The next policy in February will be come post the Budget announcement. It will be crucial as the state of the economy will be clear as will the action taken by the government to counter Omicron impact
The current differential or spread is nearly three times the average spread in the last 10 years.
The broader indices also surged over a per cent each, and gainers outnumbered losers in 2.5:1 ratio
If Omicron becomes a major issue, risks to India's inflation will likely rise further
The RBI stopped the Government Securities Acquisition Programme (G-SAP), through which it has infused Rs 2.2 trillion of liquidity in the system
RBI Governor's statement says, this process will be gradual, calibrated, and non-disruptive, while remaining supportive of the economic recovery
The central bank also retained the GDP growth forecast at 9.5% for the on-going fiscal year and revised CPI inflation projection downward to 5.3% which also supported sentiment
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's key lending rate or the repo rate was held steady at 4% while the reverse repo rate or the borrowing rate also stayed unchanged at 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 Reserve Bank is likely to leave the key interest rates unchanged at its fourth bi-monthly policy review, according to HDFC Bank Chief Economist Abheek Barua
While the share of oil in India's import basket is as much as 22.5% currently, a falling rupee could fuel inflation and take the steam out of low interest rates
Analysts keen to see if more members of the six-strong monetary policy committee call for changing the stance to neutral: like Jayanth Varma did in August.
Central bank is risking making inflation entrenched with its easy money policy, says dissenting member of Monetary Policy Committee.
RBI extended the on-tap targeted long term repo operations (TLTRO) scheme till December 31
Overall RBI monetary policy was on expected lines and the policy statement highlighted its commitment to do whatever it takes to ensure financial stability
Live updates: Monetary policy committee's decisions being read out by RBI governor Shaktikanta Das
An accommodative stance on monetary policy (unchanged since June'19), in the face of an unfavourable growth-inflation trade-off is understandable for now
Here are the best of Business Standard's opinion pieces for Saturday