Page 3 - Mpc

Before the pause

Overall conditions call for another rate hike

RBI's 3-day long MPC meeting starts amid expectations of lower rate hike

RBI Governor Shaktikanta Das-headed Monetary Policy Committee (MPC) started its three-day meeting on Monday amid expectations of a smaller 25 basis points rate increase or a pause on the rate hiking spree that started in May last year to check inflation. The decision of the six-member rate setting panel will be announced by the Governor on Wednesday. With retail inflation showing signs of moderation and remaining below the Reserve Bank of India's 6 per cent upper tolerance level, and projected slowdown in GDP growth in the next fiscal starting April, experts are of the opinion that the central bank may only opt for a 25 basis points hike in the key interest rate. Another opinion is that the RBI may press the pause button on rate hike on Wednesday itself. "We expect the RBI to pause in February policy," State Bank of India's Economic Research Department said in a report titled 'Prelude to MPC Meeting on Feb 6-8, 2023'. In the current rate cycle, it said that rate actions, both hike

Repo rate may go up 25 bps before a pause: Business Standard policy poll

MPC could signal pause in rate hikes going ahead as inflation eases

Monetary policy making: 2022 was year of reset, 2023 could be a long pause

25 bps raise likely in Feb, before RBI hits status quo button, feel experts

MPC member Ashima Goyal says no time for aggressive fiscal consolidation

The government should not go in for an 'aggressive fiscal consolidation' in the upcoming budget as global risks have not abated, RBI Monetary Policy Committee (MPC) Member Ashima Goyal said on Wednesday. Goyal further said subsidies are expected to come down as food and energy inflation moderates. WPI inflation in food articles in November was 1.07 per cent against 8.33 per cent in the previous month. In the 'fuel and power' basket, inflation was 17.35 per cent last month. "Given fears of a global slowdown, this is not the time for aggressive consolidation. Sticking to small pre-announced steps on the path will minimise growth sacrifice, while moderating demand and the current account deficit, thus lowering the risk premium that keeps spreads high and raises the cost of government and private borrowing," she told PTI. India's fiscal deficit, the gap between expenditure and revenue, is projected to come down to 6.4 per cent in current fiscal ending March 2023, from 6.71 per cent in .

India may need some durable liquidity infusion: MPC member Ashima Goyal

In a Q&A, she says the majority opinion is that the country has handled the turbulence well and can do so again, though the probability is low in the immediate future

India to face export shocks from global recession: BFSI economists' panel

While two of the eminent panelists - Ghosh and Nayar - said they expect a pause in the monetary cycle by the MPC, Chakraborty, Sagar, and Kapoor said the MPC could still hike by 25-50 basis points

RBI governor Shaktikanta Das against pausing rate hikes: MPC minutes

MPC minutes show Das saying that in a tightening cycle, especially in a world of high uncertainty, giving out explicit forward guidance on the future path of monetary policy would be counterproductive

BS BFSI Insight Summit 2022: Leading economists to discuss recession fears

From Aditi Nayar the Chief Economist at ICRA to Mridul Saggar, professor of practice, IIM Kozhikode; formerly MPC Member and RBI ED, here is the full list of economists on BFSI panel

Govt not to make RBI report on MPC's first-ever inflation failure public

MPC is said to have failed to achieve inflation target if average CPI inflation falls outside 2-6% range for three straight quarters. This was the case in the three quarters from Jan to Sept of 2022

No pause in sight: A 25-basis-point rate increase in Feb can't be ruled out

The key takeaway from the governor's 3,000-word statement is 'the battle against inflation is not over'

South Indian Bank's move on tier-2 bond won't disrupt sector: Fitch

Lender decision to not redeem the bonds does not indicate any weakness in capital position, says ratings agency

Economists see 35 bps rate hike, then a pause: BS monetary policy poll

Some expect a slight reduction in GDP growth forecast

We should see core inflation dipping: RBI MPC member Ashima Goyal

Core inflation is calculated by largely stripping away the volatile components of food and fuel. Goyal was referring to certain products that have linkages with oil prices

GDP growth may have beaten MPC estimate of 6.3% in Q2, say most economists

The GDP numbers for the second quarter of the current financial year are scheduled to be out by this month end

RBI's MPC meets to draft letter to govt on missing inflation target

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

Rate setting panel meets to draft report on missing inflation target: RBI

The Reserve Bank's rate setting panel met on Thursday to discuss and draft a report for the government on why it failed to keep retail inflation below the target of 6 per cent for three consecutive quarters since January this year. "A separate meeting of the Monetary Policy Committee (MPC) was held on November 3, 2022 to discuss and draft the report to be sent to the Government by the Reserve Bank of India (RBI) under the provisions of Section 45ZN of the RBI Act, 1934 and Regulation 7 of RBI MPC and Monetary Policy Process Regulations, 2016," the central bank said in a statement. Section 45ZN of RBI Act deals with failure to maintain the inflation target. The meeting was chaired by RBI Governor Shaktikanta Das and attended by all MPC members -- Michael Debabrata Patra, Rajiv Ranjan, Shashanka Bhide, Ashima Goyal and Jayanth R Varma. The RBI Act requires the central bank's MPC to report to the government reasons for failure to meet the retail inflation target as well as measures to

After Fed hike, experts can't form consensus on expected MPC response

In September review, panel talked about aggressive monetary policy actions and stances across the world

RBI's MPC to explain first inflation miss since 2016 to government today

This is the first time the Reserve Bank of India is writing such a letter after the country switched to a flexible inflation-targeting regime and formed a committee in 2016 to set interest rates

RBI's letter may cite Ukraine war as main reason for high inflation: Report

For the past few months the MPC's and the governor's conduct has pointed at the war in Ukraine as the main reason for inflation staying above 6 per cent for three consecutive quarters