Incomplete transmissions & inflationary challenges, RBI drops hints for those reading into MPC’s stance
The Reserve Bank of India's Monetary Policy Committee (MPC) has maintained its stance and kept rates unchanged for the sixth consecutive meeting. Despite expectations for a change in policy stance due to easing core inflation and a fiscally prudent interim budget, the MPC opted to continue with the withdrawal of accommodation stance. Economists suggest the RBI may be hinting at delinking its stance with liquidity management. Bond yields initially dipped on expectations of a change in stance Key Points
Economic Times‘First rate cut on table from June’: SBI says RBI MPC to continue policy stance for now
The MPC had also left the policy stance unchanged with focus on withdrawal of accommodation in December. The latest SBI report said that the stance should continue to be withdrawal of accommodation. Key Points
Business TodayRBI MPC Meet: Interest rates expected to hold steady, possible shift to neutral stance amid tight liquidit
RBI MPC Meet: The 12 respondents unanimously predicted that the Monetary Policy Committee (MPC) would keep the repo rate unchanged at 6.50% at the end of its February 8 meeting. They said the panel will maintain the status quo on rates for the sixth consecutive time. The repo rate is the rate at which the RBI lends funds to banks. Key Points
Economic TimesRBI Monetary Policy Committee Meeting from April 3: Check time and what to expect on repo rate
RBI Monetary Policy April: The meeting is scheduled to start at 10 am on Wednesday. The RBI will announce the review of the policy on April 5, i.e. Friday. Key Points
Business TodayWill Sitharaman’s ‘fiscally prudent’ Budget prompt RBI’s MPC to make moves, re-adjust stance?
RBI MPC Meeting: RBI's rate-setting panel, known as the Monetary Policy Committee (MPC), is expected to keep the repo rate unchanged at 6.5 percent. Economists predict that there may be a change in stance from 'withdrawal of accommodation' to 'neutral'. According to an ET Poll of 12 economists, significant rate adjustments are not expected. However, some economists suggest that a fiscally prudent budget and global monetary easing could influence the central bank to adjust its stance on liquidity. Key Points
Economic Times
MPC meeting: RBI may hit rate pause button again this week
According to an ET poll with 16 respondents, the six-member rate-setting panel is seen maintaining the benchmark policy repo rate at 6.50% during the June 6-8 meeting, marking the second consecutive instance of it holding off on policy tightening. The respondents were unanimous in their expectation. Key Points
Economic TimesRBI's policy-setting body keeps rates unchanged for 10th straight time, changes stance to 'neutral'
Change in stance signals possibility of rate cuts, potentially as early as December, depending on inflation trends & global economy. Growth projection for FY 2024-25 retained at 7.2%. Key Points
ThePrintRBI Policy: Repo rate left unchanged at 6.50%, but D-Street hit by incremental CRR on banks
While the policy stance was on the expected lines, the RBIs decision to impose an incremental Cash Reserve Ratio (CRR) of 10% of NDTL on banks dampened Dalal Streets mood. The incremental CRR has been imposed for May 19-July 28 period, and the RBI will review the same on September 8, Das said, adding that the move is “purely” a temporary measure. Key Points
Economic TimesRate-setting panel member asks RBI to talk clearly for greater good
Jayanth Rama Varma, a member of the Reserve Bank of Indias monetary policy committee, has criticised the bank's lack of transparency and its confusing stance on policy. Varma has called for the committee to be transparent with the public about its intentions in a clear manner. He claims the bank is still using coded language instead of plain, transparent language. The committee has stated it plans to monitor its withdrawing from its pandemic period accommodation approach in the face of posed inflationary risks from the weather and geopolitical disruptions. Key Points
Economic Times'Highly disappointing': Congress leader on government’s Israel-Hamas war stance
Congress's KC Venugopal today criticised the government's stance on the Israel-Hamas war and termed it "highly disappointing". Venugopal also said India's approach to the conflict used to be different from the very beginning. Key Points
India Today
RBI MPC Meet: Will RBI to keep repo rate unchanged at 6.50%? 5 points to note
The current repo rate is 6.50%, which was last updated on February 8, 2023. Since then the RBI decided to keep the rate unchanged. The last time the repo rate was changed from 6.25% to 6.50% in February 2023. Key Points
Business TodaySurprise Dissent! Who's the new rebel in RBI's monetary policy team?
The RBI appointed three new external members to its monetary policy committee, who influenced the shift to a 'neutral' stance on growth, despite differing views on the 6.5% repo rate. Nagesh Kumar emerged as a new dissenter advocating for a rate cut. Key Points
Economic TimesOne Last Time: Is RBI MPC setting the stage for rate cuts soon?
RBI MPC October Meeting: The Reserve Bank of India shifts to a neutral stance while maintaining the repo rate at 6.5%. Experts anticipate a possible rate cut in December. The focus remains on controlling inflation and supporting growth amidst resilient economic conditions. Key decisions also include updates on GDP, inflation, and financial regulations. Key Points
Economic TimesRBI may shift policy stance to neutral by June: Nomura
The core inflation for December came at 3.8 per cent, the note said, adding that the annualized growth of super-core inflation has dipped below 3 per cent by its estimates which is a positive surprise . For January, the headline inflation is likely to cool-off to about 5 per cent, while the core is pegged at 3.5 per cent. Key Points
Economic TimesRBI monetary policy: Gov Shaktikanta Das expected to hold rates at 6.50%; what experts say
RBI MPC announcements: Governor Shaktikanta Das is expected to retain rates at 6.50 per cent, while maintaining the stance of withdrawal of accommodation. Key Points
Business Today
Why did the RBI shift to neutral? The predictions for the future
The Reserve Bank of India's Monetary Policy Committee has kept the repo rate unchanged at 6.5% but shifted to a neutral stance. This change allows flexibility in tackling inflation while supporting growth. Economists suggest a potential rate cut in the future if inflation risks subside and growth remains resilient, with December 2024 being a likely timeline. Key Points
Economic Times3-4% upside in Nifty very much on the cards in March, says Pankaj Pandey
Pankaj Pandey suggests that Nifty may reach 25,000 with expected election outcomes. Bulls lack energy and market fabric weakened. Opportunities exist in largecaps, midcaps, smallcaps, cement, infra, PSUs, and coal sector. RBI stance change can lift BFSI sector. He also says one important parameter which we feel can change the complexion of the market is the change of stance by RBI. Key Points
Economic TimesInflation readings to remain well above RBI's tolerance band for a couple months: MPC's Jayanth Varma
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) member, Jayanth R Varma, has stated that inflation readings for the next few months are likely to remain above the RBI's tolerance band of 2-6%. Varma warned against declaring victory based on a couple of months' inflation data and expressed discomfort with the self-congratulatory tone of the MPC statement. However, Varma believes there is no need to panic and that the trajectory of inflation over the next few quarters will provide a clearer picture. Key Points
Economic TimesRBI may change policy stance to 'neutral' on easing core inflation: Economists
India's sustained fall in core retail inflation and subdued inflationary pressures could prompt the Reserve Bank of India (RBI) to ease its policy stance to 'neutral' next month. Economists believe a shift in stance is likely based on the inflation outlook, global financial conditions, and liquidity situation. Key Points
Economic TimesRBI MPC meeting: Here's experts' take on repo rate status quo
During the bi-monthly Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) decided unanimously to maintain the repo rate at 6.5%, marking the fifth consecutive time. RBI Governor Shaktikanta Das highlighted the central bank's focus on withdrawing the accommodation stance, considering the moderation of inflationary pressures and robust economic expansion in the first half of the fiscal year. Key Points
Economic Times
IT stocks' rally overdone, says Jefferies; Infosys among 3 top picks
Jefferies has taken a 'Hold' view on Tata Consultancy Services (TCS), HCL Technologies and LTI MIndTree while an 'Underperform' stance on Wipro and Tech Mahindra. Jefferies' estimates on the IT sector hinge upon the takeaways from its conversations with managements of seven domestic IT firms who have acknowledged that the demand uncertainty will linger, going forward. Key Points
Economic TimesRBI may maintain status-quo on interest rate: Experts
The RBI has retained the rate at 6.5 per cent since February when it was raised by 25 basis points from 6.25 per cent. In the previous two policy reviews in April and June, the benchmark rate was retained. Key Points
Business TodayRBI's rate cut timeline may be pushed to FY25: DBS
Our own expectation is that they aren't going to change anything on the rates front for the rest of this fiscal year, said Radhika Rao, economist at DBS in Singapore. Cuts will mostly take place in March 2024, which will be preceded by a change in stance, and a much more cautious commentary on growth. Key Points
Economic Times3 midcap baskets where earnings may grow over 20% in next 3 years: Gautam Duggad
Gautam Duggad, from Motilal Oswal Financial Services, emphasizes stock-specific approach with an eye on earnings growth and a consumer stocks mix. He remains Positive on consumer discretionary, hotels and real estate sectors and cautious on IT stocks.. Duggad further says their preference within the overall underweight stance is still with largecaps . Key Points
Economic TimesBetween a pause and a pivot: What will RBI MPC do on Oct 6?
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) is expected to keep the repo rate unchanged at 6.5% at its upcoming meeting. The RBI will be in a wait-and-watch mode to assess the impact of previous rate hikes before making any decisions. India's economic growth forecast of 6.3% by the World Bank is slightly lower than the RBI's estimate of 6.5%. Key Points
Economic Times
War against inflation not yet won, says Monetary Policy Committee member
A member of India’s Monetary Policy Committee (MPC), Jayanth R. Varma, has said that it would be premature to declare an end to the tightening cycle and the war against inflation has not yet been won. Varma expressed reservations about the second resolution, stating that he could not put his name to a stance that he did not understand. He emphasized the need for heightened vigilance in the face of fresh risks such as an output cut by OPEC+ and monsoon-related issues. Varma also highlighted that a deficient monsoon could create inflationary pressures that would require counteracting with monetary policy measures Key Points
The HinduRate hikes not fully transmitted, RBI may hold repo in April meet
RBI maintains accommodation withdrawal due to incomplete transmission, focusing on inflation targeting and transmission challenges. Gudwani notes RBI's cautious stance, emphasizing the impact of liquidity conditions on rate transmission pace. Key Points
Economic TimesOn the road to disinflation, the last mile is the hardest
Five out of six committee members on Thursday voted to keep the policy repurchase rate unchanged at 6.5%, and stance unchanged at withdrawal of accommodation. Key Points
mintWhat does RBI’s MPC meet outcome spell for banking and housing loan sectors?
Favourable economic indicators and a steady interest rate environment have the potential to draw investments into the banking sector, fostering additional growth and advancement. With the anticipation of interest rates remaining stable, heightened interest is expected in the housing loan sector. Key Points
mintRBI meet starts today; panel likely to stay put on rates as CPI inflation beyond comfort zone
RBI's MPC is expected to maintain 6.5% repo rate amid inflation above 4%. Shift to 'neutral' stance is possible. GDP growth strong, rate cuts unlikely. Key Points
Economic Times
Is it time to book profits or invest more? Ajay Bagga answers
“SIPs are still coming largely into mid and smallcap funds but institutional players are cautioning that move into largecaps out of mid and smallcaps. As we saw on Monday and Tuesday last week, market returns are very lumpy and a few days will give the entire year's return. So, if you are not invested, you will miss out on that.” Key Points
Economic TimesRBI has food for thought but likely to keep rate pause
The MPC, which will detail its next policy statement at the end of its three-day meeting on December 8, is seen keeping the repo rate unchanged at 6.50% while retaining its stance of withdrawal of accommodation, an ET poll of 10 economists showed. After raising the repo rate by 250 basis points (2.5 percentage points) from May 2022 to February 2023, the committee has maintained a pause on the benchmark rate, which is the rate at which the RBI lends to banks. Key Points
Economic TimesRBI to remain cautious on inflation, keep the repo rate unchanged at 6.5% in December, says Barclays
India's Q3 GDP growth rate of 7.6% surpasses expectations and projections, but RBI is expected to maintain a hawkish stance on repo rate in December. Key Points
mintWho is Jim Jordan, the Trump-backed conservative Republican who wants to be US House Speaker?
The House of Representatives is facing a leadership vacuum as Republicans struggle to elect a new Speaker. After the candidacy of Steve Scalise faltered, attention turned to Jim Jordan, an ally of former President Trump. However, concerns over his perceived ideological extremism have sparked a debate within the party. Jordan, known for his alignment with Trump's agenda, has faced controversies, including his actions during the Capitol riot and his stance on the 2020 election. The selection of the next Speaker will be crucial in uniting the party. Key Points
Economic TimesSensex jumps 300 pts as RBI holds rate at 6.5%, Nifty above 19,600; “withdrawal of accommodation” stance r
The monetary policy action was on the expected lines, and therefore, equities remained steady post the announcement. The Sensex was trading 324 points or 0.49% higher at 65,955.89, while the Nifty was steady above the 19,600 mark.. The Nifty Bank index also was trading 0.3% up at 44338.10 points. Key Points
Economic Times
RBI to retain benchmark rate at 6.5% at ensuing monetary policy review meeting: Experts
Experts predict that the Reserve Bank of India (RBI) will maintain the benchmark interest rate at 6.5% in its upcoming monetary policy review. Factors Key Points
Times Of IndiaRBI may maintain status-quo on interest rate, say experts
The Reserve Bank is likely to maintain status-quo on the key interest rates for the third time in a row in its upcoming bi-monthly policy review despite the US Federal Reserve and the European Central Bank hiking benchmark rates, as domestic inflation is within the RBI's comfort zone, say experts. The borrowing cost which started rising in May last year has stabilised with RBI keeping the repo rate unchanged at 6.5 per cent since February when it was raised from 6.25 per cent. Key Points
Economic TimesBanks to be given ample time to implement ECL model: Shaktikanta Das
The Reserve Bank of India's (RBI) monetary policy committee (MPC) on June 8 voted to keep benchmark repo rate unchanged at 6.50% and retain the focus on the 'withdrawal of accommodation' stance. Key Points
FinancialexpressRBI's second consecutive pause expected, market awaits policy shift
All 40 economists in a Bloomberg survey forecast the Indian central bank will keep the repurchase rate unchanged at 6.50%. Key Points
Hindustan TimesIndia may buy Russian crude past cap if OPEC+ cuts boost costs
The stance underscores the pressing need in the country of 1.4 billion people to curb inflation and spur growth amid a surprise output cut by OPEC+ and western sanctions to rein in Russias oil revenue following the invasion of Ukraine. India, along with China, has emerged as one of the key buyers of Russian crude. It is now Indias top supplier, above Iraq and Saudi Arabia. Key Points
Economic Times