RBI lending rates remain the same, inflation projection raised
2 years, 8 months ago

RBI lending rates remain the same, inflation projection raised

The Hindu  

The Monetary Policy Committee of the Reserve Bank of India on April 8, based on an assessment of the macroeconomic situation and the outlook, voted unanimously to keep the policy repo rate unchanged at 4%. “The MPC also unanimously decided to remain accommodative while focussing on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth,” RBI governor Shaktikanta Das said while making the announcement. Global crude oil prices briefly crossed US$ 130 per barrel, touching their highest level since 2008 and remain volatile at elevated levels, despite some correction,” he added. These developments have, first, ratcheted up the projections of global inflation, which was already running well above targets in major countries; and second, will produce sizeable adverse impact on output across geographies,” he said. Emphasising that geopolitical tensions have exacerbated at a time when the global economy was grappling with a sharp rise in inflation and consequent monetary policy normalisation in major advanced economies, he said global supply chain disruptions and input cost pressures are now expected to linger even longer.

Global Rbi Mpc Lending Rate Geopolitical Tensions Inflation Projection  supply  remain  inflation  projection  global  rates  financial  economies  policy  external  raised  growth  lending  rate  rbi

History of this topic

Price stability crucial for India’s economic growth, says RBI
4 days, 16 hours ago

Price stability crucial for India’s economic growth, says RBI

Live Mint  

The foundations for high growth in the Indian economy can be achieved through durable price stability, the monetary policy committee of the Reserve Bank of India said. "The MPC emphasises that strong foundations for high growth can be secured only with durable price stability," the minutes of the Monetary Policy Committee meeting held in December said. "The MPC also decided …

Growth slowdown: Why lay a deeper economic malaise at RBI’s door?
1 week, 2 days ago

Growth slowdown: Why lay a deeper economic malaise at RBI’s door?

Live Mint  

Chapter 16 in the Book of Leviticus, Old Testament, enjoins Aaron to organize sacrifices and expiate the sins of all Israelites. Various ministers, government officials and sundry industry representatives have been hinting at RBI culpability in India’s economic slowdown and have called upon its monetary policy committee to cut rates in support of growth. The debate began with this year’s …

​Staying the course: On the RBI and inflation
Trending News
2 weeks, 4 days ago

​Staying the course: On the RBI and inflation

The Hindu  

The Reserve Bank of India’s Monetary Policy Committee, in its latest bi-monthly review, has decided to maintain status quo on the benchmark interest rate of 6.50% for the eleventh consecutive time. India’s retail inflation, after trending below the median 4% target, for the first time in five years, for two months, spiked over September and October, with food prices leading …

RBI must restore balance between inflation, growth
2 weeks, 5 days ago

RBI must restore balance between inflation, growth

New Indian Express  

Despite the disappointing slump in economic growth, the RBI on Friday left the benchmark policy repo rate unchanged at 6.5 percent amid inflationary pressures. Maintaining a firm stance on inflation control, Governor Shaktikanta Das stressed that the central bank needed “more credible evidence” on the disinflationary process, which he said was getting prolonged and arduous. As Das rightly noted, there …

RBI keeps key lending rate unchanged at 6.5%, focus remains on tackling inflation
2 weeks, 5 days ago

RBI keeps key lending rate unchanged at 6.5%, focus remains on tackling inflation

India Today  

The Reserve Bank of India's Monetary Policy Committee has decided to maintain the status quo on key interest rates for the 11th consecutive time. Consequently, the standing deposit facility stands at 6.25%, and the marginal standing facility and the bank rate at 6.75%," announced RBI Governor Shaktikanta Das during the policy statement. "Tackling inflation is critical because high inflation reduces …

RBI must restore balance between inflation, growth
2 weeks, 5 days ago

RBI must restore balance between inflation, growth

New Indian Express  

Despite the disappointing slump in economic growth, the RBI on Friday left the benchmark policy repo rate unchanged at 6.5 percent amid inflationary pressures. Maintaining a firm stance on inflation control, Governor Shaktikanta Das stressed that the central bank needed “more credible evidence” on the disinflationary process, which he said was getting prolonged and arduous. As Das rightly noted, there …

RBI MPC meet: Growth needs a boost, but will inflation hold back rate cut?
Trending News
2 weeks, 6 days ago

RBI MPC meet: Growth needs a boost, but will inflation hold back rate cut?

India Today  

The Reserve Bank of India’s Monetary Policy Committee began its three-day meeting on Wednesday, setting the stage for a critical decision on the repo rate, which will be announced on December 6 at 10 AM. The meeting takes place amid growing calls from experts and leaders for a rate cut to support India’s slowing economic growth. Piyuh Goyal has even …

Monetary policy review: RBI should stick to its price stability mandate
3 weeks ago

Monetary policy review: RBI should stick to its price stability mandate

Live Mint  

One of the lingering effects of covid—‘long covid’—is that economic growth has begun to look a bit like the Sensex, albeit in slow motion. So, last fiscal year’s growth looked rosy in large part because growth in 2022-23 had flagged since 2021-22, when it was 9.7% but on a covid-shrunken GDP base of 2020-21. As the US Fed and major …

RBI MPC: FX, not inflation, curbing degrees of policy freedom
3 weeks ago

RBI MPC: FX, not inflation, curbing degrees of policy freedom

Live Mint  

After the recent GDP shocker, speculation is rife regarding a “policy action" in the December monetary policy meeting. Hence, we believe that in an increasingly volatile world, degrees of freedom for the RBI's monetary policy committee to ease policy to support growth would be constrained more by foreign exchange movements rather than inflation. While bond markets now anticipate rate cuts …

Is MPC doing enough on inflation? Consumers are divided
3 weeks, 1 day ago

Is MPC doing enough on inflation? Consumers are divided

Live Mint  

Mumbai: For the past 30 months, the Reserve Bank of India’s monetary policy committee has been fighting hard to bring inflation within its medium-term target of 4%. Nearly half of the total respondents surveyed favoured lower inflation and higher interest rates, and only 22% support the reverse. Governor Shaktikanta Das has repeatedly warned since the last policy that cutting rates …

Monetary policy: Emotive choices and immediate response mechanism
3 weeks, 2 days ago

Monetary policy: Emotive choices and immediate response mechanism

Live Mint  

The RBI kickstarted its post-covid normalization of monetary policy in April 2022. Since then, India’s monetary policy trajectory had been moving forward without any humps amid well-aligned expectation of financial market participants, corporates, and the government. Willy nilly, the conclusion in such debates appears to be veering towards the notion that India’s Monetary Policy Committee is maintaining its policy rate …

India in economic sweet spot amid global headwinds: Moody’s
1 month, 1 week ago

India in economic sweet spot amid global headwinds: Moody’s

Live Mint  

New Delhi: India’s economy is in a sweet spot, growing at 7.2% in 2024 with inflation moderating despite a temporary spurt, Moody’s Investors Service India Pvt. According to Moody’s global macro outlook for 2025-26, India’s economy is growing robustly and has the potential to sustain high growth rates as strong private sector financial health reinforces a virtuous economic cycle. Despite …

RBI maintains calm against global noise
4 months, 2 weeks ago

RBI maintains calm against global noise

Live Mint  

The Reserve Bank of India’s bi-monthly monetary policy orchestrated on 8th August 2024 ensured that the “elephant” was deep in the forest before changing the policy. The RBI’s Monetary Policy Committee voted with 4:2 to keep the policy repo rate and stance unchanged at 6.50% and “withdrawal of accommodation” respectively. Like last policy, the two of the external MPC members, …

Explained: Why Economic Survey 2024 has taken a cautious stance
5 months ago

Explained: Why Economic Survey 2024 has taken a cautious stance

India Today  

The Economic Survey 2023-24 has adopted a more cautious stance on India’s growth prospects, projecting an expansion of 6.5% to 7% for the fiscal year. Chief Economic Adviser V. Anantha Nageswaran highlighted that while the Indian economy remains resilient, it faces potential challenges from geopolitical uncertainties and the risk of cheaper imports that could impact private capital formation. "The Indian …

What is the outlook on the global economy? | Explained
8 months ago

What is the outlook on the global economy? | Explained

The Hindu  

The story so far: The International Monetary Fund released the latest global financial stability report on Tuesday warning about the risks to the global financial system from persistent high inflation, rising lending in the unregulated credit market, and increasing cyber-attacks on financial institutions. Investors have been pushing up the prices of financial assets such as stocks in recent months in …

India is the bright spot in sluggish economy
8 months, 1 week ago

India is the bright spot in sluggish economy

Hindustan Times  

The April edition of IMF’s World Economic Outlook shows that the global economy has done better in the year than how the Fund expected it to do. Policymakers will have to be cautious in dialling back on monetary tightening, and be mindful of the growing national debt burden, especially in advanced countries. All this will have to be done while …

DC Edit | Cautious RBI targets inflation
8 months, 2 weeks ago

DC Edit | Cautious RBI targets inflation

Deccan Chronicle  

The Reserve Bank of India-led Monetary Policy Committee has once again kept the policy repo rate unchanged at 6.5 per cent. Retail inflation hovered around 5.1 per cent during January and February 2024, which is a marginal decline from 5.7 per cent in December 2023. Food inflation — which is the most important focus area for the world’s populous country …

Need to be vigilant on inflation front: MPC minutes
10 months ago

Need to be vigilant on inflation front: MPC minutes

New Indian Express  

NEW DELHI: A majority of members of the monetary policy committee of the Reserve Bank of India remained focused on risk of inflation in future and favoured status quo on rate cut. Five out of six members of the MPC voted to keep policy rates unchanged due to uncertainty in inflation over food prices, as per the Minutes of MPC. …

DC Edit | RBI is right to be cautious
10 months, 2 weeks ago

DC Edit | RBI is right to be cautious

Deccan Chronicle  

A cautious Monetary Policy Committee has once again decided to keep the repo rate unchanged at 6.5 per cent in view of global uncertainty and moderately high inflation. With the projection of a decently high economic growth rate of seven per cent, RBI’s focus remains squarely on bringing down inflation to its target of four per cent. The rate cut …

MPC minutes: Inflation outlook clouded by food prices, weather shocks, says RBI Guv
1 year ago

MPC minutes: Inflation outlook clouded by food prices, weather shocks, says RBI Guv

Hindustan Times  

Reserve Bank of India governor Shaktikanta Das, in the December’s monetary policy meet, said that there is uncertain inflation outlook due to volatile food prices and weather shocks, according to minutes of the meeting released on Friday. During the monetary policy committee meeting held between December 6 to 8, all members — Shashanka Bhide, Ashima Goyal, Jayanth R. Varma, Rajiv …

RBI MPC Meet: Will the RBI hold interest rates but change its policy stance?
1 year ago

RBI MPC Meet: Will the RBI hold interest rates but change its policy stance?

Live Mint  

The Reserve Bank of India's Monetary Policy Committee will begin its three-day huddle to decide on India's monetary policy on Wednesday, December 6, with the outcome due on December 8. The central bank is likely to keep policy rates unchanged keeping in mind the fact that retail inflation, despite moderation, is still above its 4 per cent target while the …

RBI’s December policy review: Status quo to continue
1 year ago

RBI’s December policy review: Status quo to continue

Live Mint  

The Reserve Bank of India is likely to hold the key interest rates in its December monetary policy review and continue with its emphasis on containing inflation, which has shown encouraging trends the past two months. Given the likely status quo, the market will instead closely track the narrative from RBI’s monetary policy committee for direction on rates and liquidity …

The Reserve Bank must maintain its hawkish stance
1 year ago

The Reserve Bank must maintain its hawkish stance

Live Mint  

The Reserve Bank of India’s monetary policy committee will hold its fifth meeting of FY24 during 6-8 December. Add to this, the rising concerns of the RBI about the exceptionally strong and resilient growth in unsecured consumer loans, and the need for loosening disappears entirely. Although an explicit rate hike to bring the policy interest rates in line with the …

Tightrope walk: The Hindu Editorial on RBI holding rates
1 year, 2 months ago

Tightrope walk: The Hindu Editorial on RBI holding rates

The Hindu  

The decision of the RBI’s Monetary Policy Committee to leave interest rates unchanged even as the central bank warned of the major risk that ‘high inflation’ poses to macroeconomic stability is a clear sign that monetary authorities find themselves caught in a cleft stick. After a relatively benign first quarter, when headline retail inflation averaged 4.63% as against the RBI’s …

RBI MPC Meeting: India Poised To Become Growth Engine Of World, Says Governor Das — Presser Key Takeaways
1 year, 2 months ago

RBI MPC Meeting: India Poised To Become Growth Engine Of World, Says Governor Das — Presser Key Takeaways

ABP News  

India is poised to become the new growth engine of the world as domestic economic activity continues to be resilient, said RBI Governor Shaktikanta Das on Friday addressing post monetary policy press conference. RBI Governor Shaktikanta Das, as per ANI, said, "Domestic economic activity continues to be resilient. India is poised to become the new growth engine of the world.It's …

RBI Monetary Policy: Central bank likely to hold rates, maintain hawkish stance
1 year, 2 months ago

RBI Monetary Policy: Central bank likely to hold rates, maintain hawkish stance

India Today  

The Reserve Bank of India's Monetary Policy Committee is expected to maintain key interest rates in its upcoming decision but maintain focus on inflation amid rising global crude oil prices and sustained economic growth. In a survey of 71 economists conducted by news agency Reuters in late September, all but one anticipated that the RBI would keep its key repo …

ECONOMIC PERSPECTIVES | Why India is unable to curb inflation
1 year, 3 months ago

ECONOMIC PERSPECTIVES | Why India is unable to curb inflation

The Hindu  

Published : Sep 07, 2023 11:00 IST - 6 MINS READ Even as the Indian government celebrates the high growth rates that the increases in official GDP figures signal, it is haunted by the spectre of inflation. Wheat prices at the consumer level, which were falling relative to the previous year in the months preceding October 2021, started to rise …

RBI committed to bring down inflation to 4%; watchful of price risks: Governor Das
1 year, 3 months ago

RBI committed to bring down inflation to 4%; watchful of price risks: Governor Das

The Hindu  

Reserve Bank Governor Shaktikanta Das on Tuesday said the central bank is committed to bringing down inflation to 4% and will remain watchful of risks as more frequent global supply shocks can have profound implications on the management of the price situation. “The frequent incidences of recurring food price shocks pose a risk to the anchoring of inflation expectations, which …

Risky recourse: The Hindu Editorial on the Reserve Bank of India’s Monetary Policy Committee and policy rate
1 year, 4 months ago

Risky recourse: The Hindu Editorial on the Reserve Bank of India’s Monetary Policy Committee and policy rate

The Hindu  

The latest decision by the Reserve Bank of India’s Monetary Policy Committee to leave its policy rate unchanged is a calculated risk taken by the rate setting panel, especially when viewed in light of the upward revision of its inflation forecast. Barely two months after projecting Consumer Price Index-based inflation to average 5.1% over the current fiscal year ending in …

RBI holds rates, vows to keep price stability
1 year, 6 months ago

RBI holds rates, vows to keep price stability

The Hindu  

The Monetary Policy Committee of the Reserve Bank of India, on the basis of an assessment of the current and evolving macroeconomic situation, on June 8 decided to keep the policy repo rate under the liquidity adjustment facility unchanged at 6.50% The standing deposit facility rate remains unchanged at 6.25% and the marginal standing facility rate and the Bank Rate …

RBI holds rates but signals tight monetary policy ahead
1 year, 6 months ago

RBI holds rates but signals tight monetary policy ahead

Hindustan Times  

India's central bank kept its key lending rate steady for a second straight policy meeting on Thursday, as widely expected, but signalled that monetary conditions will remain tight for some time as it looks to further curb inflationary pressures. The RBI maintained its policy stance of "withdrawal of accommodation" to ensure inflation progressively aligns with the committee's target while remaining …

'GDP growth rate for 2023 to be 7% or more': RBI Governor Shaktikanta Das on inflation
1 year, 7 months ago

'GDP growth rate for 2023 to be 7% or more': RBI Governor Shaktikanta Das on inflation

India TV News  

The governor of the Reserve Bank of India stated on Wednesday that although inflation has decreased, the central bank cannot be complacent about easing price pressures at this time due to potential weather-related uncertainties. Das stated that the retail inflation data for this month, which is scheduled to be released on June 12, "could possibly be lower." Das added that …

DC Edit | Sweet relief for borrowers
1 year, 8 months ago

DC Edit | Sweet relief for borrowers

Deccan Chronicle  

The Reserve Bank of India-led Monetary Policy Committee sprang a surprise on people by pausing the expected repo rate hike. The MPC had increased the repo rate — the interest rate that RBI charges to lend money to banks — by 250 basis points in six sessions over the last one year — which increased the rate from four per …

Pause and effect: On the temporary pause to inflation-battling monetary tightening
1 year, 8 months ago

Pause and effect: On the temporary pause to inflation-battling monetary tightening

The Hindu  

The Reserve Bank of India’s Monetary Policy Committee has unanimously and wisely decided to apply a temporary pause to its inflation-battling monetary tightening by keeping the repo rate unchanged. Notwithstanding his assertions that India’s ‘banking and non-banking financial service sectors remain healthy and economic activity remains resilient’, it is the spectre of rising credit costs posing risks to both consumption …

Explained | Should India worry about rising COVID-19 cases?
1 year, 8 months ago

Explained | Should India worry about rising COVID-19 cases?

The Hindu  

The story so far: Prime Minister Narendra Modi this week convened a high-level meeting of the COVID-19 task force. As of March 23, India officially reported 1,300 new coronavirus cases over a 24-hour period bringing the overall tally of active cases to 7,605. Editorial |No cause for alarm: On the Omicron recombinant XBB.1.16 in India He emphasised the need to …

RBI lifts loan costs to tame inflation
1 year, 10 months ago

RBI lifts loan costs to tame inflation

The Hindu  

The Monetary Policy Committee of the Reserve Bank of India on Wednesday raised the benchmark lending rate by 25 basis points to 6.5% as the RBI targets persistently high core or underlying inflation that it sees as a risk to the improving outlook for the economy. Observing that the rate increases since May were still working their way through the …

Mint Explainer: After covid, the unfolding of an unfair world
1 year, 11 months ago

Mint Explainer: After covid, the unfolding of an unfair world

Live Mint  

The post-pandemic world is not only poorer, but also becoming more unequal and unfair. Severe lockdowns in pursuit of "zero covid" appears to have slowed the Chinese economy for now, but the developing world -- with the possible exception of India -- has taken a bigger hit. The World Bank also points out that "the large fiscal demand on global …

Indian economy poised for further growth in 2023 despite global headwinds
1 year, 11 months ago

Indian economy poised for further growth in 2023 despite global headwinds

Deccan Chronicle  

NEW DELHI: The Indian economy recovered from the COVID-induced downturn during 2022 and is poised for further improvement in the coming quarters though downside risks emanating from geopolitical tensions, strengthening dollar and elevated inflation will continue. The challenges before the government and the Reserve Bank in the new year would be to arrest inflation, check declining value of rupee against …

COVID-19: Next 40 days 'crucial' as India may see surge in new cases in January
1 year, 11 months ago

COVID-19: Next 40 days 'crucial' as India may see surge in new cases in January

Firstpost  

“Previously, it has been noticed that a new wave of COVID-19 hits India around 30-35 days after it hits East Asia…. This has been a trend,” an official said New Delhi: The next 40 days are going to be crucial as India may see a surge in COVID-19 cases in January, official sources said on Wednesday citing the pattern of …

Explained | Is the economy driving with the brakes on?
2 years ago

Explained | Is the economy driving with the brakes on?

The Hindu  

The story so far: At this time last December, India’s economy was on the cusp of a fledgling recovery from the COVID-19 pandemic, though the Omicron variant posed fresh speed bumps for the rebound. As JP Morgan managing director and India chief economist Sajjid Chinoy explained at a CII economic policy summit last week, 2022 was expected to see a …

RBI must keep playing it safe
2 years ago

RBI must keep playing it safe

Hindustan Times  

The last three years have shown why fiscal and monetary policy have to remain conservative and nimble, and why policymakers themselves have to be resolute. Last week, the monetary policy committee of the Reserve Bank of India raised the interest rate by 0.35 percentage points to 6.25% and, according to its policy statement, “decided to remain focused on withdrawal of …

RBI increases key lending rate by 35 bps, pegs GDP growth at 6.8%
2 years ago

RBI increases key lending rate by 35 bps, pegs GDP growth at 6.8%

The Hindu  

The Monetary Policy Committee of the Reserve Bank of India on December 7 increased the repo rate by 35 basis points to 6.25%, and the Standing Deposit Facility stands raised to 6%. The Ukraine invasion by Russiais a black swan event that severely affected energy and food prices around the world.” Though prices have receded somewhat, inflation remains high. Going …

Coordinated policy efforts are required to check high inflation rate: RBI MPC member
2 years, 1 month ago

Coordinated policy efforts are required to check high inflation rate: RBI MPC member

India TV News  

Inflation Issue: RBI Monetary Policy Committee member Shashanka Bhide on Friday batted for coordinated policy efforts to address the issue of the high inflation rate. Monetary policy tightening aims to bring down the inflationary pressures Bhide said the monetary policy tightening by the RBI aims to bring down the inflationary pressures as high inflation adversely affects consumption and investment demand. …

RBI rate hikes to contain price rise; inflation to fall below 6 pc next year
2 years, 2 months ago

RBI rate hikes to contain price rise; inflation to fall below 6 pc next year

India TV News  

RBI to contain rate hike: RBI Monetary Policy Committee member Ashima Goyal on Wednesday said that the efforts of the Reserve Bank to contain price rise by repeatedly increasing interest rates will help in containing inflation, which is likely to fall below 6 per cent next year. Current projections show inflation falling below 6 per cent next year," Goyal said. …

RBI Bulletin: Battle Against Surging Inflation Will Be Dogged, Prolonged
2 years, 2 months ago

RBI Bulletin: Battle Against Surging Inflation Will Be Dogged, Prolonged

ABP News  

The Reserve Bank of India in its article on Monday said that the battle against inflation will be dogged and prolonged, given the long and variable lags with which monetary policy operates. Retail inflation spiked to 7.41 per cent in September, remaining above central bank’s upper tolerance level of 6 per cent for the ninth month in a row. With …

Boxed in: The Hindu Editorial on need for inflation control as top policy priority
2 years, 2 months ago

Boxed in: The Hindu Editorial on need for inflation control as top policy priority

The Hindu  

The Reserve Bank of India’s rate decision on Friday was ultimately inevitable. RBI Governor Shaktikanta Das cited the ‘aggressive monetary policy actions and even more aggressive communication from advanced economy central banks’ as a third shock -- following the pandemic and Russia’s invasion of Ukraine — which he said had thrust the ‘global economy into the eye of a new …

‘Global economy in eye of storm but India withstood shocks’: RBI governor Shaktikanta Das | Top quotes
2 years, 2 months ago

‘Global economy in eye of storm but India withstood shocks’: RBI governor Shaktikanta Das | Top quotes

Hindustan Times  

The Reserve Bank of India on Friday hiked the key lending rate – the repo rate – by 50 basis points to a 3-year-high of 5.9 per cent. Announcing the move, which was among several decisions taken during the RBI's Monetary Policy Committee meet earlier this month, with the announcements being made today, Das also said that in the next …

Why the RBI is unlikely to slow down in curbing inflation
2 years, 2 months ago

Why the RBI is unlikely to slow down in curbing inflation

Live Mint  

Global growth is slowing rapidly, inflation is stubbornly high and central banks in developed nations are hiking interest rates by magnitudes not seen in decades. At other times, new data sources are introduced to make statistics more accurate, particularly to capture India’s informal sector better. Why the wait for new trade policy just got longer Busted: The myth of India …

Joblessness below pre-COVID levels: Finance Ministry
2 years, 3 months ago

Joblessness below pre-COVID levels: Finance Ministry

The Hindu  

Demand for work under the national rural employment guarantee scheme hit a two-year low in August, signalling that the recovering economy is creating more jobs in rural as well as urban India, the Union Finance Ministry said on Saturday. India’s inflation, the Ministry said, is “in control” and expected to moderate in coming months from the 7% mark in August …

Front-loaded rate increases needed to curb inflation, RBI officials
2 years, 3 months ago

Front-loaded rate increases needed to curb inflation, RBI officials

The Hindu  

The Reserve Bank of India said on Friday it will have to front-load its monetary policy to fight stubborn inflation and shield medium-term growth in the world's fifth-largest economy. Inflation in India has remained above the apex bank's tolerance level since January, prompting it to raise interest rates by a total of 140 basis points in the current cycle. "Front-loading …

Discover Related