RBI Monetary Policy

In a 4:2 majority decision, the Monetary Policy Committee of the Reserve Bank of India has hiked the Repo rate to 6.5 per cent. It has also projected a GDP ...

[the MPC hiked the Repo rate by 35 basis points](https://indianexpress.com/article/explained/explained-economics/reserve-bank-of-india-rate-hike-explained-8310486/) in a bid to rein in retail inflation. “This (hike) is known to the market and is unlikely to have any meaningful impact on the market. [Federal Reserve](https://indianexpress.com/article/explained/everyday-explainers/what-is-fed-and-what-role-does-it-play-us-economy-7824639/) chief Jerome Powell’s remarks on Tuesday were taken positively by the market. The RBI has projected GDP growth for the next fiscal (FY2024) at 6.4 per cent. Marginal cost of funds-based lending rates (MCLR), which accounts for 49.2 per cent of the loans portfolio of banks, are also expected to move up. [Fed](https://indianexpress.com/article/explained/everyday-explainers/what-is-fed-and-what-role-does-it-play-us-economy-7824639/),” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Inflation is expected to be 5.3 per cent in FY24. The external benchmark linked lending rate (EBLR) of banks will rise by 25 bps — one basis point is one-hundredth of a percentage point— as such loans are linked to the Repo rate. Lending rates of banks are expected to go up as the cost of funds is expected to rise further. Retail inflation is expected to be 5.3 per cent in FY24, the MPC said. The RBI decision is expected to make all external benchmark linked (based on the Repo rate) loans costlier immediately. As much as 43.6 per cent of the total loans are now linked to the Repo rate.

RBI Policy February 2023: The Reserve Bank of India Governor Shaktikanta Das announced a hike in repo rate for the sixth time in a row, by 25 bps to 6.50% ...

आरबीआई के गवर्नर शक्तिकांत दास (RBI Governor Shaktikanta Das) ने बताया कि रेपो रेट में 0.25 फीसदी का ...

आज आरबीआई की मॉनिटरी पॉलिसी के एलानों से पहले बैंक निफ्टी के लगभग सभी बैंक शेयर हरे निशान में कारोबार कर रहे थे और बैंक निफ्टी में इसके दम पर उछाल देखा जा रहा था. आरबीआई गवर्नर ने कहा कि वित्त वर्ष 2023 के लिए भारत की जीडीपी का अनुमान 7 फीसदी रखा गया है. रिजर्व बैंक की मौद्रिक नीति समिति की बैठक सोमवार 6 फरवरी को हुई थी और आज 8 फरवरी को इसके फैसलों का एलान कर दिया गया है. इस तरह लगातार 6 बार दरें बढ़ाकर आरबीआई ने कुल 2.50 फीसदी का इजाफा रेपो रेट में कर दिया है और ये 6.50 फीसदी पर आ गया है. भारतीय रिजर्व बैंक ने चालू वित्त वर्ष 2022-23 के लिए जीडीपी की वृद्धि दर (GDP) के अनुमान को 6.8 फीसदी से बढ़ाकर सात फीसदी कर दिया है. रेपो रेट में ये बढ़ोतरी लगातार छठी बार है जब क्रेडिट पॉलिसी में आरबीआई ने इजाफा किया है.

The central bank will likely settle for a 25 basis points (bps) repo rate hike in its monetary policy committee meeting this week, as per experts.

[Do you know when old and new tax regimes give the same tax liability? TRENDING The central bank had failed to keep the inflation rate below 6 per cent for three consecutive quarters from January 2022. Thus, the RBI may remain focused on the withdrawal of accommodation and raise the policy rate by 25 basis points.” Kotak Institutional Equities said in its report that global inflation is gradually beginning to turn benign despite inflation being well above every central bank’s target. The central bank has increased the short-term lending rate by 225 bps to contain inflation caused mostly due to global supply chain disruption following the Ukraine war.

The Reserve Bank of India's rate-setting panel slowed the pace of interest-rate increases for a second straight meeting in February while allowing itself ...

With interest rates at a seven-year high and inflation under the upper tolerance limit RBI will now keep an eye on global central banks actions and is expected to take its next steps. The market seems to be slightly disappointed because the RBI has continued to maintain its withdrawal of accommodation stance as against an expectation of a shift to a neutral stance. It was a close call in the current round to choose between a pause and a 25 basis point hike, as reflected in the MPC voting pattern with two of the six member committee voting for a pause. While this is appropriate posturing at a time of elevated global risks, we believe the policy arithmetic has changed from ‘de-facto’ policy tightening, to a distinctly data dependent mode. Rajani Sinha, Chief Economist, CareEDGE: While RBI has hiked the policy interest rate by 25 bps in line with market expectations, they have not indicated an end to rate hiking cycle. On the other hand, if inflation indeed continues to soften in line with the RBI’s current expectation, the MPC will likely feel more comfortable moving into a long pause in the next quarter There is no indication of any pause in the rate hike and the likelihood of further moderate hikes in the repo rate remains, depending on the upcoming data prints. Hence, they have continued with the stance of ‘withdrawal of accommodation’, while reiterating its concern on sticky core inflation. While the MPC has projected a relatively benign CPI inflation level of 5.3% in FY24, it has declared its intent to “break the persistence of high core inflation”. The current rate hike of 25bp was in line with our expectations, although we believe that the time is ripe for a change of stance to ‘neutral’ from ‘withdrawal of accommodation’. The RBI will likely stay in search of more decisive signs of a sustained disinflation in the coming months. Aurodeep Nandi, India Economist and Vice President at Nomura: As in cricket test matches, the key question is whether the RBI is now set to declare the innings on its rate hike cycle.

RBI Monetary Policy: The RBI on Tuesday projected India's economic growth to slow down to 6.4 per cent in FY24 from 7 per cent in the current fiscal- read ...

The CAD is expected to moderate in H2:2022-23 and remain eminently manageable and within the parameters of viability.11 The reduction in the size of the rate hike provides the opportunity to evaluate the effects of the actions taken so far on the inflation outlook and on the economy at large. It is now proposed to expand the scope of TReDs by (i) providing insurance facility for invoice financing; (ii) permitting all entities/institutions undertaking factoring business to participate as financiers in TReDS; and (iii) permitting re-discounting of invoices (that is, developing a secondary market in TReDS). In a fundamental sense, the movements of the rupee reflect the resilience of the Indian economy. Monetary policy will continue to be agile and alert to the moving parts in the inflation trajectory to effectively address the challenges to the economy. On the assumption of a normal monsoon, CPI inflation is projected at 5.3 per cent for 2023-24, with Q1 at 5.0 per cent, Q2 at 5.4 per cent, Q3 at 5.4 per cent and Q4 at 5.6 per cent. This was due to a softening in food inflation on the back of a sharp deflation in vegetable prices, which more than offset the inflationary pressures from cereals, protein-based food items and spices. Inflation is expected to average 5.6 per cent in Q4:2023-24 while the policy repo rate is 6.50 per cent. Based on an assessment of the macroeconomic situation and its outlook, the MPC decided by a majority of 4 members out of 6 to increase the policy repo rate by 25 basis points to 6.50 per cent, with immediate effect. This calls for a deeper understanding of the structural changes in the global economy and inflation dynamics, and their implications for the conduct of monetary policy. In contrast to the Great Moderation era of the 1990s and the early years of this century, monetary policy was confronted with an unprecedented contraction in economic activity followed by a surge in global inflation. The world is looking to India, now at the helm of G-20, to energise global partnership in several critical areas.

RBI monetary policy highlights: The Indian central bank raised the benchmark interest rate again, taking it to the highest in four years.

"The 25 bps hike in policy repo rate by the Reserve Bank of India (RBI) is in line with expectations. “Considering domestic inflation outlook, growth prospect of the economy and emerging global scenario, RBI has decided to hike the policy rates by 25 bps. The RBI will likely stay in search of more decisive signs of a sustained disinflation in the coming months. "Repo hike of 25 bps is on the expected lines. The MPC expects growth at 6.4 percent in FY24, higher than the average market expectations and inflation at 5.3 percent. Evidently, the policy is focused more on managing inflation, even though the recent retail inflation readings are showing signs of moderation.

Monetary Policy 2023-24 RBI ने नई मौद्रिक नीति का ऐलान कर दिया है। इसमें GDP ग्रोथ 6.4 प्रतिशत रहने का ...

चौथी तिमाही में GDP ग्रोथ - 5.8 प्रतिशत तीसरी तिमाही में GDP ग्रोथ - 6.0 प्रतिशत दूसरी तिमाही में GDP ग्रोथ - 6.2 प्रतिशत पहली तिमाही में GDP ग्रोथ - 7.8 प्रतिशत तीसरी तिमाही में खुदरा मुद्रास्फीति- 5.4 प्रतिशत दूसरी तिमाही में खुदरा मुद्रास्फीति- 5.4 प्रतिशत