inc cheered the Reserve Bank's stance to hold key interest rate on Thursday terming it a "prudent" move in the wake of headwinds emanating from global banking stress and said the move will improve business sentiments by containing the rise in borrowing costs. Industry bodies cautioned that any further hike in the benchmark repo rate at this juncture would have affected India's economic growth even as domestic demand impulses remain healthy. Sanjiv Bajaj, President, CII said the industry body agrees with the central bank's observation that the lagged impact of the past rate hikes should be allowed to percolate into the system, and not stifle demand by further rate hikes. Though the domestic demand impulses remain healthy, headwinds from the global banking stress have gained pace, hence it was important for the central bank to remain cautious in its stance. This move by RBI will help bolster business sentiments by containing the rise in borrowing costs which have constricted th

Sensex up 144pts, Nifty nears 17,600 as RBI pauses hike; realty stocks jump

CLOSING BELL: Shaktikanta Das said the move was only "a pause and not a pivot"

Rupee falls below 82 against US dollar after RBI hits pause on rate hikes

The rupee declined to an intraday low of at 82.06 per U.S. dollar versus 81.88 before the RBI policy announcement

MPC lowers projection for inflation, raises growth outlook a bit in FY24

Volatility in global financial market has potential upsides for imported inflation, says committee

LIVE: We will work towards inflation target of 4%, says RBI Governor

Catch all the updates of the live address by Reserve Bank of India's Governor Shaktikanta Das on the decision by the Monetary Policy Committee on repo rate

As RBI keeps repo rate unchanged, here's a timeline of it since June 2000

The standing deposit facility rate and the marginal standing facility rate also remained unchanged

SBI, DLF: Trading strategies for rate sensitive stocks post RBI policy

An unchanged repo rate may propel rate sensitive stocks to rise up to 15 per cent