Monetary Policy Committee

Inflation remains significantly above the target

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

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

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

After six consecutive hikes aggregating 250 bps, RBI hits a pause

RBI repo rate: The MPC decision to hit the pause is for this policy cycle only, says RBI governor Shaktikanta Das

RBI Monetary Policy decision: The speech can be watched on RBI's YouTube channel. It will be broadcast on PIB's YouTube channel as well

RBI MPC: If the RBI announces another rate hike tomorrow, it will take the repo rate to the highest level since April 2016, when it was 6.75 per cent

One feels that arguments in favour of a pause in April are strong

RBI will need to do more to contain inflation

If RBI goes for a hike, it could change the stance from withdrawal of accommodation to neutral, signalling end of cycle. If not, the stance can remain unchanged as tight liquidity will serve purpose

Current dynamics warrant hike, but central bank should keep liquidity stance flexible

Many believe that the committee may go for another 25 basis point hike in repo at the April policy

Inflation is expected to come down over the year, RBI Monetary Policy Committee (MPC) member Ashima Goyal said on Sunday, asserting that the government's supply-side action coordinated with a flexible inflation-targeting regime has kept the rate of price rise lower than that in other countries. Goyal said that India has successfully dealt with 'pluri-shocks' over the past three years, showing considerable resilience. "Inflation rates are expected to come down over the year. "Government supply-side action coordinated with a flexible inflation targeting regime has kept Indian inflation rates lower than other countries and our own past averages even in this period of major adverse external supply shocks," she told PTI in a telephonic interview. She was asked whether high inflation become the norm in India. "Since nominal policy rates rise with inflation to maintain an expected real positive rate under inflation targeting this prevents demand over-heating and anchors inflation ...

"High core inflation also points to the cost-price nexus in the economy more sharply," Bhide said, adding that stabilizing core prices was necessary for manufacturing firms to expand their capacities

India's economic growth appears to be 'very fragile' and it may fall short of what the country needs to meet the aspirations of its growing workforce, RBI Monetary Policy Committee (MPC) member Jayanth R Varma said on Sunday. In India, Varma said he expects inflation to remain high in 2022-23 but come down significantly in 2023-24. "However, growth appears to be very fragile, and monetary tightening is compressing demand," he told PTI. Explaining further, he said rising EMI payments increases the pressure on household budgets and dampens spending, and exports are struggling in the face of global factors. While noting that high interest rates make private capital investment more difficult, Varma said the government is in fiscal consolidation mode, thus reducing the support to the economy from this source. "Because of all these factors, I fear that growth may fall short of what we need to meet the aspirations of our growing workforce given our demographic context and income level,"

Continuing to raise nominal repo rates until core inflation falls could imply an overshooting or excess tightening of real rates, says the MPC member in an interview with Business Standard

'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

Says GDP growth will receive 15 bps boost from tax cuts