The deposit and lending rates are directly proportional to the repo rate, and they generally go up if the benchmark rate is hiked
RBI MPC: Shaktikanta Das said that the repo rate hike of 25 bps is considered appropriate at this juncture but the monetary policy will remain agile to inflation
RBI monetary policy: In December, Das had said that despite consecutive rate hikes, core inflation had continued to remain 'sticky'
The key takeaway from the governor's 3,000-word statement is 'the battle against inflation is not over'
RBI Policy: After an initial rate hike of 40 basis points on May 4, the RBI has hiked the repo rate by 50 basis points thrice, on June 8, August 5 and September 30
Inflation target retained at 6.7%; trajectory remains uncertain: Governor
If you don't have a surplus, opt for higher EMI rather than longer tenor
The interest rate hike comes after the Reserve Bank of India's (RBI's) six-member monetary policy committee (MPC) raised the benchmark repo rate by another 50 bps to 5.40 per cent last week
In the last policy announcement on June 8, the Reserve Bank of India (RBI) announced a repo rate hike of 50 basis points to take the rate from 4.4 per cent to 4.90 per cent
The Reserve Bank's rate setting panel will hike the key repo rate by 0.35-0.50 per cent at the next week's review meeting, Axis Bank chief economist Saugata Bhattacharya said on Thursday. A hike of such a quantum will take the repo rate beyond the 5.15 per cent level, at which the RBI had begun the ultra-accommodative measures in the face of the COVID-19 pandemic, he told reporters. It can be noted that the monetary policy committee (MPC) has hiked rates in two consecutive moves in May and June by a cumulative 0.90 per cent, taking the repo rate at which it lends to the system to 4.90 per cent, in a bid to contain inflation. Bhattacharya said the MPC will go into the internal surveys like household inflation expectations and consumer confidence while deciding the quantum of the rate hike. He said the rate hike will be both an attempt to stem inflation expectations, and also one part of it will be a frontloading of actions. A majority of developed world central banks like the US Fe
RBI's repo rate hike spells bad news for those who were looking to buy a home and also for those who are paying their EMIs
In response to each policy rate cut by the central bank, the bond market passed on the cuts almost immediately
Reserve Bank of India's repo rate is expected to remain unchanged during FY22, said Emkay Global in a report.
This is the fourth time in a row that MPC has decided to keep the policy rate unchanged at 4%. The central bank had slashed the repo rate by 115 basis points since late March 2020 to support growth
Given inflation pressure, there is no doubt that it would be difficult for the MPC to cut rates in the near-term
RBI took cognizance of the difficult situation amid the global coronavirus crisis and announced a number of measures for the export and import sector
The central bank cut the repo rate by 40 bps to 4% and the reverse repo rate was brought down to 3.35%
If Reserve Bank's rate cut pause has shocked you, blame it on inflation
If the central bank views asset purchases as a way to influence the waning quantity of money, then it should act now. Doing so may well save the day
Shaktikanta Das likely to initiate required steps in coming weeks