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Business News/ Economy / RBI Monetary Policy Meet Highlights: RBI delivers hawkish pause again; reiterates inflation target is 4% and not 2-6%
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RBI Monetary Policy Meet Highlights: RBI delivers hawkish pause again; reiterates inflation target is 4% and not 2-6%

RBI Monetary Policy Committee Meeting Live Updates: On expected lines, the RBI kept the repo rate unchanged at 6.5% in October monetary policy. The central bank also retained FY24 GDP growth forecast at 6.5%.

RBI Monetary Policy Committee Meeting Live Updates: Reserve Bank of India (RBI) Governor Shaktikanta Das kept the repo rate unchanged at 6.5%. (Image: AP)Premium
RBI Monetary Policy Committee Meeting Live Updates: Reserve Bank of India (RBI) Governor Shaktikanta Das kept the repo rate unchanged at 6.5%. (Image: AP)

RBI Monetary Policy Committee Meeting Live Updates: The Reserve Bank of India (RBI) announced its fourth bi-monthly monetary policy today, October 6. On expected lines, the RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) maintained status quo on rates and stance. The MPC decided unanimously to keep the policy repo rate unchanged at 6.50%. Consequently, the standing deposit facility (SDF) rate remains at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%. The MPC also decided by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.

06 Oct 2023, 09:43:00 AM IST

RBI MPC Meeting Live: Status quo unlikely to impact markets: VK Vijayakumar of Geojit

The important event of today, the MPC’s monetary policy, is unlikely to impact the markets since no changes are expected in policy rates or stance. From the market perspective, the more important thing will be the US jobs data expected tonight. If the jobs data comes strong the market will react negatively discounting a rate hike by the Fed in the coming policy meeting. On the other hand, if the jobs data is weak, the market will rally discounting a pause by the Fed, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Expected Q2 results will influence stock prices in the coming days. Financials, particularly banking, automobiles, hotels, real estate, cement and capital goods will do well. A possible surprise may come from IT in the form of higher order bookings. Even if the results are expectedly poor, the stocks may rebound on the back of better orders and commentary, he added.

06 Oct 2023, 09:33:09 AM IST

RBI MPC Meeting Live: Banking stocks gain ahead of RBI Policy

Interest rate sensitive banking stocks traded higher ahead of the announcement of Reserve Bank of India’s (RBI) monetary policy today. The Bank Nifty index gained 0.20% to trade above 44,300 level.

The top banking gainers included IndusInd Bank, Bank of Baroda, AU Small Finance Bank, IDFC First Bank, among others that rose 0.5-1%.

The RBI is widely expected to keep its policy rates unchanged while adhering to its stance of ‘withdrawal of accommodation.’ 

06 Oct 2023, 09:25:30 AM IST

RBI MPC Meeting Live: Rate pause supportive of the real estate sector: Shishir Baijal

A repo rate pause will be supportive of the real estate sector in maintaining its current momentum. With the last few revisions, the repo rate has gone up by 250 bps, resulting in 160 bps hike in the base lending rate, with the last three revisions being completely passed on to the home buyers. This has started to impact housing demand, especially in the affordable segment. The mid segment too has seen growth moderating in the last few quarters. A further increase in the repo rate could potentially dampen buyers’ sentiment and impact housing affordability, said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

We expect the Reserve Bank of India’s Monetary Policy Committee (RBI MPC) to keep the repo rate unchanged to remain supportive of growth. However, the central bank will likely maintain a precautionary stance because of the inflationary pressure arising from external factors such as rising crude prices and Indian currency, which is at an all-time low, he added.

06 Oct 2023, 09:17:41 AM IST

RBI MPC Meeting Live: Sensex, Nifty 50 open higher ahead of RBI Policy

The Indian stock market indices Sensex and Nifty 50 opened higher on Friday ahead of the announcement of the RBI policy. The Sensex gained over 200 points at 65,831, while the Nifty 50 traded 0.4% higher above the 19,600 level.

All the sectoral indices traded higher led by Nifty Metal, Nifty Auto, Nifty Pharma and Nifty Bank. Catch Live Market Updates here

06 Oct 2023, 09:04:45 AM IST

RBI Monetary Policy Committee Meeting Live: From repo rate to MPC stance, here's what D-Street expects amid global headwinds

Reserve Bank of India (RBI) Governor Shaktikanta Das will unveil its fourth monetary policy decision of fiscal 2023-24 today after a two-day review that began earlier this week. Market analysts and economists on D-Street widely expect the central bank to keep rates unchanged on India's easing inflation print and maintain its hawkish policy stance.

Majority of economists estimate that the RBI would keep its key repo rate unchanged at 6.50 per cent at the conclusion of the MPC meeting, with only a few expecting a 25 basis point hike. Analysts also do not expect the central bank to change its stance from ‘withdrawal of accommodation’. However, the recent uptick in international crude oil prices are likely to keep the MPC's focus on India's inflation projections in the forthcoming quarters. Read full report here

06 Oct 2023, 08:53:33 AM IST

RBI Monetary Policy Committee Meeting Live: RBI to prioritise supporting growth, says CARE Ratings

Given the current circumstances, the RBI is likely to prioritise supporting economic growth, especially during the festive season, while remaining cautious about inflation. Therefore, we anticipate that the RBI will keep its policy rates unchanged, with a unanimous decision, while adhering to its stance of ‘withdrawal of accommodation.’

We do not anticipate any further rate hikes by the RBI in this fiscal year. The MPC is expected to consider rate cuts after the first quarter of the upcoming fiscal year.

06 Oct 2023, 08:42:12 AM IST

RBI Monetary Policy Committee Meeting Live: Experts recommend these five shares ahead of RBI policy meeting

According to stock market experts, Dalal Street is expecting status quo on interest rates and hence rate sensitive segments like banking, auto, realty and consumer durable segments have started to give big movement ahead of the RBI policy meeting outcome.

They said that Q2 results for FY2023-24 would be beginning from next week. Hence, one should buy stocks in such a way that they benefit from both RBI MPC meeting outcome and quarterly results season. They advised investors to buy stocks of the above mentioned sectors that deals in premium product segments. Read here

06 Oct 2023, 08:29:39 AM IST

RBI Monetary Policy Committee Meeting Live: Inflation in H1FY24 to be 5%-5.5%: Deepak Agrawal of Kotak Mahindra AMC

Inflation for the first half of 2024 is expected to be in the band of 5-5.5% and based on the RBI Governor's comment last month that 'monetary policy should be forward looking', we expect RBI to continue with a pause in policy rates.

Further given the rise in global bond yields, dollar strength and higher crude oil prices we expect RBI to continue with a ‘withdrawal of accommodation’ policy stance. Core liquidity in the system is likely to get tightened in the second half, hence we don't expect RBI to take permanent liquidity withdrawal measures, said Deepak Agrawal, CIO – Debt, Kotak Mahindra Asset Management Company.

06 Oct 2023, 08:14:41 AM IST

RBI Monetary Policy Committee Meeting Live: Policy stance may be changed to Neutral: Hitesh Suvarna of JM Financial

We expect the MPC to hold the policy rates considering the volatile component in the CPI basket i.e. the vegetables prices have normalized which is expected to reflect in Sep CPI print. We pencil in 5.6% in September 2023. Considering the deficit situation in the domestic liquidity during the last week, the RBI may change the policy stance to “neutral", said Hitesh Suvarna, Co Head PMS Group at JM Financial.

06 Oct 2023, 08:01:54 AM IST

RBI Monetary Policy Committee Meeting Live: Check out key takeaways from August RBI Policy

Here are key takeaways from the previous RBI Policy in August:

Interest Rates:

- Repo rate unchanged at 6.5%

- Standing deposit facility (SDF) rate remains at 6.25%

- Marginal standing facility (MSF) rate and Bank Rate maintained at 6.75%

- CRR at 4.5%

GDP Projections:

Real GDP growth projection for FY224 retained at 6.5%

- GDP forecast for Q1FY24 at 8%

- GDP forecast for Q2FY24 at 6.5%

- GDP forecast for Q3FY24 at 6%

- GDP forecast for Q4FY24 at 5.7%

- GDP growth for Q1FY25 is projected at 6.6%

Inflation Forecast

- CPI inflation forecast for FY24 raised to 5.4% from 5.1%

- CPI inflation forecast for Q2FY24 raised to 6.2% from 5.2%

- CPI inflation forecast for Q3FY24 raised to 5.7% from 5.4%

- CPI inflation forecast for Q4FY24 retained at 5.2%

- CPI inflation forecast for April-June 2024 pegged at 5.2%

Liquidity Measures

All scheduled banks to maintain an incremental cash reserve ratio (I-CRR) of 10% on the increase in their net demand and time liabilities (NDTL) between May 19, 2023, and July 28, 2023.

Revision in IDF framework

The regulatory framework for Infrastructure Debt Funds (IDFs) has been revised.

The key changes in the revised framework are: (i) withdrawal of the requirement to have a sponsor for the IDFs, (ii) allowing IDFs to finance toll-operate-transfer (ToT) projects as direct lenders, (iii) permitting IDFs to raise funds through ECBs, and (iv) making tri-partite agreements optional for PPP projects.

On floating-interest loans

Proposal to put in place a transparent framework for reset of interest rates on floating-interest loans.

UPI

- To launch Conversational Payments on UPI

- Transaction limit of UPI Lite raised to 500 from 200

- To introduce offline payments using Near Field Communication (NFC) technology

06 Oct 2023, 07:50:57 AM IST

RBI Monetary Policy Committee Meeting Live: RBI kept repo rate unchanged in August

The Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5% in its August monetary policy. In its previous three policies, RBI’s Monetary Policy Committee (MPC) had maintained a status quo on interest rates. Meanwhile, RBI Governor Shaktikanta Das has raised the repo rate by 250 basis points (bps) since May 2022.

06 Oct 2023, 07:39:10 AM IST

RBI Monetary Policy Committee Meeting Live: RBI likely to hold interest rates, policy stance-Barclays

The monetary policy committee (MPC) of the Reserve Bank of India (RBI) is likely to maintain a status quo on interest rates thanks to easing core inflation amid steady growth, but the central bank is unlikely to sound dovish at its October 6 meeting, according to analysts at Barclays.

"The RBI will have little reason to change the current policy settings, and we expect the MPC to keep the repo rate unchanged at 6.5 per cent at the October 6 meeting, flagging waning core inflation, steady economic activity, and some risks of more supply-related price shocks, providing little cue for a change in policy thinking," Barclays said in a note. Read here

06 Oct 2023, 07:29:09 AM IST

RBI Monetary Policy Committee Meeting Live: Will high crude oil prices impact MPC's decision?

Analysts on D-Street widely expect the central bank to keep rates unchanged on India's easing inflation print and maintain its hawkish policy stance on Friday. However, global headwinds such as high crude oil prices and surging US bond yields have posed new threats to the economy. 

International crude oil prices surged to 10-month highs after Saudi Arabia and Russia - part of the Organisation of Petroleum Exporting Countries and its allies (OPEC+), extended voluntary production cuts of 1.3 million barrels per day to the end of the year, raising supply concerns in oil markets. Read here

06 Oct 2023, 07:14:31 AM IST

RBI Monetary Policy Committee Meeting Live: RBI to reiterate caution, says Madhavi Arora

The upcoming MPC policy will see the RBI reiterating caution, amid a fluid global narrative and as markets reprice ‘higher-for-longer’. As global financial conditions transmit with a lag, there could be further volatility ahead. Even as domestic inflation is likely to meet policy targets by end-FY24, elevated DM rates and record-low interest differentials pose a headwind for the RBI.

Although relative FX adjustments can/should act as shock absorbers, the speed and duration of FX adjustments could still be tricky. While some may argue for conventional increase in policy rates, we think orderly FX adjustment would be the preferred path. The liquidity toolkit is likely to be kept active with tactical use of FX swaps, VRRR and even I-CRR/CRR, said Madhavi Arora, Lead Economist, Emkay Global Financial Services.

06 Oct 2023, 06:45:42 AM IST

RBI Monetary Policy Committee Meeting Live: Five analysts have this to say on repo rate action

The Reserve Bank of India's Monetary Policy Committee (MPC) meeting is underway with the outcome due tomorrow on Friday. The RBI MPC is likely to maintain a status quo on interest rates thanks to easing core inflation amid steady growth.

The RBI may also keep both its growth and inflation forecasts unchanged on an annual basis. Experts say investors' focus may also be on the medium-term forecasts laid out in the October Monetary Policy Report.

Mint collated the views of five analysts on what the RBI can decide on repo rate and monetary policy stance. Read here what they said.

06 Oct 2023, 06:26:09 AM IST

RBI Monetary Policy Committee Meeting Live: When and where to watch

The Reserve Bank of India (RBI) Governor Shaktikanta Das-led Monetary Policy Committee meeting ends today. The RBI policy’s repo rate decision will be announced later today. RBI Governor Shaktikanta Das will deliver his monetary policy statement at 10:00 am. You can watch the RBI Governor speech on the official YouTube channel of RBI on the link given below.

RBI MPC is likely to deliver hawkish pause and keep the repo rate unchanged at 6.5%. The central bank has raised the repo rate by 250 basis points (bps) since May 2022.

06 Oct 2023, 06:16:23 AM IST

RBI Monetary Policy Committee Meeting Live: RBI policy decision to be announced today

The Reserve Bank of India (RBI) is set to announce its fourth bi-monthly monetary policy today, October 6. The three-day meeting of RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) began on Wednesday, October 4, and its outcome is due on Friday.

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