As expected, the monetary policy committee cuts repo rate for the fifth consecutive time in October 2019. After the RBIs rate cut announcement Indian market gained some points, but due to lower than expectations the rate-sensitive stocks turned negative. Even Indian rupee and crude bond prices fell. Let’s read out a few takeaways from the RBIs policy.
The industry also expects the six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das to take steps to improve liquidity situation and also ensure the transmission of rate (repo) cuts to borrowers by the banks.
RBI Monetary Policy explained: Time for number crunching may again have arrived as Reserve Bank of India prepares to announce its bi-monthly Monetary Policy Statement on Thursday (June 6). The policy affects our finances. Due to technical jargon, Monetary Policy Statement is often hard for most of us to understand. Here's an explainer.
The Indian rupee Tuesday settled unchanged at 69.26 against the US dollar in a lacklustre trade as participants preferred to sit on the fence ahead of the RBI monetary policy outcome on Thursday.
Experts are divided in their opinion about the likely action of Reserve Bank of India on the benchmark lending rate.
The RBI also lowered the economic growth projection to 6.6 per cent for 2017-18 from the previous 67 per cent. It estimated 7.2 per cent growth in the next fiscal.
Maintaining a neutral stance, the Reserve Bank of India today kept the repo rate unchanged at 6 per cent.
The MPC also kept reverse repo rate under the LAF unchanged at 5.75 per cent and marginal standing facility (MSF) rate and the Bank Rate at 6.25 per cent.
The benchmark BSE Sensex fell further by 100 points in early trade today due to selling in interest-sensitive stocks ahead of RBI's policy announcement later in the day.
At its previous bi-monthly policy review here in October, the RBI had maintained status quo on its repo, or short term lending rate for commercial banks, at six per cent, citing risks to inflation and uncertainties on the external and fiscal fronts.
The retail inflation or consumer price index based-inflation inched up to a seven-month high of 3.58 per cent in October from 3.28 per cent in September.
Only one from the six-member monetary policy committee pressed for lowering rates by at least 25 basis points.
In August this year, the RBI's monetary policy committee had decided to lower interest rates to 6 per cent.
The fourth bi-monthly monetary policy statement for 2017-18, to be released today, is being keenly awaited by all stakeholders.
Sensex surged 332 points and the Nifty was back on top of 9,800 on optimistic buying ahead of RBI policy review.
Industry believes the RBI's move to cut interest rates by 0.25 per cent was long due, but there was more that could have been done
In first rate cut since October 2016, the Reserve Bank of India on Wednesday slashed benchmark lending rate by 25 basis points from 6.25 per cent to 6.0 per cent.
The RBI today announced a 25bps cut in repo rate following a decision by the six-member Monetary Policy Committee headed by RBI Governor Urjit Patel which held a two-day meet to deliberate on the bank's stance on key policy rates
The meeting's outcome tomorrow is being keenly awaited by all stakeholders including industry and stock markets
The RBI, which is mandated to ensure that inflation is at 4 per cent in the medium-term, chose to go for a status quo in the rates at its review this week.
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