Jun 07, 2024, 4:13 pm IST
RBI Policy Reaction: S Ravi, Founder,Ravi Rajan & Co
The repo rate being the interest rate at which the central bank or RBI lends money to commercial banks, directly impacts the cost/ interest rate applicable on the loan. An increase/ decrease in repo rate results in higher/ lower borrowing cost to the commercial banks and the same is passed on to the home loan borrowers. Increase in Repo rate can either result in higher EMI or increase in tenor of loan subject to eligibility of borrower to stretch the tenure of loan by keeping the EMI same. The repo rates have held unchanged by RBI at 6.5% since February 2023.
Jun 07, 2024, 4:12 pm IST
RBI Policy Reaction: Umesh Revankar, Executive Vice Chairman, Shriram Finance
With headline inflation moderating, liquidity remaining stable and growth figures being impressive, many observers felt that maybe this time, the MPC may want to consider adopting a dovish stand. However, with the geo-political situation still remaining volatile and India’s food inflation staying elevated, the RBI has rightly prioritised caution by maintaining status quo on policy rates.
The RBI’s revised projection of a Real GDP growth rate of 7.2% for FY25 compared to 7% earlier is a sign of confidence in the Indian economy’s resilience. The proposal to establish a Digital Payments Intelligence Platform promises to fortify the digital payments ecosystem. The ecosystem will be further boosted by the inclusion of various recurring payments under the e-mandate framework.
Jun 07, 2024, 4:12 pm IST
RBI Policy Reaction: Niraj Kumar, Chief Investment Officer, Future Generali India Life Insurance Company Ltd
MPC has delivered a ‘Fairly Neutral Policy' with a positive undertone. The MPC has been upbeat on growth and nudged the GDP forecasts higher, while yet being cognizant and cautious of achieving the last mile of disinflation. The bump up in growth numbers renders the key optimism in policy and provides the requisite comfort to Equity markets. Given the backdrop of supportive fiscal position and the global bond index inclusion, we reckon monetary policy continues to be complementary and supportive to the bond markets. While MPC refrains from giving cues on further rate actions, 4:2 voting pattern is indeed encouraging and indicative of a possible change in stance in the near future.
Jun 07, 2024, 4:12 pm IST
RBI Policy Reaction: Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited
The price of gold has risen to a two-week high to trade above Rs 73000 as new selling of the Dollar Index appears. Growing FED rate-cut bets keep US bond rates low and burden the economy. The markets have priced in around 50 basis points of Fed rate cuts this year; the first is expected to happen in September. US economic data like the Manufacturing Index, New orders, and Shipping Index- all are coming weak from the past few days, which shows that economic activity is slowing down. While Inflation is still above the FED target of 2%, so we are expected to see stagflation this year in the US, which is a supportive factor for Gold.
Jun 07, 2024, 4:11 pm IST
RBI Policy Reaction: Shishir Baijal, Chairman and Managing Director, Knight Frank India
Today's policy announcement aligns with our expectations. With the economic outlook revised upwards, we anticipate the RBI will focus on controlling inflation, aiming to bring it under the 4% target. Despite a gradual decline over the past year, consumer headline inflation has averaged 4.8% in the last three months. While core inflation has eased, food inflation remains high, affecting household expenditure. An expected above-normal monsoon should help control food prices and bring the food inflation under control. This would prompt the RBI to perhaps lower interest rates towards end of CY 2024 thereby further fuelling growth especially in the real estate sector, particularly benefitting the affordable housing segment.
Jun 07, 2024, 4:11 pm IST
RBI Policy Reaction: Madhavi Arora, Lead Economist, Emkay Global Financial Services
No change in repo rate, with a 4-2 vote split, led by two external members (vs 5-1 prior) on the rate action and stance. RBI reiterated that policy must continue to be actively disinflationary to ensure fuller transmission and the last mile of disinflation is still tricky.
The policy tone today was confident on domestic dynamics, with an upgrade in FY25 growth but no change in inflation trends despite near-term food-led risks (RBI: 4.5%, Emkay: 4.6%). Softening headline inflation will be driven by falling core prices (historically low services inflation) and contained goods inflation.
Jun 07, 2024, 4:10 pm IST
RBI Policy Reaction: Sandeep Yadav, Head - Fixed Income, DSP Mutual Fund
The monetary policy did not throw any surprises, evidenced from the muted market reaction. However, there were three things that came out. Unlike previous times, the rate pause was not a unanimous decision with two members calling for a rate cut. While it doesn’t mean that we expect a rate cut in next policy, it shows that RBI is gradually moving towards a rate cut regime. RBI has also clearly disassociated their rate actions from the US FED. While RBI does look at domestic compulsions before taking rate decisions, it has to also look at the collateral damage of the currency - just like any other EM central bank. This is prudent, and we believe RBI has been following it - and will probably follow it when it cuts the rates. RBI mentioned that they prefer to keep overnight rate close to repo rate. This seems at odds with the data from past year. Many times, the overnight rate has diverged from Repo, and it probably was through RBI's intent via VRR and VRRR. Thus, by today's statement we believe that the future course of liquidity management will change, and RBI may keep overnight rate at Repo rate.
Jun 07, 2024, 4:10 pm IST
RBI Policy Reaction: Ramakrishnan, Ramamurthy, Executive Vice President, India- Worldline
The recommendation around increased adoption of recurring payments is a very welcome move. Enabling a friction less payments experience is a critical success factor for greater adoption of mobility solution. Use of recurring payments by managing top ups and balances in mobility related solutions like fastags, NCMC, pre-paid instruments etc. will hasten the adoption of digital payments.
Jun 07, 2024, 4:10 pm IST
RBI Policy Reaction: Kartik Jain, MD & CEO at Shriram AMC
We had expected RBI to keep interest rates unchanged. Domestic economy is on a growth path as FY24 GDP came in at 8.2%, better than estimates. Recovery is witnessed in all spheres – private consumption, investment activities and exports. Although India’s retail inflation eased to 4.83% in April 2024, an 11-month low, it is still higher than the targeted range. Normal monsoon should boost agricultural activities thereby cooling down inflation further. Moreover, the RBI will also monitor closely the policy decisions adopted by the new coalition government at the Centre and its impact on the domestic economy. RBI will resort to any rate reduction only when there is increasing comfort on the inflation outlook (targeted range of 4.5%) or if Fed cuts interest rates.
Jun 07, 2024, 1:31 pm IST
RBI Policy Reaction: Anand Kumar Bajaj, Founder, MD & CEO, PayNearby
The Reserve Bank of India's (RBI) focus on promoting small-value digital payments is a positive move towards empowering Digital Bharat. Integrating UPI Lite with the e-mandate framework will benefit people in Tier 2-3 towns and rural regions, who frequently rely on small-value payments for daily needs. This initiative is expected to spur consumption, contributing to the growth of our country’s economy. We appreciate the RBI's efforts, which align with the initiatives of fintech companies like ours. These efforts are crucial in supporting the less tech-savvy population and helping them become part of the digital economy.
Additionally, the Digital Payments Intelligence Platform initiative by the RBI will enhance the security and transparency of our financial system, reducing fraud risks and building trust among users. This initiative will boost confidence among digital payment users, making them feel more secure when transacting digitally.
Jun 07, 2024, 1:30 pm IST
RBI Policy Reaction: Arvind Kothari, Smallcase Manager & Founder Niveshaay Investment Advisory
The recent election outcomes have introduced a new layer of uncertainty into the markets, driving significant fluctuations. In response to the current market conditions, we are closely watching the formation of the new government and the distribution of ministries and portfolios. The appointment of key ministers and their respective policies will provide critical insights into the future direction of economic policy.
In the last two terms, the government heavily promoted capital goods and infrastructure. In the current term, we anticipate a shift towards more populist measures aimed at rural development. Although the extent of infrastructure and capital goods measures might be reduced due to various constraints, we believe that these sectors will continue to receive attention along with rural development. The manufacturing sector is poised to remain a long-term trend, contributing to higher wage rates and, consequently, supporting rural development.
We also believe that green energy and the broader energy transition will continue to receive focus, as it is a global trend. The government has already invested significantly in this area to kick-start private spending. Unless disruptive measures are taken against the enablers of these sectors, we expect them to continue growing. For instance, the government's previous ban on the import of Chinese goods helped domestic industries to flourish. While China's aggressive capital expenditures have previously led to market share losses, the current trend shows a global rebalancing of supply chains, with businesses pulling out of China.
It is always better to be reactive rather than predictive in such market conditions. Therefore, we will adopt a wait-and-watch approach to see how the government's focus and policies develop. While we are vigilant in the short term, our primary focus is on long-term growth and stability.
Jun 07, 2024, 1:13 pm IST
RBI Policy Reaction: Amit Sachdev, COO, M1xchange
RBI’s initiative to set up a dedicated platform to tackle challenges of digital payment frauds in India is well timed. This is in line with several such initiatives undertaken by RBI to promote convenient, secure digital payments.
The proposed dedicated platform to tackle digital payment frauds will enable access to vital additional information on frauds and thus enhance the efficacy of Digital Credit Analytics enabled on TReDS.
TReDS is one such digital payment infrastructure set up under RBI’s guidelines that enables corporates and PSUs to make 100% timely payments to MSMEs through an end-to-end digital exchange in collaboration with over 60 Financial Institutions in India. The TReDS platforms have facilitated digital payments of over Rs 300,000 Crore for over 4,000 corporates and 75,000 MSMEs since inception in 2017. This significant adoption has been driven by trusted blockchain based underlying technology of TReDS.
Jun 07, 2024, 1:10 pm IST
RBI Policy Reaction: Mahendra Kumar Jajoo, CIO – Fixed Income, Mirae Asset Investment Managers
In line with market consensus, MPC kept the key policy rates unchanged. Growth outlook is projected to be robust at 7.2% for FY24-25 while the inflation is projected at 4.5%. Given the cushion of strong growth momentum, volatile food prices, and ongoing geopolitical uncertainties, indications are that there may be no rush for a rate cut even as two major global central banks have already cut rates last week. From market perspective, the policy turned out a relative non-event, being on expected lines. Bond yields remained largely range bound. Market is also focused on the contours of the new government being formed.
Expect bond yields to remain range bound with a slight easing bias for now.
Jun 07, 2024, 1:10 pm IST
RBI Policy Reaction: Akshay Mehrotra, Co-Founder and CEO, Fibe
At Fibe, we are dedicated to ensuring full transparency and customer centricity by strictly adhering to Key Facts Statement guidelines. This commitment enables us to build trust and provide our customers with clear, upfront information, reinforcing our dedication to their financial well-being. By consistently offering detailed and accurate disclosures, we empower our customers to make informed financial decisions. Our focus on transparency not only strengthens our relationship with our customers but also sets a benchmark for integrity and honesty in the fintech industry.
Jun 07, 2024, 1:07 pm IST
RBI Policy Reaction: Ajit Banerjee, CIO - Shriram Life Insurance Company
The outcome of the RBI's monetary policy for June’24 was broadly as per market expectations, except for the fact that the decision of the rate-setting panel was taken with a majority of 4:2. The RBI seemed to be very confident that the growth momentum of the economy will continue and has accordingly revised the real GDP growth for FY25 from earlier 7% to 7.2%. The reason cited for maintaining the repo rate at 6.5% and holding on to the stance of withdrawal of accommodation was due to ongoing food inflation concerns and global uncertainties springing up negative surprises.
The RBI MPC left its inflation forecast for this fiscal year unchanged at 4.5 percent, expressing its commitment to bring the inflation level back to the target of 4% on a durable basis. The RBI governor also assured and emphasised the importance of maintaining an orderly liquidity position in the financial market, and its approach will be nimble and flexible for the same. We expect the RBI to continue to focus on fine-tuning liquidity conditions through VRR/VRRR auctions in order to align the overnight rates with the repo rate. However, larger-than-expected FPI flows could see the use of durable instruments.
The MPC meeting outcome was cheered by the equity market, but the debt market didn’t react much to the MPC meeting announcement. The market would perhaps be more keen to look for the Union Budget announcement on the government's fiscal roadmap going forward. Insurance companies with a greater focus on fixed-income portfolios in their life funds would not have been significantly impacted by this MPC decision. The equity portfolio of the insurance companies has made some positive MTM gains, though.
Jun 07, 2024, 1:07 pm IST
RBI Policy Reaction: Ajay Kumar Srivastava, Managing Director & CEO, Indian Overseas Bank
We welcome the decision of RBI maintaining a status quo on the repo rate by keeping it unchanged at 6.5% and its GDP growth expectation at 7.2% for FY24. The decision to continue remaining focused on the withdrawal of accommodation reflects a balanced approach to sustain economic growth while keeping inflation in check. RBI’s decision on e-mandates for recurring payments to be extended to fastags, introduction of auto replenishment of UPI-like wallet, and establishment of a digital payments intelligence platform, is all set to promote a resilient banking sector.
Jun 07, 2024, 1:07 pm IST
RBI Policy Reaction: Niraj Kumar, Chief Investment Officer, Future Generali India Life Insurance Company Ltd
MPC has delivered a ‘Fairly Neutral Policy' with a positive undertone. The MPC has been upbeat on growth and nudged the GDP forecasts higher, while yet being cognizant and cautious of achieving the last mile of disinflation. The bump up in growth numbers renders the key optimism in policy and provides the requisite comfort to Equity markets. Given the backdrop of supportive fiscal position and the global bond index inclusion, we reckon monetary policy continues to be complementary and supportive to the bond markets. While MPC refrains from giving cues on further rate actions, 4:2 voting pattern is indeed encouraging and indicative of a possible change in stance in the near future.
Jun 07, 2024, 1:06 pm IST
RBI Policy Reaction: Siddharth Chaudhary, Senior Fund Manager – Fixed Income, Bajaj Finserv Asset Management
Today’s MPC meeting’s outcome is largely in line with market expectations. The upward revision in real GDP growth projection by 20 bps though wasn’t largely expected by market but given the momentum in recent quarters it doesn’t come as a big surprise. Also, note we now have one more MPC member in dissent voting for 25 bps rate cut along with change in stance to neutral.
The RBI’s policy rate of 6.5% amounts to a real policy rate of 2%, based on the central bank’s year-ahead inflation projection. The neutral real policy rate can be estimated as being in the 1.0%-1.5% range. The real policy rate facing the industrial sector is even higher. This creates the possibility of more members in MPC turning dovish in coming months barring any food inflation shock or big change in Fiscal policy (watch out for Final Budget FY 2025).
Jun 07, 2024, 1:06 pm IST
RBI Policy Reaction: Aman Gupta, Director, RPS Group
The decision analyzing the structure of the RBI currently keeping repo rate at 6. 5 percent for the eighth consecutive time is consistent with the desire of the central bank to permanently guide the inflationary expectations. As for home buyers, such an approach may also have mixed implications: the risks and opportunities will depend on the possibilities of continuing the decline of interest rates for a long time. In turn, even if the current set of bargaining factors such as high interest rates significantly slows the overall housing demand, it does offer an opportunity for those within the financial capacity of attaining a more favorable loan interest rate before any further increase. While some home buyers might be waiting for the prices of new properties to come down, others might be looking forward to take advantage of the slow market, to bargain for better prices with the developers involved.
Jun 07, 2024, 1:06 pm IST
RBI Policy Reaction: Subhash Goel, MD at Goel Ganga Developments
This decision shows that the RBI is alert to inflation threats – the key reason why it has kept the repo rate constant – despite portraying an upbeat economic growth picture. While this policy stance makes much macroeconomic sense, it also presents efficacious challenges for prospective homeowners. As the cost of borrowing offset remained high, the affluence of attaining homeownership continues to remain a mirage to several, especially within the affordable housing space. As far as the monetary policy is concerned the biggest wait goes to the fiscal policy, similarly the home buyers wait for the ideal interest rates and the cheaper prices of the houses in the coming months.
Jun 07, 2024, 1:05 pm IST
RBI Policy Reaction: LC Mittal, Director, Motia Group
The RBI’s strategy to wait and watch before initiating further rate cuts is well-appreciated, especially in the light of the eagerly awaited union budget that is expected to shed light on fiscal policy. To home buyers, this cautious stance means a higher borrowing cost period that continues to undermine the constrained demand for property in the real estate market. As much as the industry expected the RBI to cut the rates to boost housing consumption, the latter’s priority lies in curbing inflation and maintaining financial stability. Consumers that buy homes now experience the dilemma of either delaying their decision on their mortgages or handling more expensive EMIs.
Jun 07, 2024, 1:05 pm IST
RBI Policy Reaction: Gurmit Singh Arora, National President, Indian Plumbing Association
While the continuation of the status quo regarding the repo rates by the RBI benefits home buyers in some aspects, it also bears some drawbacks. That being the case, although the maintained status has given an illusion of stability and market predictability in the housing loan market, the long-drawn high-interest rate regime is driving the expenses up in terms of affordability. The potential homeowners are now left in a very unenviable position of having to either spend a percentage of their monthly salary which might be more than what they previously had to borrow or having to adjust their expectations of homeownership with the hope that the interest rate will become slightly more reasonable in the future. But for the consumers who already had home loans, the monetary policymaker’s conservative policy decision allows a temporary relief against mounting EMI pressures, even as the economy is passing through tough phases.
Jun 07, 2024, 1:02 pm IST
RBI Policy Reaction: Ankit Ratan, Co-founder & CEO, Signzy
The Reserve Bank of India's (RBI's) focus on building a secure financial system is commendable. Last week, RBI published its Annual Report which highlighted a rise in digital payment frauds. This surge emphasizes the urgency of tackling financial scams. Proactively, the RBI is working towards fortifying digital trust within the financial ecosystem.
In a move to combat the growing threat of digital payment fraud, the RBI announced the establishment of a Digital Payments Intelligence Platform during today's MPC meeting. This platform will leverage advanced technologies like AI and machine learning to identify and mitigate fraud risks, ultimately leading to a safer digital payments environment. This initiative underscores the RBI's commitment to prioritizing customer protection, which is further evident in their consistent efforts to introduce guidelines surrounding data protection, cybersecurity, and KYC procedures. These comprehensive measures will empower the industry to deliver a more secure and trusted digital ecosystem for all.
Jun 07, 2024, 12:49 pm IST
RBI Policy Reaction: Raghvendra Nath, MD, Ladderup Wealth Management
In its latest meeting, RBI decided to maintain the policy rate at 6.5%, adhering to a stance of withdrawing accommodation. This decision, made with a 4:2 majority, aligns with expectations, as the balance between inflation and growth appears favorable.
The ongoing growth momentum is underpinned by several factors: the government’s sustained focus on capital expenditure, robust private consumption, healthy balance sheets of banks and corporations, high-capacity utilization, and improving business optimism. Consequently, the GDP forecast for 2024-25 has been revised upwards to 7.2% from the previous 7%. This optimistic outlook is fueled by the strong performance of the eight core industries, consistent strength in both the manufacturing and services PMIs, and robust expansion in overall economic activity.
Jun 07, 2024, 12:47 pm IST
RBI Policy Reaction: Colin Shah, MD, Kama Jewelry
RBI’s verdict to maintain the repo rate comes as no surprise on the backdrop of uncertain global scenario, mainly the geo-political tensions that has been a constant concern, thereby stressing the need to be vigilant during these times. With FY25 CPI inflation forecast been kept unchanged at 4.5% followed by softness in inflation in Q2 FY25 brings in a mild relief , however, spillover risk will remain a pressure point in the second half of FY25. However, GDP growth projection for FY25 having increased to 7.2% from the earlier 7% showcases and infuses a belief that the country’s growth story will continue to remain robust, thereby strengthening the disposable income and purchasing power of the buyers. But, with current global economic instability, a muted growth in trade activities of gems and jewellery could be seen until the scenario gains stability.
Jun 07, 2024, 12:46 pm IST
RBI Policy Reaction: Shrinivas Rao, FRICS, CEO, Vestian
RBI kept the repo rate stable at 6.5% for the eighth consecutive time on the back of strong growth momentum. It is a welcome move as headline inflation is still above the RBI’s upper limit of 4% despite marginally easing to 4.83% in April 2024 over the previous month. Moreover, the inflation is anticipated to increase in May 2024 due to an increase in the prices of food items amid nationwide heat waves.
This is probably the last time RBI will maintain status quo. The repo rate may start its descent from the upcoming MPC meeting as higher kharif production is expected amid an above-normal monsoon, easing the prices of food items. Furthermore, this reduction in repo rates may provide respite to the real estate sector and fuel the growth momentum further.
Jun 07, 2024, 12:46 pm IST
RBI Policy Reaction: Piyush Bothra, Co-Founder and CFO, Square Yards
Interest rates significantly influence consumer sentiments, particularly affecting the majority of buyers in the low-to-mid segment. The current market upcycle is driven by the premium segment, which is relatively less sensitive to minor interest rate changes. Hence, the central bank's decision to maintain the status quo is a bit disappointing. A reduction in the benchmark rates would have been ideal as it would have given further buoyancy to the real estate market, especially in the low-to-mid segment, and would have helped a lot of first-time home buyers realize their dream of owning a house.
Although the FY25 forecast for economic growth has been upwardly revised to 7.2% from 7%, and inflation is expected to remain within the target band of 2-6%, signaling towards a positive macroeconomic scenario that will buoy the homebuyer sentiments. Given the current outlook, we anticipate the demand momentum to remain strong in property markets across all major cities in India.
Jun 07, 2024, 12:45 pm IST
RBI Policy Reaction: Vimal Nadar, Senior Director & Head of Research, Colliers India
In the first MPC meeting after the recently concluded general elections, the RBI has maintained status quo. The repo rate remains at 6.5% and withdrawal of accommodation continues. This decision comes against the backdrop of a concerted effort to contain inflation close to 4% on a durable basis. Furthermore, an upward revision of FY 2025 GDP growth rate projection by 20 bps to 7.2% will fuel business optimism across sectors including real estate.
A stable financing environment will continue to benefit homebuyers and developers in both residential and commercial real estate. As central banks across the world ponder over rate cuts, the timing and pace of such reductions in India will remain a key monitorable and should provide further boost to residential activity in the ongoing fiscal year. Developers & institutional investors in the real estate sector will meanwhile continue to expect continuation of structural reforms and policy support from the incoming Central government.
Jun 07, 2024, 12:45 pm IST
RBI Policy Reaction: Ashwin Chadha, CEO, India Sotheby's International Realty
As expected, the MPC has decided to keep the repo rate unchanged at 6.5%. This decision aligns with the MPC's calibrated measures to tackle persistent inflation. The RBI has successfully maintained the resilience of the Indian economy, contributing to sustained growth momentum even amidst a challenging global environment.
The good news is that CPI inflation continues to soften, and the GDP growth rate is projected to remain above 7% for all quarters of FY2024-25. Additionally, the monsoon is expected to be favorable, reducing potential risks to the economy.
Given these positive indicators, we anticipate optimistic sentiments to continue, also the upward trend in housing demand, particularly in the high-end and luxury segments, will persist for the foreseeable future.
Jun 07, 2024, 12:45 pm IST
RBI Policy Reaction: Ajay Kumar Srivastava, Managing Director & CEO, Indian Overseas Bank
We welcome the decision of RBI maintaining a status quo on the repo rate by keeping it unchanged at 6.5% and its GDP growth expectation at 7.2% for FY24. The decision to continue remaining focused on the withdrawal of accommodation reflects a balanced approach to sustain economic growth while keeping inflation in check. RBI’s decision on e-mandates for recurring payments to be extended to fastags, introduction of auto replenishment of UPI-like wallet, and establishment of a digital payments intelligence platform, is all set to promote a resilient banking sector.
Jun 07, 2024, 12:45 pm IST
RBI Policy Reaction: Kanika Singh Chief Risk Officer– IMGC (India Mortgage Guarantee Corporations)
Despite strong headline growth figures, the Monetary Policy Committee (MPC) has maintained current interest rates and its "actively disinflationary" stance to anchor inflation at 4%. In my view, this will have a limited impact on the housing market and housing loans. Bank credit deployment remains robust, with double-digit growth. Overall housing demand stays strong, evidenced by increased sales volumes in both primary and secondary markets. Furthermore, a stable lending ecosystem and the emergence of micro-markets benefitting directly from India's infrastructure push have altered the demand-supply dynamics in residential real estate. Additionally, expectations of monetary easing later in the year might be postponed due to the Indian economy's strong growth momentum. However, food price uncertainties and climate shocks continue to pose risks to this positive outlook.
Jun 07, 2024, 12:44 pm IST
RBI Policy Reaction: Palka Arora Chopra, Director of Master Capital Services Ltd
As anticipated, the Indian central bank maintained its benchmark interest rate, focusing on inflation in the face of ambiguous policy following an unexpected election outcome. This is the eighth straight halt in the past year. Since the April monetary policy in 2023, the RBI has maintained the repo rate at 6.5%. The benchmark interest rate was last adjusted by the RBI in February 2023.
The RBI increased its GDP growth prediction for FY25 from 7% to 7.2% due to better demand conditions in both rural and urban areas, which were supported by the monsoon forecast. Thus far in 2024–2025, the domestic economy has remained resilient. The increasing level of domestic demand is driving the growth of manufacturing activities.
The market will view an increase in GDP trajectory and a maintenance of the 4.5% inflation prediction for FY25 as good signs. Stablei interest rates are expected to benefit banking, finance, and consumer durables, but they would have less of an impact on utilities, healthcare, and technology.
Jun 07, 2024, 12:44 pm IST
RBI Policy Reaction: Gauri Tandle, CFO at Ashwin Sheth Group
For the real estate sector, especially the luxury housing market, the unchanged repo rate translates to continued consumer demand. This demand is essential not only for sectoral growth but also for the broader economic development of the country. Real estate is a major driver of economic activity, contributing significantly to GDP, generating employment, and supporting ancillary industries.
At Ashwin Sheth Group, we view the RBI's decision as a positive reinforcement of our mission to offer the best opportunities for homeownership. Our diverse range of offerings, combined with the stable interest rate environment, positions us well to help homebuyers realize their dreams. The current financial climate allows for more informed and confident investment decisions, fostering growth and prosperity within the sector and beyond.
Jun 07, 2024, 12:44 pm IST
RBI Policy Reaction: Gauri Tandle, CFO at Ashwin Sheth Group
The Reserve Bank of India's (RBI) decision to keep the repo rate unchanged at 6.50% is indeed a strategic and prudent move that holds significant implications for the housing market. By maintaining the status quo, the RBI ensures that home loan interest rates remain stable and attractive, which is crucial for potential homebuyers who prioritize affordability when making purchasing decisions.
Stable interest rates make it easier for buyers to plan and finance their home purchases without the concern of fluctuating loan costs. This stability is particularly beneficial in an environment where the national economy and earning capacities are on the rise. With India's GDP growth projected at 7% for FY25 and inflation forecasted at 4.5%, the macroeconomic conditions are favorable for sustained investment in real estate.
Jun 07, 2024, 12:43 pm IST
RBI Policy Reaction: Shishir Baijal, Chairman and Managing Director, Knight Frank India
Today's policy announcement aligns with our expectations. With the economic outlook revised upwards, we anticipate the RBI will focus on controlling inflation, aiming to bring it under the 4% target. Despite a gradual decline over the past year, consumer headline inflation has averaged 4.8% in the last three months. While core inflation has eased, food inflation remains high, affecting household expenditure. An expected above-normal monsoon should help control food prices and bring the food inflation under control. This would prompt the RBI to perhaps lower interest rates towards end of CY 2024 thereby further fuelling growth especially in the real estate sector, particularly benefitting the affordable housing segment.
Jun 07, 2024, 12:42 pm IST
RBI Policy Reaction: Rohit Garg, Co- Founder& CEO, Olyv (formerly SmartCoin)
The Reserve Bank of India (RBI) has maintained the repo rate at 6.5%, marking the eighth consecutive time post Lok Sabha Elections 2024. This decision underscores the central bank's commitment to fostering stability amidst robust economic growth and a slight easing of inflation to 4.83%. Aligned with the Federal Reserve's approach, the RBI aims to address fluctuating food prices and liquidity volatility, maintaining vigilance in liquidity operations to counter election-induced pressures. The Indian government's pursuit of reducing the fiscal deficit, supported by RBI dividends, further reinforces economic stability. Despite revising the GDP forecast for FY25 to 7.2%, the RBI opted to retain the consumer inflation forecast unchanged. India's economic fundamentals are robust, with FY24 witnessing GDP growth of 8.2%, while inflation remains within the RBI's target range. The policy tone reflects confidence in domestic dynamics while acknowledging global uncertainties.
Jun 07, 2024, 12:19 pm IST
RBI Policy Reaction: Vipul Bhowar, Director - Listed Investments, Waterfield Advisors
The Reserve Bank of India's Monetary Policy Committee (MPC) has again chosen to keep the repo rate unchanged at 6.5% for the eighth consecutive time in its bi-monthly interest rate decision. This decision reflects the RBI's cautious approach to managing inflation and supporting economic growth amidst global uncertainties and domestic challenges.
With the new Modi-led NDA government taking the reins, the RBI is expected to closely monitor its fiscal policies, particularly their potential impact on inflation. This proactive stance underscores the central bank's commitment to maintaining price stability.
Jun 07, 2024, 12:18 pm IST
RBI Policy Reaction: Dhawal Dalal, President & CIO-Fixed Income, Edelweiss MF
The RBI MPC held policy rate steady for 5th time. However the voting changed to 4-2 with 2 MPC members voting for a rate cut. RBI upgraded FY25 GDP growth to 7.2% from 7%, which is positive. However, the RBI was concerned with sticky food inflation amid uptrend in global food prices and industrial commodity prices. Normal monsoon this year is critical for easing of food inflation. RBI also emphasized that there will not be any blind following of the Fed in terms of rate cut as they will give more weightage to local growth inflation dynamic. Overall, a prudent monetary policy in our view with potential rate cuts pushed in the 3rd quarter of FY25.
Jun 07, 2024, 12:18 pm IST
RBI Policy Reaction: Anitha Rangan, Economist, Equirus
While rates are kept unchanged for more than a year, transmission in the banking segment has been incomplete. RBI has flagged this time and again, and in policy too RBI has mentioned the gap of credit and deposit growth. In summary, it is again the lack of transmission. Overall, there is likelihood that credit costs can increase at the margin led by a) higher deposit costs and b) increasing transmission. A GDP growth of 7.2% for FY25, will need to be supported by credit growth at the right cost. However on the other side for home loan borrowers especially the low and middle income group, we expect an increased allocation from PMAY (Both rural and urban). This can cushion the cost of funding for affordable housing which is more the need of the hour.
Jun 07, 2024, 12:18 pm IST
RBI Policy Reaction: Ramani Sastri, Chairman and MD, Sterling Developers
The Indian real estate sector continues to scale new heights and the growth outlook is also projected to be strong. In this context, the status quo stance by RBI is welcome to bolster overall market confidence. With the economy looking up and all signs being positive, there is no hesitation among the homebuyers to invest in residential real estate for long-term returns. Moreover, stable home loan rates improve consumer confidence and enable more informed investment decisions, since there is a noticeable shift in the intent and aspirations of Indian homebuyers. However, a future repo rate cut would serve as a big boost to homebuyer sentiment and enable better affordability, which is an extremely sensitive factor in the housing market. We will continue to see a multi-fold growth in real estate investments since the real estate market is less volatile than other investment markets and delivers higher returns. We also hope that the new government would continue to focus on infrastructure development, lowering home loan interest rates, prioritizing tax incentives, easing regulatory constraints and streamlining approval processes for overall growth of the real estate sector.
Jun 07, 2024, 12:17 pm IST
RBI Policy Reaction: Mohit Jain, Managing Director, Krisumi Corporation
The demand for homes remains stronger, especially in the luxury and high-end segments. The RBI status quo on the policy front is expected to keep the momentum going. However, with potential rate cuts on the horizon, the entire real estate market could see an additional boost as and when it materializes. The mid and premium housing segments will be the biggest beneficiary of any future rate cut.
Jun 07, 2024, 12:17 pm IST
RBI Policy Reaction: Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd
The RBI held rates steady for the eighth time in a row, likely due to high food inflation despite overall CPI falling within their target range. Strong GDP growth in FY24 may have also influenced this decision. However, economists anticipate rate cuts of 25-50 basis points in the second half of the fiscal year if inflation keeps declining. Lower interest rates could further boost the real estate sector, which is already experiencing strong market demand from end-users. We expect the robust demand trend to stay healthy over the next few years, particularly in cities like Gurugram which are witnessing robust infrastructure development.
Jun 07, 2024, 12:17 pm IST
RBI Policy Reaction: Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt Ltd
We welcome the Reserve Bank of India's decision to maintain the repo rate, as it brings stability to the economic scenario. The RBI commitment to controlling inflation remains crucial, to maintain growth and resilience.
The revised GDP growth projection, now expected to be between 7.2% and 7.3% for FY25, aligns well for the economy. A robust economy, coupled with stable interest rates, promises to elevate disposable incomes and bolster borrowers confidence.
It appears that the RBI MPC may continue this pause for the next couple of meetings in FY2025, with a focused view on liquidity management.
Jun 07, 2024, 12:16 pm IST
RBI Policy Reaction: Vimal Nadar, Senior Director & Head of Research, Colliers India
In the first MPC meeting after the recently concluded general elections, the RBI has maintained status quo. The repo rate remains at 6.5% and withdrawal of accommodation continues. This decision comes against the backdrop of a concerted effort to contain inflation close to 4% on a durable basis. Furthermore, an upward revision of FY 2025 GDP growth rate projection by 20 bps to 7.2% will fuel business optimism across sectors including real estate.
A stable financing environment will continue to benefit homebuyers and developers in both residential and commercial real estate. As central banks across the world ponder over rate cuts, the timing and pace of such reductions in India will remain a key monitorable and should provide further boost to residential activity in the ongoing fiscal year. Developers & institutional investors in the real estate sector will meanwhile continue to expect continuation of structural reforms and policy support from the incoming Central government.
Jun 07, 2024, 12:16 pm IST
RBI Policy Reaction: Ashwin Chadha, CEO, India Sotheby's International Realty
As expected, the MPC has decided to keep the repo rate unchanged at 6.5%. This decision aligns with the MPC's calibrated measures to tackle persistent inflation. The RBI has successfully maintained the resilience of the Indian economy, contributing to sustained growth momentum even amidst a challenging global environment.
The good news is that CPI inflation continues to soften, and the GDP growth rate is projected to remain above 7% for all quarters of FY2024-25. Additionally, the monsoon is expected to be favorable, reducing potential risks to the economy.
Given these positive indicators, we anticipate optimistic sentiments to continue, also the upward trend in housing demand, particularly in the high-end and luxury segments, will persist for the foreseeable future.
Jun 07, 2024, 12:16 pm IST
RBI Policy Reaction: Samir Jasuja, CEO and MD of PropEquity
The decision of RBI is on the expected lines. With overall inflation falling within the RBI range, a policy rate cut may not be very far away. Real estate prices have gone up substantially and a future rate cut will give much higher purchasing power to the customer which is the need of the hour. Such a move would be a welcome news for homebuyers across cities including metro cities as well as tier II and III cities.
Jun 07, 2024, 12:15 pm IST
RBI Policy Reaction: Apurva Sheth, Head of Market Perspectives and Research, SAMCO Securities
The RBI governor decided to buck the trend and stayed away from rate cut like its counterparts in ECB and Central Bank of Canada. No one really expected RBI to cut rates before the Fed but the governor made it a point that he isn’t going to follow the footsteps of Fed and prefer to play the game according to the domestic conditions. The RBI concluded the policy without any rate cuts and emphasized that they remain committed to bringing the inflation down to the target of 4%. The bond yields and stock markets haven’t reacted much as everything the governor said and did was on expected lines.
Jun 07, 2024, 12:13 pm IST
RBI Policy Reaction: Swati Saxena, Founder & CEO – 4 Thoughts Finance
On probable lines, the Reserve Bank of India (RBI) has again refrained from tinkering with the policy rate in view of the evolving growth-inflation dynamics, stating that the Indian economy exhibits strong fundamentals and financial stability, and remains focused on ensuring sustainable growth for the Indian economy. The macroeconomic environment is favorable and the outlook for growth and inflation has improved. The industry overall wants policy stability and predictability above all else and a consistent maintenance of the repo rate indicates that the RBI is content with the existing level of interest rates. With the dust settling on the election results and indication of a stable government, there is clarity for the larger economy to steam ahead. This climate will bring in a greater amount of investment into the market and will be moving towards positive direction . The continuation in repo rates also signifies that depositors can continue to benefit from high-interest rates on deposits. Going ahead, we remain optimistic that the RBI will contemplate rate cuts and build a shallow rate cut cycle in order to support lower interest rates and credit demand. Overall, we believe that investor sentiment will continue to remain bullish, supported by the market's persistent strength.
Jun 07, 2024, 12:12 pm IST
RBI Policy Reaction: Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS
In its latest policy announcement, the RBI kept the repo rate unchanged at 6.5% and maintained the policy stance of "Withdrawal of Accommodation" with a 4:2 majority, which is lower compared to the previous meeting, which had a majority of 5:1. This suggests that the RBI may be preparing the market for a change in stance in the upcoming meeting. On a positive note, the RBI upgraded the GDP forecast to 7.2% from an earlier projection of 7%, indicating solid prospects for the domestic economy in the future.
Jun 07, 2024, 12:12 pm IST
RBI Policy Reaction: Shri Madan Sabnavis, Chief Economist, Bank of Baroda
The credit policy has quite expectedly maintained the status quo on both repo rate and stance. There has been a slight revision in the GDP growth forecast to 7.2% which is still lower than our forecast of 7.3-7.4% for FY25. The RBI is sanguine on the growth trajectory and while inflation is to average 4.5% for the year, there is concern on food inflation especially in the wake of the heatwave which has increased prices of horticulture products. But with growth being secure, it gives the RBI room to not commence on rate cuts at this point of time. In fact, quite appropriately the RBI has pointed out that while inflation will go below the 4% mark in Q2, it would be rising again in Q3 and Q4. Therefore it looks like that there will be continuous monitoring of the monsoon and food inflation from now on to gauge the durability of lower inflation before taking a call. Our view is that October can be the time when a rate cut can be considered but will be fully data-driven. A clarification made by the Governor on decisions being based on local conditions is significant because often markets tend to react to Fed statements as they are interpreted as having an impact on the RBI decision on repo rate.
Jun 07, 2024, 12:12 pm IST
RBI Policy Reaction: Vikas Garg - Head of Fixed Income, Invesco Mutual Fund
Non-event policy as MPC maintained status quo on policy rates & stance as “withdrawal of accommodation”. More MPC split appears with 4:2 vote, indicating moving closer to rate cut. Growth – inflation dynamics remains favorable as GDP for FY25 upped to 7.2% with average inflation maintained at 4.5%. Strength on external stability & importance of domestic factors for MPC emphasized again. No mention on surprise outcome of General elections & robust commentary on growth indicates RBI’s comfort on continuation of Government policies. Active liquidity management to continue. Overall, a very balanced policy. Banking liquidity is expected to turn surplus in June/July with Govt spending post elections and FPIs inflows in debt segment. Market focus will be now on new Government’s fiscal policies. For now, we expect positive sentiment to continue for debt market driven by favorable demand-supply dynamics.
Jun 07, 2024, 12:11 pm IST
RBI Policy Reaction: Rajiv Agarwal, MD & CEO, Essar Ports
The RBI's decision to keep the repo rate steady at 6.5% was expected in view of maintaining economic stability. The GDP growth forecast of 7.2% for FY25 is a testament to the resilience and growth potential of our economy. For the ports and infrastructure sector, this stability in lending rates is welcome. The RBI's policy provides a good foundation for the country to enhance investments and contain inflation.
Jun 07, 2024, 12:11 pm IST
RBI Policy Reaction: Anitha Rangan, Economist, Equirus
RBI in its 2nd monetary policy for FY25, maintained policy rate at 6.5% as expected and maintaining withdrawal of accommodation. The key takeaway is a) shift in voting pattern from 5-1 to 4-2 (Dr. Ashima Goyal and Prof. Jayant Varma) are likely the dissenters b) Upwards revision in growth for FY25 to 7.2% from 7.0% while keeping inflation unchanged at 4.5% for the year. Overall, the key reason for maintaining policy rate is the uncertainty on the outlook of domestic inflation led by the food side. According to RBI while core inflation is encouraging and at the lowest level in the current series, it is the food inflation that is playing spoilt sport, requiring vigilance. In addition, crude outlook remains uncertain. A reference was also made that external factors are watched for, to see the impact on domestic inflation. Overall, Indian economy is at an inflextion point with inflation on right track but work to be done. The watch is from global side with global last mile inflation remaining arduous and geo-political risks. For Rbi as we have reiterated earlier growth remaining firm, monetary policy has elbow room to focus on price stability. The growth revision only reiterates that RBI is willing to wait and watch – RBI can watch for longer. RBI has the trinity of patience, perseverance and poise to support the economy!
Jun 07, 2024, 12:11 pm IST
RBI Policy Reaction: Santosh Meena, Head of Research, Swastika Investmar Ltd.
The RBI policy aligns with expectations and is not expected to have a major impact on the market. Attention will now shift to the formation of the new cabinet and global cues. Currently, the market appears strong, and there is a good chance that the bullish momentum will continue. The 20-DMA of 22,600 is likely to provide support to the Nifty, while the high of 23,338 is a key hurdle.
Jun 07, 2024, 12:09 pm IST
RBI Policy Reaction: Sanjay Palve, Senior Managing Director, Essar Capital Ltd
Today's announcement by the Reserve Bank of India to keep the repo rate unchanged at 6.5% for the eighth consecutive time reflects a prudent and balanced approach to managing the country's economic health. By maintaining the repo rate, the RBI has provided stability in external benchmark lending rates, which is a welcome relief for borrowers as their EMIs will not rise. This decision supports a stable financial environment, allowing us to continue focusing on sustainable growth and strategic investments. We remain committed to leveraging this period of stability to drive innovation and efficiency across our operations, contributing to India's economic resilience and progress. The upward revision of the FY25 GDP projection to 7.2% is also a positive indicator of our robust growth trajectory.
Jun 07, 2024, 12:09 pm IST
RBI Policy Reaction: Himanshu Jain, VP - Sales, Marketing and CRM, Satellite Developers Private Limited (SDPL)
The RBI’s decision to maintain the key policy rates is a significant step towards fostering growth. We welcome the measures introduced, as they are poised to create a conducive environment for the real estate sector. The focus on maintaining liquidity and ensuring favorable lending rates will undoubtedly spur housing demand, benefiting homebuyers and developers alike. We are optimistic that these policies will further enhance market confidence and drive sustained growth in the real estate industry.
Jun 07, 2024, 12:09 pm IST
RBI Policy Reaction: Samyak Jain, Director, Siddha Group
We commend the Reserve Bank of India's decision and its role in managing inflation and ensuring economic liquidity. The measures introduced are timely and reflect a balanced approach to sustaining economic growth while maintaining financial stability. The support for real estate is particularly encouraging fostering growth and development in the sector. These steps will help in boosting market confidence and providing the necessary impetus for the real estate industry to thrive.
Jun 07, 2024, 12:08 pm IST
RBI Policy Reaction: Vedanshu Kedia - Director, Prescon Group
We welcome the Reserve Bank of India's decision which reflects a proactive approach towards maintaining economic stability and fostering growth. We are particularly encouraged by the emphasis on maintaining liquidity and supporting financial institutions. These steps will contribute significantly to the sector's recovery and growth, enabling us to continue delivering high-quality housing solutions to our customers. We remain optimistic about the future and look forward to the positive impact of these policies on the broader economy.
Jun 07, 2024, 12:08 pm IST
RBI Policy Reaction: Rohan Khatau - Director, CCI Projects
RBI's decision to maintain the policy rate is a prudent step, considering the current economic conditions and inflationary trends. We believe that the RBI's balanced approach will foster a favorable environment for the real estate sector, enabling sustained growth and stability. We are optimistic that these measures will boost consumer confidence and investment, providing a robust foundation for future developments.
Jun 07, 2024, 12:08 pm IST
RBI Policy Reaction: Pritam Chivukula, Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty
We would like to commend the Reserve Bank of India (RBI) for its prudent and cautious approach amidst the current economic landscape. Post the Lok Sabha elections and as we anticipate the Union Budget next month, it is crucial for the central bank to closely monitor the evolving economic policies. The direction set by these policies will play a significant role in determining future rate decisions. We appreciate the RBI's continued commitment to maintaining economic stability and look forward to seeing how these developments will shape the economic environment in the coming months. We are confident that the RBI's careful and considered approach will support the broader economic goals of the country.
Jun 07, 2024, 11:50 am IST
RBI Policy Reaction: Prashant Sharma, President, NAREDCO Maharashtra
We welcome the Reserve Bank of India's decision to maintain its current policy rates amidst the backdrop of volatile food prices, ongoing geopolitical tensions, and the Federal Reserve's extended pause on interest rates. Looking ahead, it is crucial for the RBI to continue monitoring the evolving economic landscape, particularly in the aftermath of the Lok Sabha elections and the upcoming Union Budget. The policies and fiscal measures introduced next month will play a significant role in shaping the trajectory of our economy. A balanced and forward-looking approach will be essential to support sustained growth and stability in the real estate sector and the broader economy. We remain optimistic that the RBI, with its vigilant and adaptive stance, will continue to foster an environment conducive to economic resilience and development.
Jun 07, 2024, 10:49 am IST
RBI Policy Reaction: Anuj Puri, Chairman - ANAROCK Group
The Reserve Bank of India's decision to keep the repo rate unchanged is a boon for the Indian real estate sector. This stability ensures that home loan interest rates remain low, making housing more affordable for potential buyers. With unchanged borrowing costs, both developers and homebuyers benefit from increased market confidence and predictability.
The mid-range and premium property segments together account for more than 55% of the current supply. Together, they recorded approx. 76,555 units sold in Q1 2024 - nearly 60% of the total sales. The buyers of this segment are sensitive to volatile interest rates, and upward hikes would cause many of them to defer home purchases. This policy continuity supports sustained demand in these two segments.
The affordable housing sector is, of course, most cost sensitive. While PMAY Urban has sanctioned 118.64 lakh homes against a demand of 112.24 lakh homes, affordable housing (homes priced under INR 40 lakhs) sales in Q1 2024 recorded 26,545 units - a mere 20% of the total sales. However, as we have seen, unchanged home loan rates alone are insufficient to induce new vibrancy in the affordable segment. It is hoped that the government will soon introduce further incentives to support it.
With the mandate of a stable government now manifest in an unchanged monetary policy, the housing sector's overall growth momentum will continue.
Jun 07, 2024, 10:48 am IST
Governor Das Shares Insights On Harbinger 2024 & UPI-Lite Wallet
RBI Governor Shaktikanta Das shed light on the upcoming Harbinger 2024 event and the introduction of auto replenishment for UPI-Lite wallet, along with the rationalization of guidelines for export and import of goods and services under FEMA. The next edition of Harbinger 2024, the global hackathon, will be launched soon with two central themes: zero frauds and inclusivity for the differently abled.
Jun 07, 2024, 10:40 am IST
Top 5 Gainers and Losers Today
Stock Market Live Updates
Jun 07, 2024, 10:40 am IST
RBI Governor Says
RBI to introduce auto replenishment of UPI-Lite wallet.
Jun 07, 2024, 10:39 am IST
RBI Governor Says
RBI ti include some recurring payments under e-mandate framework.
Jun 07, 2024, 10:38 am IST
RBI Governor Says
RBI will rationalise guidelines for export and import of goods and services under FEMA.
Jun 07, 2024, 10:37 am IST
RBI Governor Says
RBI to set up a digital payments intelligence platform.
Jun 07, 2024, 10:37 am IST
RBI Governor Says
RBI to review limit for bulk deposits in banks.
Jun 07, 2024, 10:36 am IST
RBI Governor Says
India's forex reserves hit a new high of 1.5 billion as of May 31, 2024.
Jun 07, 2024, 10:35 am IST
RBI Governor Says
Current Account Deficit (CAD) for FY25 is expected to remain within sustainable levels.
Jun 07, 2024, 10:34 am IST
RBI Governor Says
RBI remains confident on meeting external financing requirements comfortably.
Jun 07, 2024, 10:33 am IST
RBI Governor Says
FPI flows surged in FY24 with an inflow of .6 billion.
Jun 07, 2024, 10:33 am IST
SENSEX and NIFTY
Stock Market Live Updates
Jun 07, 2024, 10:32 am IST
RBI Governor Says
India is the largest recipient of remittances globally.
Jun 07, 2024, 10:32 am IST
RBI Governor Says
Some companies still charge fees which is not listed in key fact statement.
Jun 07, 2024, 10:31 am IST
RBI Governor Says
Regulatory freedom should be used judiciously to ensure fair practices.
Jun 07, 2024, 10:30 am IST
RBI Governor Says
RBI has also observed that some NBFCs and MFIs interest rates are high and usurious.
Jun 07, 2024, 10:29 am IST
RBI Governor Says
A persistent gap between credit and deposit rates warrant a reassessment at banks.
Jun 07, 2024, 10:28 am IST
RBI Governor Says
Recent data suggests modertaion in bank loans to NBFCs.
Jun 07, 2024, 10:27 am IST
RBI Governor Says
Monitoring Data to assess ascertain if further measures are necessary for unsecured lending.
Jun 07, 2024, 10:26 am IST
RBI Governor Says
Gross NPA of banks were below 3% as of March end data.
Jun 07, 2024, 10:26 am IST
RBI Governor Says
Regulated companies should improve compliance across organisations.
Jun 07, 2024, 10:25 am IST
RBI Governor Says
NBFCs also displayed strong financials, which is in-line with banks.
Jun 07, 2024, 10:24 am IST
RBI Governor Says
RBI to remain nimble and flexible in liquidity management.
Jun 07, 2024, 10:23 am IST
RBI Governor Says
RBI will deploy mix of liquidity instruments as needed.
Jun 07, 2024, 10:23 am IST
RBI Governor Says
Risk provisioning of CRB will further strengthen RBI's balancesheet.
Jun 07, 2024, 10:22 am IST
RBI Governor Says
Rupee has moved in a narrow range with low volatility so far.
Jun 07, 2024, 10:21 am IST
RBI Governor Says
Risk provisioning will further strengthen RBI balancesheet.
Jun 07, 2024, 10:21 am IST
RBI Governor Says
In credit market, monetary transmission remains ongoing.
Jun 07, 2024, 10:20 am IST
RBI Governor Says
Need inflation to fall to 4% on a durable basis.
Jun 07, 2024, 10:19 am IST
RBI Governor Says
RBI actions primarily determined by domestic growth and inflation conditions.
Jun 07, 2024, 10:19 am IST
RBI Governor Says
Q2FY25 CPI inflation forecast unchanged at 3.8%.
Jun 07, 2024, 10:18 am IST
RBI Governor Says
Repeated Food Price shocks slowed down disinflation process.
Jun 07, 2024, 10:17 am IST
Headline inflation continues to be on a disinflation trajectory
Jun 07, 2024, 10:17 am IST
RBI Governor Says
Q4FY25 CPI inflation forecast unchanged at 4.5%.
Jun 07, 2024, 10:16 am IST
RBI Governor Says
Q3FY25 CPI inflation forecast unchanged at 4.6%.
Jun 07, 2024, 10:15 am IST
RBI Governor Says
Q1FY25 CPI inflation forecast unchanged at 4.9%.
Jun 07, 2024, 10:14 am IST
RBI Governor Says
FY25 CPI inflation forecast unchanged at 4.5%.
Jun 07, 2024, 10:14 am IST
RBI Governor Says
Q4FY25 GDP growth target raised to 7.2% from 7% earlier.
Jun 07, 2024, 10:13 am IST
RBI Governor Says
Q3FY25 GDP growth target raised to 7.3% from 7% earlier.
Jun 07, 2024, 10:13 am IST
RBI Governor Says
Q2FY25 GDP growth target raised to 7.2% from 6.9% earlier.
Jun 07, 2024, 10:12 am IST
RBI Governor Says
Q1FY25 GDP growth target at 7.3% compared to 7.1% earlier.
Jun 07, 2024, 10:11 am IST
RBI Governor Says
FY25 real GDP growth projection raised to 7.2% from 7% earlier.
Jun 07, 2024, 10:10 am IST
RBI Governor Says
Merchandise exports expanded in April.
Jun 07, 2024, 10:09 am IST
RBI Governor Says
FY25 domestic economic activity has been resiliant.
Jun 07, 2024, 10:08 am IST
RBI Governor Says
Inflation is easing but final journey of disinflation might be tough.
Jun 07, 2024, 10:08 am IST
RBI Governor Says
MPC remains vigilant to upside risks from inflation, especially food inflation.
Jun 07, 2024, 10:06 am IST
RBI Governor Says
RBI MPC decided by majority of 4:2 to keep policy rates unchanged.
Jun 07, 2024, 10:06 am IST
RBI Governor Says
RBI maintains stance of 'Withdrawal of Accommodation'.
Jun 07, 2024, 10:05 am IST
RBI Governor Says
MSF & SDF rates unchanged at 6.75% and 6.25%, respectively.
Jun 07, 2024, 10:04 am IST
RBi Governor Says
RBI keeps key Repo Rate unchanged at 6.50%.
Jun 07, 2024, 10:04 am IST
RBI Governor Says
RBI to take steps to enhance India's global footprint.
Jun 07, 2024, 10:03 am IST
RBI Governor Says
Indian economy exhibits strong fundamentals and financial stability.
Jun 07, 2024, 10:02 am IST
RBI Governor Says
Need to remain vigilant in an unsettled global environment.
Jun 07, 2024, 10:01 am IST
RBI Monetary Policy
RBI Governor Shaktikanta Das starts his Monetary Policy speech.
Jun 07, 2024, 9:51 am IST
RBI Policy Expectations: Suman Bannerjee, CIO, Hedonova
We believe that the upcoming RBI MPC outcome is expected to maintain the status quo on interest rates, keeping them at 6.5% for the eighth consecutive policy meeting. Despite the recent election outcome and fluid political environment, the RBI will likely hold off on rate cuts until the full budget is presented in July 2024, providing a clearer fiscal perspective. The RBI may not change its monetary stance but could guide future shifts from "gradual withdrawal of accommodation" to "neutral." Additionally, while inflation estimates for FY25 are expected to remain at 4.5%, an upgrade in GDP growth projections is possible.
Jun 07, 2024, 9:21 am IST
RBI Policy Expectations: Mandar Pitale, Head- Treasury, SBM Bank India
MPC is expected to continue with its firm commitment to focus on a 4% goal post for CPI securing using appropriate monetary policy tools. During the last few months, RBI has actively managed the banking system liquidity to calibrate monetary conditions despite stable policy rates. The resilience of GDP growth backed by sustained momentum in domestic demand conditions, is providing the space to defer the start of the easing cycle staying focused on inflation.
At the backdrop of the fragile outlook for the global economy amidst stalling in the descent of inflation and thus reigniting risks to global financial stability, MPC is expected to hold policy rates for a foreseeable future going ahead with a likelihood of starting rate easing cycle in last quarter of current calendar year. Favourable monsoon impact on the food inflation trajectory will have a major influence on the commencement of the easing cycle.
Jun 07, 2024, 8:47 am IST
RBI Policy Expectations: Ramani Sastri - Chairman & MD, Sterling Developers
The demand for residential real estate has been registering significant growth in recent times and continues to exhibit momentum as we proceed ahead in 2024. With the economy looking up and all signs being positive, there is no hesitation among the among to invest in residential real estate to either own a home or for long-term returns. In this context, it would be better to maintain status quo in the upcoming RBI Monetary Policy as this would give a further fillip to the demand for residential property and enhance market confidence. Moreover, stable home loan rates improve consumer confidence and enable more informed investment decisions, since there is a noticeable shift in the intent and aspirations of Indian homebuyers. Ofcourse, a future repo rate cut would serve as a big boost to homebuyer sentiment and enable better affordability, which is an extremely sensitive factor in the housing market. We will continue to see a multi-fold growth in real estate investments since the real estate market is less volatile than other investment markets and delivers higher returns. Also, elections in India have had significant effects on various economic sectors, including real estate, due to varied changes in policy direction. We believe that policy stability and conducive economic environment could catalyze further growth in the real estate market.
Jun 07, 2024, 8:15 am IST
RBI Policy Expectations: Vinod Nair, Head of Research, Geojit Financial Services
The RBI is expected to maintain its current stance. Although the CPI inflation declined to 4.83% from the previous month’s 4.85%, food inflation remains stubbornly high at 8.7%. As a result, RBI is likely to maintain the status quo until inflation is brought within the target range of 4% +/- 2%. Other challenges include extreme weather conditions, stock market volatility, and geopolitical tensions.
It is likely to be a non-event for the Markets. The market will focus on the inflation and GDP forecast of FY25, a reduction in inflation and increase in GDP trajectory will be taken positive. However the chance is low in this policy rather than in the next policy as the new coalition structure, monsoon and FDA policy is reviewed.
Jun 06, 2024, 4:43 pm IST
Factors To Watch: Domestic Bond Yields
Since the last policy announcement, Indian government 10-year bond yields have decreased by 14 basis points, currently trading around 6.98%, down from 7.09% before the April policy. Factors such as the central government's bond buyback program, limited borrowing in weekly auctions, and improved prospects of a normal monsoon have supported domestic yields.
Jun 06, 2024, 4:41 pm IST
Factors To Watch: System Liquidity
On average, system liquidity was in deficit in May 2024 (up to May 30) at Rs 1.42 lakh crore, compared to a surplus of Rs 20,240 crore in April 2024.
Jun 06, 2024, 4:38 pm IST
Factors To Watch: ECB Outcome On Interest Rates
Investors are now focusing on the European Central Bank’s (ECB) interest rate decision on Thursday. According to a Reuters poll, the central bank is expected to reduce borrowing costs by 25 basis points from their record-high levels.
Jun 06, 2024, 4:33 pm IST
Factors To Watch: US Inflation
Data released on Friday indicated that US inflation remained stable in April, with the personal consumption expenditures (PCE) price index rising by 0.3%, mirroring the unrevised increase from March. On a year-on-year basis, the PCE price index saw a 2.7% rise, consistent with the growth observed in March.
The softer inflation data has led to increased speculation about a potential interest rate cut by the Federal Reserve in September. According to the CME FedWatch Tool, traders currently see about a 54% chance of a rate cut by then.
Additionally, price reductions by major US retailers and new data indicating a slowdown in consumer spending could bolster the Fed's confidence in the declining inflation trend, as reported by Reuters.
Jun 06, 2024, 4:32 pm IST
Factors To Watch: India Inflation Data
The domestic CPI for April 2024 indicates that inflation remains relatively stable at 4.8%, compared to 4.9% in March 2024. According to the RBI's April policy statement, the central bank anticipates that inflation will average 4.9% in Q1 before decreasing to 3.8% in Q2.
Jun 06, 2024, 4:31 pm IST
Factors To Watch: India GDP Growth
Recent data indicates that Indian economic activity remains robust, with the annual GDP growth for FY24 revised upward from 7.6% in the second advanced estimates to 8.2% in the provisional estimates. This is an improvement over the 7% growth recorded in FY23.
Jun 06, 2024, 4:27 pm IST
RBI Policy Expectations: Swati Saxena, Founder & CEO – 4 Thoughts Finance
In the forthcoming Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) is anticipated to adopt a prudent stance. Recent economic indicators reveal a deceleration in GDP growth to 7.8% year-on-year in the fourth quarter of the last fiscal year, down from 8.6% in the preceding quarter, yet an improvement from the 6.1% growth observed in the corresponding quarter of the previous year. This nuanced economic landscape suggests the RBI will likely prioritise bolstering economic recovery while vigilantly monitoring inflationary trends. The stronger-than-expected Q4 growth prompted the National Statistics Office (NSO) to revise the fiscal 2024 GDP growth estimate upwards to 8.2%, from the previously projected 7.6%.
Given these dynamics, the RBI is expected to maintain current policy rates to stimulate investment and consumption while carefully balancing the imperatives of fostering economic growth and mitigating inflationary pressures. Overall, we anticipate that investor sentiment will remain bullish, bolstered by the market's ongoing resilience and consistent performance. This optimistic outlook is underpinned by several key factors, including robust economic indicators, favorable corporate earnings reports, and sustained confidence in future growth prospects. Additionally, the influx of institutional investments and the continued availability of liquidity are likely to support this positive market sentiment, ensuring that the bullish trend persists in the foreseeable future.
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