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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, 02:28:25 PM IST

RBI Policy Meeting Highlights: Check out key takeaways from RBI Policy

Here are key takeaways from RBI Policy:

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 FY24 retained at 6.5%
- GDP forecast for Q2FY24 unchanged at 6.5%
- GDP forecast for Q3FY24 unchanged at 6%
- GDP forecast for Q4FY24 unchanged at 5.7%
- GDP growth forecast for April-June 2024, or Q1FY25, unchanged at 6.6%

Inflation Forecast

RBI maintains CPI inflation forecast for FY24 at 5.4%
- CPI inflation forecast for Q2FY24 raised to 6.4% from 6.2%
- CPI inflation forecast for Q3FY24 cut to 5.6% from 5.7%
- CPI inflation forecast for Q4FY24 left unchanged at 5.2%
- CPI inflation forecast for April-June 2024, or Q1FY25, unchanged at 5.2%

Developmental and Regulatory Policies 

Gold loan limit for UCBs doubled

With a view to incentivising urban co-operative banks (UCB) that have met the prescribed PSL targets as on March 31, 2023, RBI has decided to increase the monetary ceiling of gold loans that can be granted under the bullet repayment scheme from 2 lakh to 4 lakh for such UCBs who have met the overall PSL target and sub targets as on March 31, 2023.

New channels for Card-on-File Tokenisation

RBI proposed to introduce Card-on-File (CoF) token creation facilities directly at the issuer bank level. This measure will enhance convenience for cardholders to get tokens created and linked to their existing accounts with various ecommerce applications.

PM Vishwakarma included under PIDF scheme; tenure extended by two years

The PM Vishwakarma will be included under the Payments Infrastructure Development Fund (PIDF) Scheme and the tenure of the scheme will be extended by another two years up to December 31, 2025.

Framework for recognition of SROs for Regulated Entities

RBI to issue an omnibus framework for recognising Self-Regulatory Organisations (SROs) for various Regulated Entities (REs) of the Reserve Bank. The omnibus SRO framework shall prescribe the broad objectives, functions, eligibility criteria, governance standards, etc., which will be common for all SROs, irrespective of the sector.

Framework for Projects Finance

RBI to issue a comprehensive regulatory framework for projects under implementation applicable for all regulated entities.

Credit Concentration Norms

RBI permits NBFCs in Middle Layer and Base Layer to offset their exposures with eligible credit risk transfer instruments.

06 Oct 2023, 02:20:54 PM IST

RBI MPC Meeting Live: How RBI's interest rate pause impacts this year's Diwali housing sales

The Reserve Bank of India (RBI) kept the repo rate unchanged at 6.50 per cent for fourth time in a row. This has gone down well among the housing market. Analysts say that the decision has come as relief for both new borrowers and existing housing loan borrowers. Becuase intrest rate pause means no rise in home loan EMI on both existing home loans and new loans. Read full report here

06 Oct 2023, 02:02:18 PM IST

RBI MPC Meeting Live: Equities to have serious competition from bonds; Umesh Mehta of SAMCO Mutual Fund

It is indeed a turning pitch as far as inflation is concerned for RBI but on the other side global market forces are scaring all the central bankers on higher bond yields, which are getting stronger by the day. The current pause wouldn’t last long, for that matter, for any central banks. The rates are likely to move higher before the actual pivot happening sometime in the middle of the next year. So, equities will have serious competition from bonds going forward, said Umesh Kumar Mehta, Chief Investment Officer, SAMCO Mutual Fund.

06 Oct 2023, 01:53:17 PM IST

RBI MPC Meeting Live: RBI status quo to maintain existing momentum of residential real estate demand: Shishir Baijal

Continuation of pause in the Repo rate was much needed albeit looming inflationary pressure arising from – rising crude prices and rupee depreciation. By pausing the policy rate, the central bank continues to maintain its focus on economic growth, which is facing headwinds primarily from external factors, such as slowdown in global growth, high energy prices and geopolitical tensions; and remains cautious of inflationary pressure as well.

Measures to reduce excess liquidity and improve transmission of earlier policy rate hike measures align with price stability goals of the central bank. The decision will continue to maintain the existing momentum of residential real estate demand in India. Since the interest rate upcycle, the repo rate has been hiked by 250 bps, resulting in 160 bps rise in home loan rates. Since then, although the overall housing demand has remained upbeat, the lower housing segment or the affordable housing demand has witnessed a deceleration due to a substantial rise in the borrowing costs and other challenges. The stance today should be considered as a big relief for the housing sector of the country which has shown tremendous strength in the face of headwinds over the last year, said Shishir Baijal, Chairman & Managing Director, Knight Frank India.

06 Oct 2023, 01:41:23 PM IST

RBI MPC Meeting Live: Expect September inflation at 5.3%, full year to average at 5.4%: Abheek Barua

As expected, the RBI delivered a status quo policy, keeping both its stance and policy rate unchanged. The central bank also kept its growth and inflation forecast unchanged for FY24 continuing to sound cautious on inflationary risks.

10-year yield is likely to trade higher with the door being opened for OMO sales. Moreover, elevated US yields could also continue to exert pressure in the near-term. For macro indicators, we expect September inflation print at 5.3% and full year to average at 5.4%, said Abheek Barua, Chief Economist and Executive Vice President, HDFC Bank.

06 Oct 2023, 01:37:20 PM IST

RBI MPC Meeting Live: RBI desists from providing dovish bent to policy: Indranil Pan

This policy was on expected lines with no change in the policy rate as also the stance. Even as food inflation and core inflation had been moderating, the RBI rightly desisted from providing any dovish bent to the policy communication. And there is a clear reverberation of the previous policy – that the RBI will only be happy if they are able to hit the 4% mark on inflation on a durable basis.

Unexpected by all, the RBI announces that OMO sales also becomes a policy tool for the future in its efforts to suck out liquidity. This is important even from a longer perspective, given that India could be expecting large FX flows in FY25 on the back of JPM bond index inclusion, said Indranil Pan, Chief Economist, YES Bank.

06 Oct 2023, 01:34:35 PM IST

RBI MPC Meeting Live: No change in approach for banking licence to fintechs

We have not changed our approach to fintechs with respect to banking licences. We have given a no-objection (NOC) for one of the NBFCs to merge with North East Small Finance Bank. We carry out a fit and proper assessment and take a call accordingly, said RBI Deputy Governor M Rajeshwar Rao.

06 Oct 2023, 01:30:00 PM IST

RBI MPC Meeting Live: Rate cut in the near future remains unlikely, says Dhiraj Relli

India’s 10-yr Gsec yield shot up to 7.29% from previous close of 7.21% on fears that rate cuts may get delayed based on the repeated emphasis of the MPC on bringing inflation down to 4%. 

Although RBI expects significant easing of inflation in September, food inflation is expected to remain high. Consequently, a rate cut in the near future remains unlikely. While this may unnerve the bond markets to some extent, the equity markets, though slightly disappointed, have other triggers in the near term to track and worry about, said Dhiraj Relli, MD & CEO, HDFC Securities.

06 Oct 2023, 01:22:21 PM IST

RBI MPC Meeting Live: OMO sales to weigh on yields in near term, says Amit Somani of Tata Asset Management

RBI will maintain tighter liquidity conditions to address higher Inflation risks. Short-term rates are likely to remain elevated in near term factoring in tighter liquidity conditions going forward, said Amit Somani, Senior Fund Manager – Fixed Income, Tata Asset Management.

RBI formally unleashing Bond Open Market Operations (OMO) sale tool in policy to manage liquidity would weigh on yields in near term. This tool, however, may be used only judiciously to deal with large inflows causing banking system liquidity to stay in surplus zone, he added.

RBI would target Inflation rate of 4% and not 2%-6% range, again signals the policy rates to remain higher for longer until Inflation is projected to come below 4%. RBI’s sharp focus on bringing down inflation is positive for markets in the medium-to-long term, said Somani.

06 Oct 2023, 01:16:50 PM IST

RBI MPC Meeting Live: Policy narrative hinged to inflation uncertainty, liquidity management: Madhavi Arora

The RBI reiterated caution and the current policy narrative is still more hinged to inflation uncertainty and liquidity management than on the fluid and uncertain global narrative 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. Amid the changing external dynamics, the policy prerogative would ensure financial stability, which may possibly even precede inflation management in coming months," said Madhavi Arora, Lead Economist, Emkay Global Financial Services.

06 Oct 2023, 01:13:56 PM IST

RBI MPC Meeting Live: Expect rate cut in Q1FY25, says Prasenjit Basu of ICICI Securities

Unsurprisingly, the RBI’s MPC decided to keep its policy rate unchanged at 6.5% and retained its stance of ‘withdrawal of accommodation’. The key change is a much more benign inflation forecast, suggesting that the RBI expects CPI inflation to abate to well below 6% YoY in Sep’23, and to stay at 5.6% YoY in Oct-Dec’23 and 5.2% YoY in Jan-Mar’24. We continue to expect the next policy move to be a rate cut in Q1FY25, said Prasenjit Basu – Chief Economist, ICICI Securities.

06 Oct 2023, 01:12:11 PM IST

RBI MPC Meeting Live: Card-on-file tokenization a game-changer for both cardholders and the financial industry: Rajsri Rengan of FIS

In extending the Payments Infrastructure Development Fund scheme and broadening its coverage to include PM Vishwakarma scheme beneficiaries, the Reserve Bank of India (RBI) has demonstrated a proactive approach towards bolstering the nation's digital payments ecosystem. This move aligns with the ever-evolving needs of the industry and further paves the way for financial inclusion and a crucial support to artisans and craftspeople through end-to-end assistance.

The proposal to introduce card-on-file tokenization directly at the bank level is a game-changer for both cardholders and the financial industry as a whole. It enhances convenience and security, reducing the friction associated with digital transactions. This forward-looking initiative reflects the RBI's commitment to fostering a robust and secure payments landscape in India, said Rajsri Rengan, India Head of Development, Banking and Payments, at FIS.

06 Oct 2023, 01:10:01 PM IST

RBI MPC Meeting Live: Indian bonds to trade rangebound with cushion at 7.25%-7.30% level: Lakshmi Iyer

It’s a déjà vu at RBI MPC to stay status quo on key benchmark rates. There is a sense of caution visible due to inflation rise tending to act as a major macro headwind. 

We do expect downward movement in CPI in the coming months, hence bond markets may get some breather over the medium term as some section of markets was expecting upward revision. No new announcements on the liquidity front may offer some solace to the short end of the yield curve to remain anchored.

OMO sales may be undertaken if need be, but that is something markets are used to, but with auction and OMO sales not meeting with commensurate demand, bond yields could stay elevated near term. What matters is how US treasuries behave going forward – we have seen levels recede from ~4,90% to current 4.70%. Crude is less rude and has shown some easing lately, yet not fully out of the woods. 

We expect Indian bonds to trade range bound with cushion at ~7.25%-7.30% levels. With policy decision out of the way, Indian equities will turn attention to earnings season which has just begun. Expect volatilities and consolidation as we move ahead in this quarter, said Lakshmi Iyer, CEO-Investment & Strategy, Kotak Alternate Asset Managers Ltd.

06 Oct 2023, 12:58:56 PM IST

RBI MPC Meeting Live: Will shift to accommodation if inflation goes below 4%: RBI Dy Guv Patra

The MPC is focused on aligning inflation outcomes with the target. So a tendency of the inflation numbers to move towards 4% is what we are looking for. If it goes below 4% on a durable basis, then we will shift to accommodation, said RBI Deputy Governor Michael Patra.

06 Oct 2023, 12:48:37 PM IST

RBI MPC Meeting Live: Cancellation of urban co-operative banks’ licences is never sudden: RBI Dy Guv Rao

Cancellation of licences of urban co-operative banks is never a sudden development. Their licence is cancelled only when measures to improve their health and rehabilitate them do not work, said RBI Deputy Governor M Rajeshwar Rao.

06 Oct 2023, 12:30:42 PM IST

RBI MPC Meeting Live: 87% of ₹2,000 currency notes received so far: RBI Governor

So far, we have got back 2,000 notes worth about 3.43 lakh crore, and about 12,000 crore are left. 87 percent of it has come as bank deposits, says RBI Governor Shaktikanta Das.

06 Oct 2023, 12:20:57 PM IST

RBI MPC Meeting Live: OMO sales to be done through auctions

Liquidity will be actively managed, says RBI Governor Shaktikanta Das adding that the OMO sales will be done through auctions and not via NDS-OM platform. The RBI will notify the auction, he said.

“Our liquidity management has nothing to do with bond yields going up in advanced economies," Das said.

06 Oct 2023, 12:17:25 PM IST

RBI MPC Meeting Live: OMO sales part of our domestic liquidity management: RBI Governor

We will watch evolving trends on liquidity and notify OMO as and when it becomes necessary. OMO sales is part of our domestic liquidity management. We do not propose to announce any OMO calendar at the moment, said RBI Governor Shaktikanta Das.

Our liquidity management has nothing to do with bond yields going up in developed economies, Das said in post-policy press conference.

06 Oct 2023, 12:03:48 PM IST

RBI MPC Meeting Live: Unchanged repo rate is a festive bonanza for homebuyers, says Anuj Puri

The unchanged repo rate is a festive bonanza for homebuyers and gives them yet another opportunity to make cost-optimized home purchases. If we consider the present trends, the overall consumer market looks bullish across sectors, particularly the automobile and housing markets, which in many ways reflect the health of the economy. We are entering the festive quarter with a very strong momentum in housing sales, and unchanged interest rates will act as a major catalyst for growth in the residential market. 

As per ANAROCK Research, housing sales across the top 7 cities created a new peak in Q3 2023 (despite the usually slow monsoon quarter) and stood at 1,20,280 units as against over 88,230 units sold in Q3 2022, thus recording 36% yearly growth. Thanks to the stable repo rate and the resultantly stable home loan interest rates, we can expect the momentum to continue, said Anuj Puri, Chairman - ANAROCK Group.

06 Oct 2023, 12:01:20 PM IST

RBI MPC Meeting Live: RBI Governor's Kapil Dev Policy: Playing the economic pitch on merit, says Nilesh Shah

The RBI Governor mentioned that the pitch is turning and we will play the ball on merit. Today's policy is like “Kapil Dev Policy". It will manage liquidity, inflation, growth, rupee and financial sector stability in an appropriate equilibrium like a legendary all rounder Kapil Dev managed bowling, batting, fielding and captain ship. 

The RBI has worked hard to create a balance between growth and inflation setting an example for the rest of the world. This policy continues to take that hard work forward, said Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company. Read here

06 Oct 2023, 11:56:43 AM IST

RBI Policy Reaction: Anitha Rangan, Economist, Equirus 

Anitha Rangan, Economist, Equirus noted down three statements from the RBI policy that give us a very hawkish outlook: a) comment that tight global monetary stance could persist higher than expected b) food inflation pressures may not see sustained easing and c) reserves position continuing to decline with the Sept-23 overall having seen ~$12 bn of decline to contain rupee volatility suggest that RBI is on a vigilant watch mode. 

While batting defensively on a turning pitch, RBI is remaining very careful. As long as currency is maintained, a long pause is the call. However on a turning pitch, a surprise shot can emerge at any time, Rangan said.

06 Oct 2023, 11:50:41 AM IST

RBI MPC Meeting Live: Retail investors should lock funds in long-term fixed deposits, says Anshul Gupta of Wint Wealth

RBI will likely wait and watch for the next couple of quarters before it decides to reduce the interest rates.

From retail investors' standpoint, we are almost at the peak of the interest rate hike cycle. Thus, over the next 3-6 months, retail investors should lock their funds in long-term fixed deposits at higher interest rates. Depending on the goal and timeframe of their investment, they can stagger this investment into a few smaller FDs across different commercial and small finance banks, as well as NBFCs. 

On the other hand, bond markets have already been discounting rate cuts, and 10-year G-Sec yields are down by 30 bps from this year’s peak levels. Home loan borrowers would do well to stick to their floating interest rate loans for now, even if fixed-rate loans are available at some discount, said Anshul Gupta, Co-Founder and Chief Investment Office, Wint Wealth.

06 Oct 2023, 11:47:23 AM IST

RBI MPC Meeting Live: Sensex, Nifty 50 trade in green after RBI policy

The Indian stock market indices traded higher on Friday after the Reserve Bank of India (RBI) kept policy rates unchanged in its October monetary policy. The RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) decided unanimously to keep the policy repo rate unchanged at 6.50% The central bank also kept the inflation forecast for FY24 unchanged at 5.4% and GDP growth estimates for FY24 unchanged at 6.5%.

The equity markets reacted positively to the RBI policy and now the market’s attention is anticipated to shift towards global market dynamics.

The Sensex was trading 249.28 points, or 0.38%, higher at 65,880.85, and the Nifty 50 was up 76.95 points, or 0.39%, at 19,622.70. Catch Live Market Updates here

06 Oct 2023, 11:45:53 AM IST

RBI MPC Meeting Live: Rate-lowering cycle likely from H2CY24, says Nish Bhatt

“The RBI has kept interest rates on hold for the fourth time in a row, which is a prudent move given inflationary trends largely driven by food prices. The economic activities remain resilient so far, however, headwinds from weak global demand, volatility in the global financial markets, and uneven monsoon, pose risks to the future outlook. 

Though, we can expect a rate-lowering cycle likely from H2CY24, depending on macroeconomics stability and no global shocks," said Nish Bhatt, Founder & CEO, Millwood Kane International.

06 Oct 2023, 11:38:28 AM IST

RBI MPC Meeting Live: Interest rates to remain elevated, impact rate-sensitive sectors: Vinod Nair of Geojit 

On a positive note, interest rates haven't increased as anticipated, however they are expected to remain elevated for an extended period. This will have an implication on rate-sensitive sectors like banking, auto, core industries, and heavy-weighted balance sheet companies. 

The elevated global bond yields and appreciation of the US dollar will affect the domestic economy and capital flows. However, it should not have a deep overhang effect on the economy but rather a mixed bias in the short term. The inclusion of government securities in the global bond index and moderation in inflation, like food & international commodity prices, will support INR and domestic corporate profit even in a volatile global currency market, said Vinod Nair, Head of Research at Geojit Financial Services.

06 Oct 2023, 11:34:45 AM IST

RBI MPC Meeting Live: RBI decision impact to be limited on markets, says Santosh Meena

The RBI's decision to maintain the status quo in its policy has been received positively by the market, despite growing concerns about rising inflation on a global scale. Nevertheless, the impact of this decision is expected to be limited, as the market's attention is anticipated to shift towards global market dynamics, notably the dollar index and US bond yields, said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Technically speaking, Nifty has managed to surpass the 50-day moving average (DMA), suggesting potential for a further recovery towards the 20-DMA level of 19,800. However, a significant bullish momentum is projected to materialize only upon breaching the 19,800 mark, he added.

06 Oct 2023, 11:26:56 AM IST

RBI Policy Reaction: Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Shares and Stock Brokers

The monetary policy statements in October 2023, as expected, maintained the status quo on all points. Contrary to common belief, the RBI did not lower its growth forecasts. According to the inflation projection, the RBI anticipates persistent headline inflation even in FY25. According to the RBI's inflation forecast, the real policy rate would be in the 100 to 150 basis point range in FY25. This is consistent with the central bank's preference. As a result, a rate cut in the next 12 months is exceedingly unlikely. 

On the plus side, the governor expressed strong confidence that India will maintain strong growth and that inflation will continue to fall, albeit slowly. These forecasts are encouraging for both the equity and debt markets in the medium term. However, the strong possibility of the RBI remaining on hold for an extended period of time, as well as the continuance of liquidity tightening, is bad for interest-sensitive industries.

06 Oct 2023, 11:24:10 AM IST

RBI MPC Meeting Live: RBI says to continue to focus on inflation, liquidity in banking system

The Reserve Bank of India on Friday said it will continue to focus on major risks posed by high inflation as well as the liquidity deficit in the banking system while maintaining its status quo on key policy rates for the fourth time in a row.

The central bank said the inflation outlook was clouded by uncertainty following uneven kharif sowing and volatile global food and energy prices.

The MPC kept both growth and inflation forecasts for the current fiscal at 6.5% and 5.4%, respectively. Read here

06 Oct 2023, 11:22:40 AM IST

RBI MPC Meeting Live: GDP growth forecast for FY24 unchanged at 6.5%, says Governor 

The Reserve Bank of India’s (RBI) on Friday kept the GDP growth forecast for FY24 unchanged at 6.5%.

In its bi-monthly monetary policy announced on October 6, RBI Governor Shaktikanta Das said the domestic economic activity exhibits resilience on the back of strong domestic demand in contrast to global trends.

The central bank kept the July-September 2023 (Q2FY24) GDP growth forecast unchanged at 6.5% and that for Q3FY24 at 6.0%. Read full report here

06 Oct 2023, 11:18:46 AM IST

RBI MPC Meeting Live: RBI maintains CPI inflation forecast for FY24 at 5.4%

According to the Reserve Bank’s enterprise surveys, manufacturing firms expect higher input cost pressures but marginally lower growth in selling prices in Q3 compared to the previous quarter. Services and infrastructure firms expect a moderation in growth of input costs and selling prices. Taking into account these factors, CPI inflation is projected at 5.4% for 2023-24, with Q2 at 6.4%, Q3 at 5.6% and Q4 at 5.2%, with risks evenly balanced. CPI inflation for Q1:2024-25 is projected at 5.2%, mentioned the Monetary Policy Statement release. Read here

06 Oct 2023, 11:17:02 AM IST

RBI MPC Meeting Live: RBI to consider OMO sales to manage liquidity: RBI Governor

The release of the remaining impounded I-CRR funds tomorrow along with pickup in government spending are expected to ease liquidity conditions. Festival time increase in currency demand may, of course, act as a counterbalancing factor. It is a turning pitch and we will play our shots carefully. Going forward, while remaining nimble, we may have to consider OMO-sales (Open Market Operation sales) to manage liquidity, consistent with the stance of monetary policy. The timing and quantum of such operations will depend on the evolving liquidity conditions, said Governor Das.

06 Oct 2023, 11:10:22 AM IST

RBI MPC Meeting Live: 5 key takeaways from RBI governor statement

There was hardly any surprise in the October policy but the tone of the RBI Governor remained hawkish as he reiterated the central bank's focus on bringing inflation sustainably down. The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) unanimously decided to keep the repo rate unchanged at 6.5 per cent on Friday. The central bank also retained its policy stance as the "withdrawal of accommodation" with five out of six MPC members voting in favour of this. 

Check five key highlights of the RBI MPC meeting outcome here

06 Oct 2023, 10:53:41 AM IST

RBI MPC Meeting Live: Introduction of New Channels for Card-on-File Tokenisation

Given the growing acceptance and benefits of tokenisation of card data, it is now proposed to introduce Card-on-File Tokenisation (CoFT) creation facilities directly at the issuer bank level. This measure will enhance convenience for cardholders to get tokens created and linked to their existing accounts with various e-commerce applications, RBI Governor Das said.

06 Oct 2023, 10:52:53 AM IST

RBI MPC Meeting Live: Limit for Gold Loans under the Bullet Repayment scheme raised 

It has been decided to increase the existing limit for Gold Loans under the Bullet Repayment scheme from 2 lakh to 4 lakh in respect of Urban Co-operative Banks (UCBs) who have met the overall target and sub-targets under the Priority Sector Lending (PSL) as on March 31, 2023. This measure is in pursuance of our earlier announcement that suitable incentives shall be provided to UCBs that have met the prescribed PSL targets as on March 31, 2023.

06 Oct 2023, 10:51:30 AM IST

RBI MPC Meeting Live: Framework for Income Recognition, Asset Classification and Provisioning pertaining to Advances 

With a view to strengthen the extant regulatory framework governing project finance and to harmonise the instructions across all regulated entities, the extant prudential norms for projects under implementation have been reviewed, RBI Governor Shaktikanta Das said. 

A comprehensive regulatory framework applicable for all regulated entities is now proposed to be issued. Detailed draft guidelines will be released for public comments, he added.

06 Oct 2023, 10:50:10 AM IST

RBI MPC Meeting Live: RBI Governor on liquidity and financial market conditions

Moderation in excess liquidity conditions as a result of the combined impact of I-CRR and advance tax outflows in September has resulted in greater recourse to the marginal standing facility (MSF) by banks. Elevated levels of MSF borrowings amidst substantial funds parked under the standing deposit facility (SDF) is symptomatic of skewed liquidity distribution in the banking system. This got reflected in the firming up of the weighted average call rate (WACR) – the operating target of monetary policy, said RBI Governor Das.

Despite such hardening at the short-end of the term structure, the average term spread in the G-sec market remained at around 40 basis points in August-September suggesting stable financial conditions, he added.

06 Oct 2023, 10:45:25 AM IST

RBI MPC Meeting Live: Inflation target is 4% and not 2-6%: RBI Governor

The RBI’s aim is to align inflation to the target on a durable basis while supporting growth. Emphatically reiterate that our inflation target is 4% and not 2 to 6%, said RBI Governor Shaktikanta Das

06 Oct 2023, 10:39:01 AM IST

RBI MPC Meeting Live: 10-year government bond yield rises 5 bps to 7.26% 

India 10-year government bond yield rises 5 bps to 7.26% after the RBI Governor announced that the central bank may consider OMO sales of government securities to manage liquidity consistent.

06 Oct 2023, 10:37:11 AM IST

RBI MPC Meeting Live: Q1 current account deficit declined to 1.1% of GDP

The current account deficit for the first quarter of the current financial year 2023-24 declined to 1.1% of GDP from a year ago, said RBI Governor Shaktikanta Das.

06 Oct 2023, 10:33:32 AM IST

RBI MPC Meeting Live: It’s A Turning Pitch: RBI Governor on liquidity

The moderation in system liquidity has led to greater recourse of Marginal Standing Facility (MSF) by banks. There is also skewed liquidity distribution among banks. It is a turning pitch and we will play our shots accordingly, said RBI Governor Shaktikanta Das.

06 Oct 2023, 10:30:25 AM IST

RBI MPC Meeting Live: RBI may consider G-Sec OMO sales to manage liquidity: Governor Das

RBI may consider OMO sales of government securities to manage liquidity consistent with the stance of monetary policy, RBI Governor Shakatikanta Das said. The timing and quantum of such operations will depend on prevailing liquidity conditions, he added.

 

06 Oct 2023, 10:26:38 AM IST

RBI MPC Meeting Live: Domestic economic activity exhibits resilience: RBI Governor

Global headline inflation could remain high for a longer period than estimated, in contrast to global trends, domestic economic activity exhibits resilience on the back of strong domestic demand, says RBI Governor Shaktikanta Das.

06 Oct 2023, 10:24:12 AM IST

RBI MPC Meeting Live: RBI maintains CPI inflation forecast for FY24 at 5.4%

RBI maintains CPI inflation forecast for FY24 at 5.4%

- CPI inflation forecast for Q2FY24 raised to 6.4% from 6.2%

- CPI inflation forecast for Q3FY24 cut to 5.6% from 5.7%

- CPI inflation forecast for Q4FY24 left unchanged at 5.2%

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

06 Oct 2023, 10:18:32 AM IST

RBI MPC Meeting Live: GDP growth forecast for FY24 unchanged at 6.5%

RBI kept GDP growth forecast for FY24 unchanged at 6.5%. 

- Q2FY24 GDP growth forecast unchanged at 6.5%

- Q3FY24 unchanged at 6.0%

- Q4FY24 GDP growth forecast unchanged at 5.7%

- GDP growth forecast for April-June 2024, or Q1FY25, unchanged at 6.6%

06 Oct 2023, 10:15:27 AM IST

RBI MPC Meeting Live: SDF, MSF rate kept unchanged

RBI kept the repo rate unchanged at 6.5%. Standing Deposit Facility and Marginal Standing Facility rates also left unchanged at 6.25% and 6.75%. MPC voted to remain focused on withdrawal of accommodation by 5 votes to 1.  

06 Oct 2023, 10:12:49 AM IST

RBI MPC Meeting Live: India is poised to become growth engine of the world: RBI Governor

India is focussed on macro stability and fundamental growth. The external sector remains manageable. India is poised to become the new growth engine of the world. The twin balance sheet stress is replaced by twin balance sheet advantage, said RBI Governor Shaktikanta Das.

06 Oct 2023, 10:10:07 AM IST

RBI MPC Meeting Live: Policy stance retained at ‘Withdrawal Of Accommodation’

RBI maintains status quo on the policy stance. It is retained at ‘Withdrawal Of Accommodation’ with 5 of 6 MPC members voting in favour of this, announced RBI Governor Shaktikanta Das.

06 Oct 2023, 10:06:45 AM IST

RBI MPC Meeting Live: RBI maintains status quo on rates, stance

The Reserve Bank of India (RBI) on October 6 maitained status quo on policy rates and stance of its monetary policy. The RBI kept the repo rate unchanged at 6.5%.

06 Oct 2023, 10:04:36 AM IST

RBI MPC Meeting Live: Monetary policy focus remains to align inflation at 4% target: RBI Governor 

Monetary policy focus remains to align inflation at 4% target, said RBI Governor Shaktikanta Das

06 Oct 2023, 09:52:51 AM IST

RBI MPC Meeting Live: Watch RBI Governor Shaktikanta Das; policy statement here 

Watch RBI Governor Shaktikanta Das' Monetary Policy speech here. 

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