Survey shows inflation to soften further
RBI Governor's statement says, this process will be gradual, calibrated, and non-disruptive, while remaining supportive of the economic recovery
Retains accommodative stance, FY22 growth forecast; lowers inflation projection
The RBI has calendarized its VRRR auction and stands ready to enhance its duration. This is the first sign of preparing the market for an eventual increase in the reverse repo rate.
RBI Monetary policy highlights: RBI announcement comes against the backdrop of Covid-19 infections receding in recent days and the economy stablising. Stay tuned for all the LIVE updates
Repo rate and the reverse repo rate remain unchanged at 4% and 3.35%
There will not be any shock to the market, with the calendar being drawn out.
RBI bought 2.2 trillion rupees of bonds through Government Securities Acquisition Programme, or GSAP, in previous two quarters.
The monetary policy committee's commentary on inflation, growth and bonds is of much interest to the market.
A delay by RBI could increase risks
The Reserve Bank of India's three-day monetary policy committee (MPC) meeting ends on Friday. How will the markets react to the RBI Policy meet? What's priced in and what's not? Let's find out
Fiscal interventions are needed to boost demand and induce durable growth
The government's critics and loyalists are both wrong in the way they view economic data.
Here are the top BS Opinion articles of the day
The RBI accepts overnight excess liquidity from banks at 3.35 per cent, its reverse repo rate
Withdrawal of excess liquidity is akin to taking away the training wheels from a kid's bike. They help a kid maintain balance but don't teach how to ride
Analysts keen to see if more members of the six-strong monetary policy committee call for changing the stance to neutral: like Jayanth Varma did in August.
Now the issue is whether the repo rate in isolation is adequate in the absence of the corridor
'Our collective decision was to record our views through the MPC minutes and not elsewhere,' says Chetan Ghate.
Only credit growth can help banks to get out of this liquidity drag. That can happen when growth is secured (and not through loan melas). But if it takes longer, risk of higher inflation becomes real