Page 3 - Repo Rate
SBI economists expect RBI to hit pause button on interest rate hike
Economists at SBI on Monday said they expect the Reserve Bank of India (RBI) to hit the pause button on interest rate hike at its upcoming monetary policy review this week. The central bank's Monetary Policy Committee (MPC), the six-member rate setting panel, is likely to continue with the current 'withdrawal of accommodation' stance, the SBI economists said. RBI Governor Shaktikanta Das-headed MPC started its three-day meeting on Monday and it will announce the decision on Wednesday. "Even though RBI could pause as it allows past rate actions to work with long and variable lags, the RBI could still guide the markets with a rate action in future that will be purely data dependent," the note said. Expecting headline inflation to decline closer to 5 per cent by March 2023 and further to 4.2 per cent in April, the economists said they expect a pause from the RBI at the next policy announcement and the present repo rate of 6.25 per cent will be the terminal rate. With the headline ...
 "SBI economists expect RBI to hit pause button on interest rate 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
 "Repo rate may go up 25 bps before a pause: Business Standard policy poll")
Blowout jobs: A headache for Federal Reserve, or a back-to-2019 gift?
The dissonance in the data will be a key puzzle for policymakers to resolve as they plot their next interest rate moves
 "Blowout jobs: A headache for Federal Reserve, or a back-to-2019 gift?")
RBI Monetary Policy: One last rate hike now but signaling close to the peak
Inflation remains sticky and most G-10 central banks may in any case, continue with rate hikes; given India's resilient growth momentum, the MPC might increase the repo rate one final time
 "RBI Monetary Policy: One last rate hike now but signaling close to the peak")
Bank of Baroda increases MCLR from 8.3% to 8.5% effective January 12
Marginal cost of funds-based lending rate (MCLR) is the minimum interest rate below which a bank cannot lend, except in certain cases
 "Bank of Baroda increases MCLR from 8.3% to 8.5% effective January 12")
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
 "RBI governor Shaktikanta Das against pausing rate hikes: MPC minutes")
RBI opts for smaller repo rate hike of 35 bps, hints at more to come
Main risk is core inflation remaining sticky: Governor
 "RBI opts for smaller repo rate hike of 35 bps, hints at more to come")
Does sticky core inflation mean more rate hikes by RBI?
According to the RBI governor, persistent and sticky core inflation remains a cause for concern
 "Does sticky core inflation mean more rate hikes by RBI?")
We've lowered size of policy rate change, RBI's Das and Patra tell media
Battle against inflation is far from over though the worst is behind us; moderation of inflation will be grudging and uneven, they say
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'
RBI hikes repo rate by 35 bps to 6.25%, cuts FY23 GDP forecast to 6.8%
RBI governor Shaktikanta Das emphasises concerns on core inflation, says overall price momentum high
 "RBI hikes repo rate by 35 bps to 6.25%, cuts FY23 GDP forecast to 6.8%")
RBI Monetary Policy: Expect 35 bps repo rate hike tomorrow, say experts
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
RBI likely to moderate rate tightening amid retail inflation, say experts
According to experts, after three consecutive 50 basis point rate hikes, the RBI may decide to reduce the rate increase by 25 to 35 basis points for lending rates
Deposit rates may rise 105 bps due to 190 bps repo rate hike: SBI report
CASA occupies a 45% share in overall bank deposits; it is FDs, which make the remaining 55%, which will need the rate adjustment
 "Deposit rates may rise 105 bps due to 190 bps repo rate hike: SBI report")
RBI release suggests Nov MPC meet only to discuss inflation target failure
MPC may decide RBI's response to govt on the matter; Unlike earlier off-cycle meetings in which interest rate action was taken outside schedule without prior notice, this one was announced in advance
 "RBI release suggests Nov MPC meet only to discuss inflation target failure")
SBI hikes interest rate on savings deposits above Rs 10 crore by 30 bps
The deposits will attract an interest rate of 3%, effective Oct 15. Balances up to Rs 10 cr to earn 2.7% interest
 "SBI hikes interest rate on savings deposits above Rs 10 crore by 30 bps")
Axis Bank hikes MCLR by 25 bps, joining other lenders in policy action
Central bank's MPC has cumulatively increased the repo rate by 190 bps since May
 "Axis Bank hikes MCLR by 25 bps, joining other lenders in policy action")
Headline inflation might have peaked in September, says RBI report
But cautions that fight against price rise will be 'dogged and prolonged'
 "Headline inflation might have peaked in September, says RBI report")
RBI's repo rate hike was necessary to combat inflation risks: MPC minutes
The MPC is of the view that further calibrated monetary policy action is warranted to keep inflation expectations anchored
 "RBI's repo rate hike was necessary to combat inflation risks: MPC minutes")
Stagger entry into longer-duration funds over next six months: Experts
To stay safe, keep bulk of portfolio in shorter-duration or target maturity funds
 "Stagger entry into longer-duration funds over next six months: Experts")
