RBI Policy Live Updates: Governor Shaktikanta Das to announce statement soon

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RBI monetary policy: As widely expected, the Reserve Bank of India (RBI) has hiked the repo rate by 50 basis points to 4.90%, Governor Shakktanta Das announced on Wednesday in his fight against rising inflation. The rate hike comes after last month’s off-cycle hike. Presenting the third monetary policy for the current financial year, Das said the Indian economy remains resilient and the central bank will continue to support growth.

The RBI had lowered the repo rate in March 2020 to mitigate the impact of the Covid-induced lockdown and maintained the benchmark rate status quo for almost two years before raising it on May 4, 2022.

June 08, 2022 11:14:33 am IST

Rate hike as expected

“The June policy was a continuation of the off-cycle policy with a full focus on inflation. The RBI’s decision to raise the repo rate by 50 basis points and raise the inflation forecast by 100 basis points was in line with market expectations. The political tone remains strong and we expect the RBI to continue raising the repo rate to ensure a neutral to moderately positive real policy rate. Suvodeep Rakshit, Senior Economist, Kotak Institutional Equities, said: “We expect a further increase in the CRR by 50 basis points by the end of fiscal 2023, which will bring the liquidity position to pre-pandemic levels.

June 08, 2022 11:10:09 am IST

Impact of RBI rate hike on MSMEs

“An RBI repo rate hike was imminent due to the inflation spike and global macroeconomic scenarios. The overall ~1% increase in RBI funding costs over the past few months will impact the overall viability of major projects, infrastructure and long-term projects. On the other hand, after almost 2 years of uncertainty, MSMEs are recovering on better customer sentiment. MSMEs need more adequacy and certainty of funds versus costs alone, and as such we believe they should be able to handle growth as long as it stays within this range over the medium term,” said Manish Lunia, co-founder of Flexiloans.com.

June 08, 2022 11:06:32 am IST

RBI rate hike policy

“With a CPI forecast of 5.7% to 6.7%, the RBI’s 50 basis point rate hike was in line with market expectations and was taken into account by the market in previous trading sessions. To curb inflation, expectations of this rate hike were seen as a rise in bond yields, which could make corporate borrowing costly. However, the expected rebound in commodity prices as a result of this announcement could represent a stable long-term growth plan for the broader economy,” said Shivam Bajaj, Founder and CEO of Avenor Capital.

June 08, 2022 10:50:31 am IST

foreign exchange reserves

India’s exports have performed exceptionally well. On June 3, 2022, India’s foreign exchange reserves totaled $601.1 billion: RBI Governor Shakktanta Das

June 08, 2022 10:41:02 am IST

E-mandate extension on cards

The Reserve Bank of India today announced an increase in the limit for electronic mandates/standing instructions on cards and prepaid payment instruments (PPIs) for recurring transactions from the current ₹5,000 to ₹15,000.

June 08, 2022 10:37:58 am IST

Credit card is linked to UPI

Credit cards starting with RuPay credit cards can now be linked to the Unified Payments Interface (UPI) platform, says RBI governor. This facility will be available upon completion of the required system development.

June 08, 2022 10:36:59 am IST

Stock market reaction to RBI policy results

Benchmark Sensex and Nifty 50 indexes pared daily losses, while the Nifty Bank index rose after the RBI announced a repo rate hike. Bond yields also rose

June 08, 2022 10:34:25 am IST

100% increase in housing cap for cooperative banks

The Reserve Bank of India (RBI) has increased the limit on personal loans from credit unions by 100%, Governor Shakktanta Das announced.

June 08, 2022 10:31:45 am IST

Repo rate remains below pre-Covid levels

In a normal monsoon, government action will help curb inflation, RBI governor says, as repo rate stays below pre-pandemic levels.

June 08, 2022 10:26:02 AM IST

government loan program

Announcing the outcome of the MPC meeting, Gov. Das said we will be monitoring the G-Sec market very closely and taking action as necessary, and the focus will be on a systematic government lending program.

June 08, 2022 10:21:34 AM IST

Inflation will remain

RBI raised FY23 CPI inflation forecast to 6.7% from 5.7%.

Inflation is likely to remain above 6 percent in the first three quarters of the current fiscal year. “Our steps will be calibrated, the focus will be on bringing inflation down to target levels,” says the RBI governor.

June 08, 2022 10:17:38 am IST

GDP growth forecast unchanged

RBI leaves FY23 GDP growth forecast at 7.2% with risks balanced

June 08, 2022 10:14:57 am IST

speeding up recovery

India’s recovery has accelerated. Housing retreat began during pandemic, says RBI Guv

June 08, 2022 10:12:20 am IST

Increase in MSF and policy rate

The central bank decided to raise the Marginal Standing Facility (MSF) rate and policy rate from 4.65% to 5.15%, Governor Das announced

June 08, 2022 10:11:14 am IST

withdrawal of housing

RBI unanimously resolves to maintain “home restitution” policy stance

June 08, 2022 10:09:12 am IST

challenging times

“The war in Ukraine has led to globalization of inflation. In challenging times, the Indian economy remains resilient. MPC notes that inflation risk is increasing,” RBI Governor says

June 08, 2022 10:05:40 AM IST

RBI raises the repo rate

The Reserve Bank of India (RBI) raised the repo rate by 50 basis points to 4.90%

June 08, 2022 09:51:41 IST

Change in forecasts?

We expect the RBI to upgrade its inflation forecast to 70-80 basis points from 5.7% as it cites changes in global and domestic price pressures. Although FY23 growth forecast is expected to remain unchanged at 7.2%: HDFC Bank Treasury Research Team

June 08, 2022 09:48:44 IST

Mint View: Is the RBI in danger of failing due to inflation?

Its price stability framework was pushed back to Chicago School monetarism in 2016, but its core tenet (“inflation is always a monetary phenomenon”) under a Covid-crisis-driven reversal in the role of monetary policy to India’s old mean. Appears to be thin. (“Supply constrained inflation will halt fiercely contested growth”). The MPC call may give some clues as to where the idea is headed, but even a 50 basis point repo hike would drop the policy rate below projected inflation for the year. Even with a significant increase, oil uncertainty could put the 6% target out of reach by the end of October.

June 08, 2022 09:45:15 IST

RBI Policy Preview: It’s all about speed

At the upcoming monetary policy meeting, the RBI is expected to hike interest rates by 25 basis points to keep its stance and the CRR rate unchanged. We are leaning towards a 25 basis point rate hike rather than 50 basis points as we see no compelling reason for a larger rate hike at this stage. For one, the central bank can take comfort from the government’s recently announced anti-inflation measures: HDFC Bank Treasury Research Team

June 08, 2022 09:43:56 IST

Not an easy job for RBI: Indranil Pan

“Not an easy task for a central banker. Recently released GDP data showed slowing growth in private consumption, a sign that economic activity remains slow. On the other hand, the inflation surprise has revealed the need for the RBI to tighten monetary policy. The government has also joined the RBI to control inflationary pressures in the economy. We see the RBI extending its repo hike from May by 35bps to 35bps in June, followed by a 25bp hike each in August and September,” said Indranil Pan, chief economist at Yes Bank.

June 08, 2022 09:41:28 IST

RBI Policy: What to Expect

Given the recent increase in inflationary pressures, the central bank is also expected to upgrade its inflation forecast for the current fiscal year to over 6%. The RBI raised its inflation forecast for the current fiscal year to 5.7% in April from 4.5% in February.

RBI Governor Shakkanta Das said in a recent interview that the June rate hike was “accidental”. While rate hikes are inevitable, as Das said, the question is how much.

June 08, 2022 09:41:07 IST

rising inflation

Inflation above the 6% ceiling prompted the central bank to hike rates in a surprise meeting. India’s retail inflation rose to an eight-year high in April, staying above the central bank’s tolerance level for the fourth straight month and likely to remain elevated.

June 08, 2022 09:41:07 IST

MPC meeting

The six-member Monetary Policy Committee, headed by RBI Governor Shaktikanta Das, began deliberations on the bi-monthly monetary policy review on Monday.

June 08, 2022 09:37:40 IST

surprise hike

In a surprise move last month, the RBI raised the repo rate by 40 basis points to 4.4% in an off-cycle surge, the first hike in lending rates since August 2018 to control inflation.

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