Tag: rbi monetary policy

A heightened pace of policy tightening by central banks in advanced economies is increasing pressure on the RBI to continue front-loading rate hikes in order to maintain adequate interest rate differentials, analysts opined. Also, many financial experts expect the RBI to lower the GDP growth estimate to 7%. The Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC) is likely to lift the policy repo rate by 35-50 basis points (bps) on September 30, as it seeks to bring back elevated domestic inflation within its target range.

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) today(8 June 20 22) raised the repo rate by 50 basis points to 4.9 percent (bps), citing inflation concerns. It has also decided to remain focused on the withdrawal of accommodation to ensure that inflation remains within the target going forward while supporting growth. The committee has decided to retain the GDP growth estimate for FY23 at 7.2 percent, said RBI Governor Shaktikanta Das. On the assumption of a normal monsoon in 2022 and average crude oil price of $105 per barrel, inflation is projected at 6.7 percent in 2022-23, with Q1 at 7.5 percent; Q2 at 7.4 percent; Q3 at 6.2 percent; and Q4 at 5.8 percent, with risks evenly balanced. Read more

The Indian key benchmark indices gave up early gains today ( 8 April 2022)as the RBI kept the key repo rate unchanged, maintaining the status quo and its accommodative stance. The central bank, however, raised inflation projections for FY23 to 5.7 percent from 4.5 percent, while downgrading real GDP estimates to 7.2 percent from 7.4 percent. The BSE Sensex fell around 100 pts to 58,920 and the NSE Nifty was largely flat to 17,630 levels.

As the RBI kept the monetary policy rate unchanged at 4 percent and continued with the "accommodative" policy stance, the BSE Sensex quoted at 54,600 levels, up 100 points while the Nifty50 held 16,300-mark, up 7 points. Sectorally, all but IT and pharma stocks were in the green. The Nifty PSU Bank and Auto indices were the top gainers, up 0.6 percent each. More than 100 companies are slated to post their numbers on Friday including M&M, Voltas, Ujjivan SFB, Tata Power, Torrent Power, SAIL, Hindalco, Indigo Paints, BEML, and BEL. Further, on Saturday Divis Labs, Bank of Baroda, Dodla Dairy, Indiabulls Real Estate, and VRL Logistics will release quarterly earnings.