'In the past two meetings, the size of the rate increases have come down'
"You don't need to keep on raising nominal rates as long as inflation does not come down because then you will definitely overshoot in terms of real rates," Goyal said
Disinflation can't rely only on food, must be firm in inflation fight, says RBI Das
Bonds allocated at coupon of 8.2% with call option on Feb 2033
Lender announces decision after central bank last week raised the repo rate to 6.50%
The deposit and lending rates are directly proportional to the repo rate, and they generally go up if the benchmark rate is hiked
Policy rate increased by 25 bps to a 4-year high of 6.5%
Analysts are of the view that after delivering the seventh hawkish policy on Wednesday the central bank may pause after delivering a likely 25 basis points increase in the April review. For Abheek Barua, the chief economist at HDFC Bank, the 25 bps repo hike and keeping its withdrawal of accommodation stance unchanged are on expected lines, the policy tone was hawkish as the RBI-MPC has recognised that they are still away from achieving their objective of durable disinflation, which still looks distant as the core inflation continues to remain sticky. Even as headline inflation is likely to moderate over the coming months, core inflation could remain sticky, and if the RBI chooses to continue seeing signs of durable moderation in core inflation as a yardstick for policy tightening, another 25 bps rate hike in April is likely. But we see a change in stance to neutral is unlikely until the RBI pauses its rate hike cycle, Barua said. He said that the more-than-expected hawkish stance w
CLOSING BELL: Adani Enterprises surged 23 per cent, while Adani Ports zoomed 9 per cent, leading the winners' list on the Nifty50
The MPC's optimistic growth outlook for H2 FY2024 augurs well for the credit demand for the banking sector as well as the lenders, said Karthik Srinivasan of Icra
RBI MPC: Shaktikanta Das said that the repo rate hike of 25 bps is considered appropriate at this juncture but the monetary policy will remain agile to inflation
Need to see decisive decline in inflation, core inflation still sticky, says RBI governor
The impact will be short-term, and the boost in budgetary allocations towards infrastructure will keep the demand robust
RBI monetary policy: In December, Das had said that despite consecutive rate hikes, core inflation had continued to remain 'sticky'
Economists at SBI on Monday said they expect the Reserve Bank of India (RBI) to hit the pause button on interest rate hike at its upcoming monetary policy review this week. The central bank's Monetary Policy Committee (MPC), the six-member rate setting panel, is likely to continue with the current 'withdrawal of accommodation' stance, the SBI economists said. RBI Governor Shaktikanta Das-headed MPC started its three-day meeting on Monday and it will announce the decision on Wednesday. "Even though RBI could pause as it allows past rate actions to work with long and variable lags, the RBI could still guide the markets with a rate action in future that will be purely data dependent," the note said. Expecting headline inflation to decline closer to 5 per cent by March 2023 and further to 4.2 per cent in April, the economists said they expect a pause from the RBI at the next policy announcement and the present repo rate of 6.25 per cent will be the terminal rate. With the headline ...
MPC could signal pause in rate hikes going ahead as inflation eases
The dissonance in the data will be a key puzzle for policymakers to resolve as they plot their next interest rate moves
Inflation remains sticky and most G-10 central banks may in any case, continue with rate hikes; given India's resilient growth momentum, the MPC might increase the repo rate one final time
Marginal cost of funds-based lending rate (MCLR) is the minimum interest rate below which a bank cannot lend, except in certain cases
MPC minutes show Das saying that in a tightening cycle, especially in a world of high uncertainty, giving out explicit forward guidance on the future path of monetary policy would be counterproductive