RBI Policy

Run-up to monetary policy review: Expected pause, surprise on stance?

The latest gains come on the back of robust sales posted by realty developers for the three-month period ending March (Q4FY23)

Inflation remains significantly above the target

Japanese brokerage Nomura on Friday said Reserve Bank's 6.5 per cent real GDP growth estimate for FY24 is too optimistic, and the central bank will pivot to rate cuts from October. The brokerage said it agrees with the Reserve Bank's projections on price rise, and said that the worst of headline inflation is behind us. "However, the revised GDP growth forecast of 6.5 per cent in FY24 appears too optimistic, the brokerage said, adding that it estimates growth to slow down to 5.3 per cent. A slew of agencies and analysts has cut the FY24 growth forecasts in the recent past, with many of them pegging it under 6 per cent as well. Nomura said it expects a downside of over 1 percentage point to the RBI's growth estimate on weaker global growth, high uncertainty and the lagged effects of domestic policy tightening. The RBI had attributed the upward revision in growth to a dip in crude oil prices to USD 85 per barrel as against USD 90 per barrel. After announcing the policy, Governor ...

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

The RBI has not used the word stickiness in its policy statement while characterising core inflation, but instead used "unyielding core inflation"

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

Real GDP growth for FY23 is expected at 7%, indicating resilient economic activity

The 10 year g-sec yield is expected to be at 7.0 per cent as against 7.21 per cent currently by end March 2024

Realty stocks could see more gains while banking and NBFCs may witness a relief rally

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

UPI is an instant real-time payments system that allows users to transfer money across multiple banks without disclosing bank account details

India Inc cheered the Reserve Bank's stance to hold key interest rate on Thursday terming it a "prudent" move in the wake of headwinds emanating from global banking stress and said the move will improve business sentiments by containing the rise in borrowing costs. Industry bodies cautioned that any further hike in the benchmark repo rate at this juncture would have affected India's economic growth even as domestic demand impulses remain healthy. Sanjiv Bajaj, President, CII said the industry body agrees with the central bank's observation that the lagged impact of the past rate hikes should be allowed to percolate into the system, and not stifle demand by further rate hikes. Though the domestic demand impulses remain healthy, headwinds from the global banking stress have gained pace, hence it was important for the central bank to remain cautious in its stance. This move by RBI will help bolster business sentiments by containing the rise in borrowing costs which have constricted th

CLOSING BELL: Shaktikanta Das said the move was only "a pause and not a pivot"

The central bank's surprise decision to hold its key repo rate steady, at 6.5 per cent

Catch all the updates of the live address by Reserve Bank of India's Governor Shaktikanta Das on the decision by the Monetary Policy Committee on repo rate

SBI, Indian Bank, UCO Bank, Bank of Maharashtra, Punjab & Sind Bank, Canara Bank and Punjab National Bank from the PSU banks were up in the range of 1 - 3 per cent.

Policy decisions this week from some of the Reserve Bank of India's global peers offer a good reason for the split

The RBI has a mandate to keep retail inflation at 4 per cent within a band of 2 percentage points on either side