RBI has announced the decision of the MPC to keep the major policy repo rate at 4 per cent and reverse repo rate at 3.35 per cent unchanged
The Reserve Bank of India's Monetary Policy Committee is set to meet this week. Will it hike the reverse repo rate -- at which the central bank absorbs the excess liquidity? Let's find some answers
Will RBI go for a hike in reverse repo rate? What is Tarun Bajaj's take on revenue estimates? What will marketers track in RBI's policy meeting? How capable are Rafale fighter jets? All answers here
'Growth concerns amid spread of the Omicron variant and relatively benign inflation out-turns provide the RBI with enough room to maintain its growth-supportive monetary policies,' analysts said
The January 4-7 survey of 41 economists showed Indian retail inflation rose to 5.80% last month from 4.91% in November.
State Bank of India (SBI) has increased benchmark lending rate or base rate by 0.1 per cent, a move that may be followed by other lenders.
The next policy in February will be come post the Budget announcement. It will be crucial as the state of the economy will be clear as will the action taken by the government to counter Omicron impact
The current differential or spread is nearly three times the average spread in the last 10 years.
The broader indices also surged over a per cent each, and gainers outnumbered losers in 2.5:1 ratio
If Omicron becomes a major issue, risks to India's inflation will likely rise further
The RBI stopped the Government Securities Acquisition Programme (G-SAP), through which it has infused Rs 2.2 trillion of liquidity in the system
RBI Governor's statement says, this process will be gradual, calibrated, and non-disruptive, while remaining supportive of the economic recovery
The central bank also retained the GDP growth forecast at 9.5% for the on-going fiscal year and revised CPI inflation projection downward to 5.3% which also supported sentiment
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's key lending rate or the repo rate was held steady at 4% while the reverse repo rate or the borrowing rate also stayed unchanged at 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 Reserve Bank is likely to leave the key interest rates unchanged at its fourth bi-monthly policy review, according to HDFC Bank Chief Economist Abheek Barua
While the share of oil in India's import basket is as much as 22.5% currently, a falling rupee could fuel inflation and take the steam out of low interest rates
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.