The Governor's reminder that the repo rate is still below the pre-pandemic level served as a clear signal that more rate hikes lie ahead
RBI Governor Shaktikanta Das has already indicated that there may be another hike in the repo rate though he refrained from quantifying it
FY23 inflation projection may go above 6%; liquidity steps anticipated
The central bank will likely revise its inflation estimate to 6.2-6.5 per cent, which is way above the upper end of its tolerance band of 2-6 per cent, the economists at Barclays said
The proposed policy regime may seem a bit strange to some readers
Given the tone of urgency in RBI's statement to support the altered inflation-growth dynamics, "we now revise our call and expect the RBI to hike repo rate by an additional 60 bps in the rest of FY23"
The central bank raised the repo rate by 40 basis points to 4.40% following a emergency meeting earlier this month.
For new customers, on loans upto Rs 30 lakh, interest rate charged will be 7.10 per cent.
For the RBI, a correct reading of its mandate would have been that the inflation target is 4%, not 6%. And action to raise interest rates should have begun last year, writes T N Ninan
Non-bank finance companies (NBFCs), however, may feel more heat, except those engaged in mortgage financing
Cost of borrowing to go up; analysts say robust tax revenues crucial
BOB withdraws interest rebates for home, car loans
The 10-year government bond shot up 26 bps, with the street expecting another rate hike in the June policy
RBI announcement saw the markets tumble, with the S&P BSE Sensex slipping over 1,100 points in intraday deals to around 55,800 levels.
The Russia-Ukraine conflict has significantly impacted the trajectory of inflation
RBI Monetary policy LIVE updates: As expected by market participants, RBI retained status quo on key interest rates. Governor Shaktikanta Das said. "Approach needs to cautious, but proactive". Stay tu
Expectations are for the RBI to revive open-market operations or resort to Operation Twists, wherein it buys longer bonds and sells shorter-dated notes, to support the market amid record debt supply
Treasury executives say liquidity surplus continues to be sizeable
The Reserve Bank of India kept the key policy rates unchanged in its monetary policy review, surprising most experts who were betting on a reverse repo rate hike. Find out what the status quo mean
Rampant corruption, double digit inflation, policy paralysis were part of the dark age under Congress rule, says Sitharaman