Monetary Policy

Home loan rates over Rs 75 lakh to get dearer as risk weight rises again

Risk weight back to pre-pandemic level of 50%

Industry associations welcome RBI decision to pause interest rates

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

This is a pause, not a pivot, says RBI guv on surprise hold in key rates

Reserve Bank Governor Shaktikanta Das on Thursday made it clear that the decision to hold rates should be seen as a pause, and not as a pivot. The rate-setting Monetary Policy Committee (MPC) will act on the rates as and when necessary, Das said. "If I have to characterise today's monetary policy in just one line...it's a pause, not a pivot," Das told reporters in the customary interaction with reporters after the announcement of the policy review. Earlier in the day, the six-member MPC voted unanimously to keep the repurchase or repo rate unchanged at 6.50 per cent, surprising analysts who were expecting the central bank to make a final 25 basis points hike before opting to pause. Das said RBI is keen to assess the cumulative impact of the rate actions done till now. There has been a cumulative hike of 250 basis points since May 2022. Deputy Governor Michael Patra said RBI has marginally upped its FY24 growth estimate to 6.5 per cent primarily on assumption of a decline in the ..

RBI likely to hike rates by 25 basis points next week, says economist

RBI has raised the policy rate by 250 bps since May 2022 to 6.5%, making it the most aggressive policy tightening cycle in a decade

RBI may opt for 25 bps interest rate hike in monetary policy meet: Experts

The two key factors which the committee will deliberate intensely while firming up the next monetary policy are elevated retail inflation

Present CPI aggregation method raises issues for monetary policy: RBI paper

Rebasing CPI necessary to make index relevant to present consumption patterns

Inflation-growth dynamics may enhance dilemma of monetary policy committee

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

India's steadying economy shows early signs of weakening consumption

Economic expansion may be under pressure as the "full-blown impact" of the Reserve Bank of India's 250 basis point hike in borrowing cost since May gets transmitted to end-consumers, Crisil Ltd., the

Change in monetary policy, rural revival can lift equities: Union AMC CEO

Systematic investment plan inflows are the cornerstone for the mutual fund industry's growth, he says

A suggestion to the IMF on inflation

Standard policies towards inflation have not helped. It is important to think out of the box

India is no longer a crazily expensive market, says Jefferies MD Nandurkar

"Indian equities should catch up with global peers with a good probability of outperformance in the second half of this year"

China's central bank signals stable policy as economy rebounds

The PBOC will adjust monetary policy at the appropriate time, Deputy Governor Liu Guoqiang said at the briefing

RBI launches 2 surveys to gather 'useful inputs' for monetary policy

The Reserve Bank of India on Wednesday launched two key surveys, results of which provide "useful inputs" for the central bank's bi-monthly monetary policy. One of the surveys is to know inflation expectations of households and the other is to gauze the consumer confidence. The March 2023 round of Inflation Expectations Survey of Households (IESH), RBI said, aims at capturing subjective assessments on price movements and inflation, based on their individual consumption baskets, across 19 cities. The cities are: Ahmedabad, Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Jammu, Kolkata, Lucknow, Mumbai, Nagpur, Patna, Raipur, Ranchi and Thiruvananthapuram. "The survey seeks qualitative responses from households on price changes (general prices as well as prices of specific product groups) in the three months ahead as well as in the one year ahead period and quantitative responses on current, three months ahead and one year ahead inflation rate

HDFC Ltd hikes home loan rates by 25 basis points effective March 1

However, lender has a limited period festive season offer, under which borrowers with credit scores of 760 and above can get home loans at 8.7% till March 31

Sensex sees worst day in two months on US Fed interest rate fears

Investors were also nervous ahead of the release of the minutes of the Federal Open Market Committee's meeting later Wednesday

SBI loans to get costlier as bank hikes key lending rate; Details here

Following the RBI MPC's repo rate hike earlier this month, many banks like Bank of Baroda, Bank of India, and Punjab National Bank have also hiked their key lending rates

Retaining policy flexibility

Inflation remains a concern for the RBI

No proposal to increase overseas investment limits for MFs: RBI Governor

There is no proposal to increase the overseas investment limits for domestic mutual funds at the moment, Reserve Bank Governor Shaktikanta Das said on Wednesday. Speaking to reporters at the customary post-policy review press conference, Das acknowledged that there have been requests from mutual funds and other market players for relaxations of the limits. "We have examined that. But we have not taken a positive decision on it yet. There is no proposal to increase the limits at the moment," Das said. Deputy Governor T Rabi Sankar said the same issue had come up a year ago as well and it was decided to maintain the status quo then. It can be noted that there is an overall industry-level limit of USD 7 billion for mutual funds. The RBI regulates the fund inflows and outflows into the country. Capital markets regulator Sebi had in June last year permitted mutual funds to again invest in foreign stocks within the aggregate mandated limit of USD 7 billion after a correction in stocks.

RBI to launch pilot project for QR-based coin vending machines in 12 cities

These vending machines will dispense coins against a debit to the customer's account. The process will use Unified Payments Interface (UPI) instead of physical tendering of notes

RBI MPC: When and where to watch policy announcement by Shaktikanta Das

RBI monetary policy: In December, Das had said that despite consecutive rate hikes, core inflation had continued to remain 'sticky'