RBI MPC 2024 Live Updates: The Reserve Bank of India kept key interest rates of the country, unchanged for the tenth time in a row, on Wednesday, October 9, 2024. The decision received majority votes from six-member MPC, with 5:1. However, RBI turned dovish, by changing monetary policy stance to 'Neutral' from earlier hawkish outlook of 'Withdrawal Of Accommodation'.
Accordingly, the policy repo rate under the liquidity adjustment facility (LAF) is unchanged at 6.50 per cent. Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.
The three-day six-member MPC meeting commenced on October 7, with outcomes of the monetary policy to be presented by RBI governor Shaktikanta Das on Wednesday, October 9, 2024.
The October policy saw inputs from three new MPC members. They are - Economist Saugata Bhattacharya; Dr Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development; and lastly Professor Ram Singh, Director, Delhi School of Economics, University of Delhi.
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Oct 09, 2024, 7:48 pm IST
RBI Policy Live Updates: Positive Outlook On Bonds
Parijat Agrawal, Head of Fixed Income at Union Asset Management Company: In line with our expectation, the policy rate remained unchanged @ 6.5% and the stance was changed to neutral. This adjustment paves the way for potential rate changes in the coming policy. The Monetary Policy Committee kept inflation and growth projections for fiscal 2025 unchanged. Nevertheless, considering the changing global and domestic macroeconomic conditions, there seems a possibility of undershooting these projections. We maintain a positive outlook on the bond markets, supported by an easier policy rate outlook, highly favourable demand-supply dynamics, global rate cycle easing, and evolving domestic and global macroeconomic factors. Weather and geopolitical risks remain key monitorable.
Oct 09, 2024, 4:32 pm IST
RBI Policy Updates: Neutral Stance Good News For Banks?
Vipul Bhowar, Senior Director, Listed Investments, Waterfield Advisors: "The neutral stance provides flexibility for banks, supporting lending activities without an immediate need for rate hikes or cuts. This should help maintain healthy credit flows to businesses and individuals, which is vital for sustaining the economic momentum. The unchanged rates are likely to sustain consumer demand, particularly in sectors like housing, which is crucial during the ongoing festive season."
Oct 09, 2024, 4:31 pm IST
RBI Policy Live Updates: RBI Monetary Policy Impact On Market
Vaibhav Porwal, Co-founder, Dezerv: The MPC decision to keep rates unchanged aligned with our outlook and expectations. There is no immediate risk to growth, which is positive for the equity markets. While geopolitical tensions could affect inflation through commodity price fluctuations, overall liquidity remains stable, the shift from an accommodative stance to neutral opens up the chances of rate cut in the next MPC meeting in December. This outlook is favourable for equity markets, the next policy meeting will be crucial, with a strong possibility of rate cuts that may bring big changes.
Oct 09, 2024, 2:45 pm IST
RBI Policy Updates: Current Geopolitical Tensions Remain A Risk
Prashant Pimple CIO- Fixed Income, Baroda BNP Paribas Mutual Fund: Going forward, we expect RBI MPC policy to follow the inflation trajectory and any space for a domestic pivot is expected in Q4 FY25, where we expect inflation to be closer to RBI’s 4% target driven by winter food crop arrival. Having said that, current geopolitical conditions remain a risk to our inflation and growth projections.”
Oct 09, 2024, 2:13 pm IST
RBI Policy Updates: UPI Lite Development
UPI Lite: A limit of ₹500 per transaction and an overall limit of ₹2000 per UPI Lite wallet, is presently applicable, with the facility of auto-replenishment. To widen the scope of usage of this product, it has now been decided to increase the UPI Lite wallet limit to ₹5,000 and per-transaction limit to ₹1,000. The Framework for facilitating small value payments in offline digital mode, issued by the Reserve Bank, under which UPI Lite has been enabled, will be suitably amended.
Oct 09, 2024, 2:13 pm IST
RBI Policy Live Updates: UPI - Enhancement of limits
UPI123Pay: UPI123 was launched in March 2022, with a view to enable feature-phone users to use UPI. This facility is now available in 12 languages. Currently, the per-transaction limit in UPI123Pay is capped at ₹5000. In order to widen the use-cases, in consultation with the stakeholders, it has been decided to enhance the per-transaction limit to ₹10,000. Necessary instructions will be issued to NPCI shortly.
Oct 09, 2024, 2:06 pm IST
RBI Policy Live Updates: Pre-payment Penalties on Loans
RBI announced that it has decided to broaden the scope of such regulations to cover loans to Micro and Small Enterprises (MSEs) extended by the Regulated Entities of the Reserve Bank. In terms of extant guidelines, banks and NBFCs are not permitted to levy foreclosure charges/ pre-payment penalties on any floating rate term loan sanctioned to individual borrowers with or without co-obligant(s), for purposes other than business
Oct 09, 2024, 12:32 pm IST
RBI Policy Live Updates: What Does RBI's GDP Forecast Of 7.2% Mean?
Murthy Nagarajan, Head-Fixed Income, Tata Asset Management: RBI has kept the growth forecast unchanged at 7.2%. CPI inflation forecast is at 4.5% for current year. Next year inflation for first quarter has been changed from 4.4% to 4.3%. Indian GDP is showing signs of slowdown, reflected in discounts offered in four-wheeler sales, slowdown in GST Collections. With Global geopolitical disruption , there could be a growth slowdown in the coming months. This should become clear during the next policy statement in December 6, 2024. There is a good probability of a rate cut in the next monetary policy.
Oct 09, 2024, 12:29 pm IST
RBI Policy Live Updates: RBI Cautions NBFC
Anil Gupta, Senior Vice President, Co Group Head - Financial Sector Ratings, ICRA: “Given the wider purpose for credit inclusion served by MFIs and HFCs, we don’t expect a general tightening of guidelines for the sector. However, given the cautionary statements by the regulator, there could be more regulatory scrutiny around the business models and risk practices of some specific NBFCs. If the regulatory concerns remain unaddressed, entity-specific action cannot be ruled out.”
Oct 09, 2024, 11:27 am IST
RBI Monetary Policy Updates: Controlling Inflation Is Prudent
Nishant Srivastava CEO of Torus Wealth: Decision to maintain the repo rate at 6.50% aligns with expectations and demonstrates a continued focus on managing inflation. While neutral stance suggests a cautious approach to future monetary policy. Given the ongoing geopolitical tensions and global economic uncertainties, the RBI's decision to prioritize inflation control is prudent. Its important to monitor economic indicators closely to assess the impact of this policy on growth and development.
Oct 09, 2024, 11:10 am IST
RBI Policy Live Updates: What Does Latest Status Quo Mean?
Anitha Rangan, Economist, Equirus: The signal that RBI is warming up or getting more comfortable towards accommodation is the point around transmission to credit markets being satisfactory. However, at the juncture of elevated global volatility perhaps RBI does not believe it to be opportune to cut rates. They will await more certainty from external side (US elections, Middle East tensions), before taking their first step which is not likely before March of 2025. Why disturb the horse which is well tethered?"
Oct 09, 2024, 11:04 am IST
RBI Policy Live Updates: Inflation Target Unchanged
MPC has once again upheld its inflation forecast for the financial year 2024-25 at 4.5%. The RBI decided to keep the inflation outlook unchanged, citing balanced risks while addressing the ongoing challenges posed by food prices, global tensions, and domestic factors.
Oct 09, 2024, 10:48 am IST
RBI Monetary Policy Live Updates: Bonds Look Attractive After Status Quo In Repo Rate?
Suresh Darak, Founder of Bondbazaar: As anticipated, the RBI's Monetary Policy Committee (MPC) has kept interest rates unchanged in its policy announcement today. While there were hopes for a rate cut in line with the U.S. Fed, the RBI has taken a prudent approach by focusing on key indicators like domestic inflation and financial stability, particularly in light of the declining individual savings as a percentage of GDP, which poses a financial stability risk. Recent global geopolitical developments have led to a surge in oil prices, which could drive inflation further. This likely influenced the MPC's decision to hold rates steady. Over the last couple of weeks, the 10-year benchmark G-sec yields have risen by around 10 basis points due to these factors. However, if these global challenges prove temporary, we might see a rate cut in the next policy cycle. In this context, long-term bonds with current yields look attractive, and investors may want to consider locking them in, especially if global tensions ease and domestic economic indicators remain stable.
Oct 09, 2024, 10:46 am IST
RBI MPC Live Updates: Liquidity Conditions
RBI: The Reserve Bank conducted two-way market operations while ensuring adequate liquidity to meet the productive requirements of the economy.
Oct 09, 2024, 10:45 am IST
RBI Policy Live Updates: Financial Markets In Volatility
RBI said: Domestic financial markets exhibited orderly movements in contrast to volatile global market conditions during H1:2024-25. Money market rates evolved in line with liquidity shifts while long-term bond yields eased. Banks’ lending and deposit rates increased, reflecting ongoing monetary policy transmission.
Oct 09, 2024, 10:41 am IST
RBI Monetary Policy Meeting Live Updates: Outlook For Domestic Economic Activity Remains Resilient
RBI said: The outlook for domestic economic activity remains resilient buoyed by strong consumption and investment activities. Geopolitical conflicts, uncertain global outlook, volatile global financial markets amidst changing perceptions on monetary policy trajectories, and climate shocks are the key risks to the outlook. Monetary policy remains steadfast on aligning inflation with the target on a durable basis, setting strong foundations for a sustained period of high growth.
Oct 09, 2024, 10:33 am IST
RBI Policy Updates: RBI Dovish Stance
RBI turned dovish despite keeping repo rate unchanged at 6.5%. decided to change the monetary policy stance to ‘neutral’ and to remain unambiguously focused on a durable alignment of inflation with the target, while supporting growth.
Oct 09, 2024, 10:18 am IST
RBI MPC Live Updates: Banking Stocks On Bull Run
RBI's latest status quo in repo rate to 6.5% for the tenth time in a row, breathed a sudden life in banking stocks on Wednesday, October 9, 2024. Majority of banking stocks with PSU lenders outperforming, are on a bull run. Bank Nifty gained by over 547 points, while Nifty PSU Bank rallied by 2%. Nifty Private Bank is up by nearly a per cent.
Oct 09, 2024, 10:05 am IST
RBI Policy Live Updates: Shaktikanta Das Keeps Repo Rate Unchanged
The Reserve Bank of India kept key interest rates of the country, unchanged for the tenth time in a row, on Wednesday, October 9, 2024. The policy decision comes after 3-day MPC committee meeting. Accordingly, the policy repo rate under the liquidity adjustment facility (LAF) is unchanged at 6.50 per cent. Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.
Oct 09, 2024, 10:00 am IST
RBI Policy Live Updates: Countdown Begins, Will RBI Be Dovish?
Ajit Banerjee President & Chief Investment Officer, Shriram Life Insurance Company: India, as of now, doesn’t face the challenge of the GDP growth falling consistently. The low GDP growth numbers of 6.7% in Q1 were primarily driven by adverse base effect and a slowdown in government-driven investment expenditures due to general elections in Q1. This was the main driving force behind the GDP growth of the country. Much to our relief, the government capex has resumed in Q2, and therefore, GDP growth numbers would fall in line with RBI projections. There would also be reconstitution of the MPC this time with the appointment of three external members, so it seems to be unlikely that we can expect any significant change in this meeting. That said, a shift to a neutral stance isn’t completely ruled out. A dovish tone in the governor’s commentary could also set the direction moving forward.
Oct 09, 2024, 9:28 am IST
RBI Policy Live Updates: Indian Stock Market Open Higher
Indian stock market opened on a bullish trend on Wednesday ahead of RBI policy. Sensex rallied by 320 points to hit an intraday high of 81,954.58, while Nifty 50 gained to near 25,100 levels by touching an intraday high of 25,091.85. However, Bank Nifty traded flat at 51,014.80, after touching day's high and low of 51,231.60 and 51,011.05 respectively.
Oct 09, 2024, 9:10 am IST
RBI Live Policy Updates: What To Expect From Market In Opening Bell?
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services: BJP’s victory in Haryana has come as a morale booster for the party and confidence booster for markets. The sentiments will get a further boost if the MPC decides to change the monetary stance from accommodative to neutral and sound a bit dovish today. A rate cut, however, is unlikely since food inflation continues to be a worry.
Oct 09, 2024, 8:43 am IST
RBI Policy Live: 25 Or 35 Bps Rate Cut Today?
Amit Jain, Chairman and Managing Director, Arkade Developers: Given the constrained headroom and mounting inflationary pressures, we anticipate a 25bps to 30bps rate cut in October. The rate cut will increase borrowing, boosting home sales further, particularly during Q3FY 24–25's festive seasons. As the festive season is around the corner, it is one of the most important times for home sales. Rate reductions will boost demand in all markets, but particularly in Mumbai, which recently passed the one lakh home sales milestone in record 9-month time.
Oct 09, 2024, 8:13 am IST
RBI MPC Live Updates: Real Estate Hopes For Rate Cut
Ramani Sastri - Chairman & MD, Sterling Developers: We hope to see lower interest rates which will provide an impetus to not just real estate and housing demand but across industries and economic growth. Moreover, as the festive season approaches, it presents a golden opportunity to reinvigorate the real estate market with reduced interest rates ahead of the festive season, which is a crucial period for real estate sales. As India's economy continues to grow, there is no hesitation among the homebuyers to invest in residential real estate for long-term returns. Overall, the market outlook is certainly positive and given the confidence built this year, we do believe that markets will continue to see sustained growth over the next few years, providing appealing prospects for both first-time buyers and seasoned investors. The real estate sector is poised to play a significant role and contributing to the country's economic expansion.
Oct 09, 2024, 7:45 am IST
RBI Policy Live Updates: Geopolitical Tensions Give Uncertain Times
JM Financial: Uncertainty still persists on the geopolitical tensions and its likely impact on crude oil is still uncertain. Brent crude price spiked 8.9% in last week to close at USD 78/bl, the impact of rising crude prices will also deteriorate the trade balance in addition to its inflationary pressures. We don’t expect premature policy easing by the RBI, as it would prove to be counterproductive in case of resurgence in inflationary pressures. However, after Fed’s steep rate cut in Sep’24 and another 25bps cut expected in Nov’24. RBI may want to prepare the markets for policy easing in its next meeting in Dec’24, hence along with minor tweaking in growth and inflation forecast, change in stance to ‘neutral’ could be on RBI’s mind on 9th Oct, but we believe this call will be a tough one.
Oct 09, 2024, 7:24 am IST
RBI Policy Live Updates: Gold-Loan NBFCs Expectations From MPC
Umesh Mohanan, ED & CEO, Indel Money: As far as the gold-loan NBFCs are concerned, we demand monetary easing. We urge RBI to start the rate cut cycle because the high cost of funds is a major concern for us. Bank credit to NBFCs has fallen. In fact, banks themselves are struggling to raise deposits from the public. On one hand, the overall credit demand in the economy is surging and, on the other, funds have become dearer. Even at a higher interest rate, people are ready to borrow. In the long run, it is going to hurt consumption and GDP growth.
Oct 09, 2024, 6:54 am IST
RBI Policy Live Updates: Is There Any Change In Monetary Policy Stance Today?
Emkay Global: The fluidity of global narratives in conjunction with comfortable banking liquidity, easy financial conditions on net, incipient weakness in growth, noisy food inflation, and the still-elusive 4% inflation target etc, would make it tricky for the RBI to find a balance in its policy biases. While the upcoming policy may not see any rate action, a stance change to neutral with stress on being 'actively disinflationary' would be MPC's best bet to prep ground for start of a shallow easing cycle.
Oct 09, 2024, 6:51 am IST
RBI Monetary Policy Live Updates: MPC Will Be Cautious In Rates
Care Edge: MPC will be cautious regarding the evolving risks to food inflation. Although core inflation has remained relatively benign, higher food inflation has kept the headline numbers elevated. As far as economic growth is concerned, while high-frequency indicators suggest some softening of the economic momentum, overall growth continues to remain healthy. A revival of the private consumption demand along with early signs of a pickup RBI Policy Preview: Status Quo on Policy Rate Expected in private investment bodes well for the overall economy. The RBI will also find comfort from the fact that growth in unsecured lending has slowed. We believe that RBI is likely to maintain a status quo on policy interest rates in the upcoming meeting. However, if food inflation moderates, we could see a shallow rate cut of 50 bps in the upcoming policy meetings in this fiscal year.
Oct 09, 2024, 6:38 am IST
RBI Monetary Policy Live Updates: Why MPC May Keep Rates Unchanged?
Viram Shah, CEO of Vested Finance: We expect RBI to maintain the repo rate at 6.50%. This decision is likely to be driven by the strong domestic growth trajectory and persistent inflation risks. Although inflation has moderated from its peak, it remains a significant concern. Retail inflation averaged 4.3% from April to August 2024, and food inflation continues to hover above 5%. The RBI may hold off on rate cuts until a more sustained moderation in prices, particularly food, is evident.
Oct 09, 2024, 6:31 am IST
Monetary Policy Live Commentary: Why RBI Decides Policy Rates?
RBI's policy decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.
Oct 09, 2024, 6:30 am IST
RBI Monetary Policy Live Updates: Current Monetary Policy Stance
RBI has kept the hawkish stance in policy since May 2022. In the August policy, the MPC remained focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.
Oct 09, 2024, 6:28 am IST
MPC Live Updates: RBI Policy Rates
RBI has kept policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50% for nine consecutive policy. Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.
Oct 09, 2024, 6:27 am IST
RBI Policy Live Updates: RBI October Policy Outcome Today
The three-day six-member MPC meeting commenced on October 7, with outcomes of the monetary policy to be presented by RBI governor Shaktikanta Das on Wednesday, October 9, 2024.
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