Monetary Policy Committee Meeting

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

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

Inflation remains a concern for the RBI

The meeting was chaired by RBI Governor Shaktikanta Das and attended by all the other five members of the rate setting panel

The increase in lending rate or the repurchase rate (repo) by 50 bps -- the biggest in more than a decade -- to 4.90 per cent comes on the back of a 40 bps hike last month

There are speculations that the central bank may go for at least 35 basis points (bps) hike over and above the 40 bps hike effected last month after an off-cycle MPC meeting

'Growth concerns amid spread of the Omicron variant and relatively benign inflation out-turns provide the RBI with enough room to maintain its growth-supportive monetary policies,' analysts said

Monetary Policy Committee expected to hold rates and continue with an accommodative stance to encourage growth

RBI Monetary policy LIVE updates: MPC voted unanimously to keep rates unchanged, said RBI governor Shaktikanta Das. Stay tuned for all the LIVE updates

RBI Monetary Policy: Here's what to expect from the December meeting

The members of the Reserve Bank of India's fourth bi-monthly monetary policy Committee began their three-day meeting today, and are expected to announce the outcome on Friday

Will RBI MPC hold or cut rates? Your most pressing questions answered

Given inflation pressure, there is no doubt that it would be difficult for the MPC to cut rates in the near-term

The three new members represent a diversity of experience and have engaged with policy making through their careers

The central bank has been taking steps proactively to limit the damage to the economy caused by the pandemic and lockdown

Demand impact will continue to weigh heavily on economic activity for some time, says Shaktikanta Das, but is optimistic about rural economy due to good farm harvest

While efforts are being mounted on a war footing to arrest its spread, Covid-19 would impact economic activity in India directly through domestic lockdown, the central bank has said

Following the November print of 5.54%, RBI had sprung a surprise and opted to hold the repo rate at 5.15 per cent. It, however, continued with the accommodative stance as long as it was necessary.

When expected inflation drops, the policy rate should drop even more

Citing geo-political uncertainties and elevated food prices, the RBI revised inflation projection upward to 3.4 per cent for Q2FY20, while projections were retained at 3.5-3.7 per cent for H2FY20

What is telling is that large swings in the Indian business cycle are still not a thing of the past, despite the adoption of inflation targeting in India

Economists divided on MPC outcome; say it will be a tough decision to make