Sensex up 144pts, Nifty nears 17,600 as RBI pauses hike; realty stocks jump
CLOSING BELL: Shaktikanta Das said the move was only "a pause and not a pivot"
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In a surprise move, the six-member Monetary Policy Committee (MPC) on Thursday decided to keep the policy rate unchanged at 6.5 per cent. The pause in repo rate hike comes after six hikes in a row.
Since May 2022, the MPC has increased the policy rate by 250 basis points (bps). These repo rate hikes were preceded by the introduction of a standing deposit facility (SDF) at 40 bps higher than the fixed rate reverse repo. Hence, the effective rate hike since April last year has been 290 bps.
The decision to press the pause button was taken unanimously by the rate-setting body, which has three external members and three members from within the Reserve Bank of India (RBI).
Consequent to the repo rate remaining unchanged at 6.5 per cent, the SDF rate will remain unchanged at 6.25 per cent, and the marginal standing facility (MSF) rate and the bank rate at 6.75 per cent.
The MPC also decided, by a five to one majority, to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.
In his statement, RBI Governor Shaktikanta Das said, “Economic activity remains resilient and real gross domestic product (GDP) growth is expected to have been 7 per cent in 2022-23. Consumer price inflation (CPI) has, however, increased since December 2022, driven by price pressures on cereals, milks, and fruits.”
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This is new feeds 123
This is new feeds 123
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This is new feeds
This is new feeds
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In a surprise move 123
In a surprise move 123
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In a surprise move 11
In a surprise move
6:47 PM
In a surprise move
In a surprise move
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The effective rate hike since April
The effective rate hike since April
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In a surprise move, the six-member Monetary Policy Committee
In a surprise move, the six-member Monetary Policy Committee
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Hence, the effective rate hike since April last year has been 290 bps
Hence, the effective rate hike since April last year has been 290 bps
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the CPI inflation is projected to moderate to 5.2 per cent for 2023-24; with Q1 at 5.1 per cent;
the CPI inflation is projected to moderate to 5.2 per cent for 2023-24; with Q1 at 5.1 per cent; Q2 at 5.4 per cent; Q3 at 5.4 per cent; and Q4 at 5.2 per cent. These figures are projected by taking into account these factors and assuming an annual average crude oil price (Indian basket) of $85 per barrel and a normal monsoon.
5:39 PM
RBI to set up portal to search across multiple banks for unclaimed deposits
In order to improve and widen the access of depositors or beneficiaries, it has been decided to develop a web portal to enable search across multiple banks for possible unclaimed deposits.
5:35 PM
Sebi takes slew of measures to crack down on misleading investment ads
In a circular issued on Wednesday, Sebi prohibited the use of terms like ‘Best’, ‘No. 1’, ‘Top’, ‘leading’, and ‘one of the best amongst market leaders’, among others in any form of advertisement.
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First Published: Apr 06 2023 | 5:37 PM IST
