Apr 05, 2024, 12:41 pm IST
RBI Governor: Future Rate Action Tied To Evolving Inflation Trajectory
In the ongoing live session of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) Meeting for 2024, Governor Shaktikanta Das emphasized that any future rate adjustments are intricately connected to the unfolding trajectory of inflation.
Governor Das underscored that the course of RBI's monetary policy is deeply influenced and shaped by the prevailing domestic economic conditions. He emphasized the pivotal role of inflation dynamics in guiding the central bank's decision-making process regarding interest rates.
Apr 05, 2024, 12:40 pm IST
RBI Deputy Governor Michael Patra Reiterates Policy On Forex Derivatives
During the live session of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) Meeting for 2024, Deputy Governor Patra addressed the issue of foreign exchange (FX) derivatives rules, reaffirming the RBI's stance on policy consistency.
Deputy Governor Patra emphasized that the RBI's policy regarding foreign exchange risk management has remained steadfast over recent years, with no deviation in approach. He clarified that the primary purpose of FX derivatives is hedging, serving as a crucial tool for managing underlying exposure in the market.
However, Patra expressed concern over instances where certain market participants may be misusing the relaxed regulations by assuming that the absence of underlying exposure is permissible. He stressed that such actions constitute a violation of the law and emphasized the importance of adhering to regulatory guidelines in all FX derivative transactions.
Apr 05, 2024, 12:39 pm IST
Governor Das Emphasizes Ongoing Task On Inflation
During the live proceedings of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) Meeting for 2024, RBI Governor Shaktikanta Das highlighted that the task regarding inflation is still pending. Despite ongoing efforts, the central bank remains focused on addressing this critical economic factor.
Looking ahead to the RBI's centenary milestone, Governor Das emphasized that the primary objectives would revolve around bolstering financial stability and fostering growth within the financial sector. Ensuring the stability of the Indian Rupee remains a paramount priority for the RBI in its pursuit of economic equilibrium.
Governor Das underlined that while the financial sector has exhibited resilience, there is an ongoing commitment to further fortify its stability. This dedication aligns with the RBI's overarching goal of nurturing a robust and sustainable financial environment conducive to the country's economic growth and development.
Apr 05, 2024, 12:37 pm IST
RBI Monetary Policy: RBI Governor Addresses Media After Policy Outcome
RBI Governor Shaktikanta Das addresses the media after the announcement of first monetary policy of FY25.
Apr 05, 2024, 11:53 am IST
Ms. Madhavi Arora, Lead Economist, Emkay Global Financial Services on RBI MPC Announcement
Ms. Arora says as we expected, the MPC policy took recognition of the fluidity of global narratives, even as domestic dynamics have stayed favorable. This suggests that when needed, the aim of financial stability may even precede inflation management. We have long maintained that the RBI policy has been somewhat pegged to the Fed, specifically over the last two years, even as it formally targeted inflation. This seems fair, as external dynamics have been fluid, implying that the policy prerogative needs to be flexible to ensure financial stability. The fluidity of global narratives and policy repricing, in conjunction with the near-term problem of plenty on INR/bonds, could make it arduous for the RBI to find a balance in its policy biases. Thus we maintain the RBI’s tone will slowly tiptoe to ‘Gracklish’ from the usual ‘Hawk-Dove’ signaling, implying a non-committal stance and limited definite forward guidance ahead. While bull-steepening of India bonds looks to be a popular trade, consistent repricing of Fed cuts could spill over into the RBI’s reaction function and will be cyclically noisy for bonds/FX.
Apr 05, 2024, 11:35 am IST
RBI Policy Reaction: Samyak Jain, Director of Siddha Group
Samyak Jain commended the RBI for its role in managing inflation and ensuring economic liquidity. "The real estate market's strong performance, fueled by growing homeownership demand and increasing income levels, positions us for a surge in demand. We are confident this growth will persist throughout the year," Jain remarked.
"For homebuyers, the unchanged policy rates mean stable loan interest rates, making it an ideal time for potential homeowners to secure loans at attractive rates. Mr. Himanshu Jain, VP of Sales, Marketing, and CRM at Satellite Developers Private Limited (SDPL), noted the positive impact of the RBI's decision on inflation and liquidity. He highlighted the boost in sales during the festive and post-festive seasons, expecting the trend to motivate more buyers towards homeownership," Jain added.
Apr 05, 2024, 11:33 am IST
RBI Policy Reaction: Pritam Chivukula, Vice President of CREDAI-MCHI and Co-Founder & Director of Tridhaatu Realty
He praised the RBI for its delicate balance between fostering growth and controlling inflation. "The housing sector's triumph in recent quarters is commendable, supported by government initiatives aimed at revitalizing the real estate market. The RBI's recent policy decision is a significant indicator of continued growth, expected to boost consumer confidence and drive investments in property," he remarked.
"The RBI's stance is expected to stimulate investment in real estate by keeping borrowing costs for consumers stable. This stability is anticipated to maintain the momentum in home purchases witnessed in recent quarters, according to experts," he added.
Apr 05, 2024, 11:32 am IST
RBI Policy Reaction: Prashant Sharma, President of the National Real Estate Development Council (NAREDCO) Maharashtra
He attributed a recent surge in home sales to this positive financial environment, bolstered by optimistic consumer sentiment and supportive government policies. "We foresee an escalation in demand, particularly within the affordable and mid-segment housing markets. This trend is expected to persist, with hopes of a future reduction in the repo rate." Sharma noted.
Apr 05, 2024, 11:02 am IST
RBI Policy Reaction: Anuj Puri, Chairman - ANAROCK Group
"Housing sales across the top 7 cities have been phenomenal in the last few quarters, even though prices are rising steadily. As per ANAROCK Research, we saw total housing sales of over 1.30 lakh units across the top 7 cities in Q1 2024 - the highest quarterly sales in the last decade. Average residential prices across these cities have seen a significant jump in the last one year – ranging between 10-32% in Q1 2024 when compared to Q1 2023. Thus, the breather which RBI's unchanged repo rate will provide to home loan borrowers is apt and welcome."
Apr 05, 2024, 11:01 am IST
RBI Policy Reaction: Anuj Puri, Chairman - ANAROCK Group
"Aptly and as expected, the RBI has kept the repo rates unchanged at 6.5%. The Indian economy is going strong and inflation is reined in, though it has yet to come within the threshold of RBI’s target. The decision to maintain status quo will keep the ongoing residential real estate sales momentum on course and unimpeded. Aspiring homebuyers eyeing a purchase will proceed with confidence."
Apr 05, 2024, 10:59 am IST
RBI Governor Das Reveals 14 VRRR Operations Conducted To Manage Seasonal Liquidity Fluctuations
RBI Governor Shaktikanta Das disclosed that the Reserve Bank of India (RBI) executed 14 Variable Rate Reverse Repo (VRRR) operations during the months of February and March to address intermittent seasonal liquidity fluctuations. Das highlighted that the liquidity situation witnessed improvement in March, with system liquidity intermittently transitioning into surplus territory.
"We conducted 14 VRRR operations in February-March to absorb intermittent seasonal liquidity. Conducted both main and fine-tuning VRR operations during this period as well," Governor Das remarked. He emphasized the necessity of conducting VRRR auctions in response to the return of surplus liquidity conditions in recent weeks.
Apr 05, 2024, 10:56 am IST
RBI Governor Stresses Importance Of Governance & Regulatory Compliance For Banks, NBFCs
RBI Governor Shaktikanta Das underscored the critical importance of governance and adherence to regulatory frameworks for banks, non-banking financial companies (NBFCs), and other financial entities. Das emphasized that these institutions must consistently prioritize governance and regulatory compliance, maintaining vigilance over these aspects at all times. He reiterated the RBI's commitment to fostering constructive dialogue with stakeholders in this regard.
Das noted that the recommendations of the Regulations Review Authority 2.0 have been substantially implemented, serving as a benchmark for effective communication between regulators and regulated entities (REs). As part of this process, and following the establishment of internal review groups in 2023, over 1,000 circulars have been rescinded, reflecting a proactive approach to streamlining regulatory procedures.
Moreover, Governor Das highlighted that the financial performance indicators of NBFCs are in alignment with those of banks based on the latest available data. This observation underscores the importance of maintaining robust financial health and adherence to regulatory standards across the entire spectrum of financial institutions.
Apr 05, 2024, 10:53 am IST
RBI Governor Das Reaffirms Commitment To Market-Determined Rupee Rate
RBI Governor Shaktikanta Das has reiterated the Reserve Bank of India's (RBI) dedication to ensuring that the Indian Rupee (INR) exchange rate remains determined by market forces. Speaking on the sidelines of an event, Das highlighted the gradual reduction in the cost of receiving remittances and the milestone achievement of India's forex reserves, which surged to an unprecedented high of USD 645.6 billion as of March 29, 2024.
Das emphasized the central bank's priority in fortifying India's forex reserves, stating, "It is our prime focus to build a strong forex buffer umbrella which will help us when the cycle turns, when it rains heavily." This commitment underscores the RBI's proactive approach to safeguarding the stability and resilience of India's currency amidst evolving global economic dynamics.
Apr 05, 2024, 10:43 am IST
RBI Governor Says
Will allow use of third party apps for UPI payments.
Apr 05, 2024, 10:42 am IST
RBI Governor Says
To allow distribution of CBDC through non-ank payment system operators.
Apr 05, 2024, 10:41 am IST
Stock Market Live Updates
Sensex and Nifty
Apr 05, 2024, 10:41 am IST
RBI Governor Says
Will allow cash deposits at ATM machines through UPI.
Apr 05, 2024, 10:40 am IST
RBI Governor Says
Will allow small finance banks to use permissible Rupee derivative products.
Apr 05, 2024, 10:39 am IST
RBI Governor Says
Will notify trading of sovereign green bonds at IFSC.
Apr 05, 2024, 10:39 am IST
RBI Governor Says
Indian Rupee saw lowest volatility in FY24 vs last three years.
Apr 05, 2024, 10:38 am IST
RBI Governor Says
Liquidity conditions eased in February-March, and have turned Surplus since March.
Apr 05, 2024, 10:37 am IST
RBI Governor Says
Want to ensure price stability on enduring basis to ensure sustained growth.
Apr 05, 2024, 10:36 am IST
RBI Governor Says
It is essential that CPI inflation continues to moderate and aligns to the 4% target.
Apr 05, 2024, 10:35 am IST
RBI Governor Says
Food inflation continues to show considerable volatility.
Apr 05, 2024, 10:35 am IST
RBI Governor Says
Confident of meeting external financing need comfortably.
Apr 05, 2024, 10:31 am IST
RBI Governor Says
Q2FY25 CPI Inflation Forecast Lowered To 3.8% From 4% Earlier.
Apr 05, 2024, 10:30 am IST
RBI Governor Says
Q4FY25 GDP growth target raised to 7% vs 6.9% earlier.
Apr 05, 2024, 10:25 am IST
RBI Governor Says
Q4FY25 CPI Inflation Forecast Lowered To 4.5% From 4.7% Earlier.
Apr 05, 2024, 10:25 am IST
RBI Governor Says
Q3FY25 CPI Inflation Forecast Unchanged At 4.6%.
Apr 05, 2024, 10:23 am IST
RBI Governor Says
Q1FY25 CPI Inflation Forecast Lowered To 4.9% From 5% Earlier.
Apr 05, 2024, 10:22 am IST
RBI Governor Says
FY25 CPI Inflation Seen At 4.5%.
Apr 05, 2024, 10:21 am IST
RBI Governor Says
Q3FY25 GDP Growth Target Unchanged At 7%
Apr 05, 2024, 10:20 am IST
RBI Governor Says
Q2FY25 GDP Growth Target Raised To 6.9% From 6.8% Earlier.
Apr 05, 2024, 10:20 am IST
RBI Governor Says
Q1FY25 GDP Growth Target Revised To 7.1% Versus Previous Target Of 7.2%.
Apr 05, 2024, 10:19 am IST
Stock Market Live Updates
NIFTY
Apr 05, 2024, 10:18 am IST
Rupee Holds 83.42 Against US Dollar After RBI Keeps Key Rates Unchanged
The Indian rupee traded at 83.42, appreciating by 0.22% against the US dollar at the interbank forex market. This comes after RBI kept key rates unchanged with policy repo rate at 6.5%, in-line with street expectations.
Apr 05, 2024, 10:16 am IST
RBI Governor Says
FY25 Real GDP Growth Projected At 7%.
Apr 05, 2024, 10:15 am IST
RBI Governor Says
Core inflation has declined steadily.
Apr 05, 2024, 10:14 am IST
RBI Governor Says
Total flow of resources to commercial sector from banks is significatly more than previous year.
Apr 05, 2024, 10:13 am IST
RBI Governor Says
Services sector exhibited broad based buoyancy registering strong growth.
Apr 05, 2024, 10:12 am IST
RBI Governor Says
Grown and inflation dynamics have played out favourably.
Apr 05, 2024, 10:11 am IST
RBI Governor Says
Emerging economies with rising debt could be vulnerable.
Apr 05, 2024, 10:08 am IST
RBI Governor Says
RBI MPC Decided By Majority 5:1 To Keep Policy Rates Unchanged.
Apr 05, 2024, 10:07 am IST
RBI Governor Says
Food Inflation Pressure Accentuated In February.
Apr 05, 2024, 10:07 am IST
RBI Governor Says
RBI Maintains Stance Of 'Withdrawal Of Accomodation'.
Apr 05, 2024, 10:06 am IST
RBI Governor Says
MSF & SDF Rates Unchanged At 6.75% And 6.25%, Respectively.
Apr 05, 2024, 10:05 am IST
RBI Governor Says
RBI keeps repo rates unchanged at 6.5% for the seventh consecutive time.
Apr 05, 2024, 10:04 am IST
RBI Governor Says
Numerous evenyts have occured over 9 decades of the RBI.
Apr 05, 2024, 10:03 am IST
RBI Governor Says
This is the first Monetary Policy of FY25.
Apr 05, 2024, 10:02 am IST
RBI Monetary Policy
RBI Governor Shaktikanta Das starts his Monetary Policy speech.
Apr 05, 2024, 9:00 am IST
RBI Policy Expectations: Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Shares and Stock Brokers
"Rate-cut expectations in the US have been significantly re-priced, with the consensus moving from six cuts to three in CY24. The sticky inflation in the initial months and the strong growth led the Fed to raise its expectations of growth and inflation. Further, BIS estimates the natural rate of interest being higher, post-pandemic, which implies that the policy is not as restrictive as previously thought (affirmed by financial conditions indices, suggesting easiness). Hence, though little economic logic, the backdrop of presidential elections may make the Fed hesitant to cut rates toward the year-end, with a 50/50 chance of June cuts. Besides, parts of Europe have already or are about to enter an easing cycle. This has pushed DXY higher, which would be a negative for the rupee."
Apr 05, 2024, 8:47 am IST
RBI Policy Expectations: Suman Bannerjee, CIO, Hedonova
"We think the Reserve Bank of India (RBI) will likely maintain the repo rate at 6.5 percent. If this goes as anticipated, it would reinforce stability in the financial markets. This decision aligns with market expectations and reflects the RBI's commitment to managing inflation and supporting economic growth. Consequently, we anticipate it could sustain positive market sentiment, bolstering investor confidence in the domestic economy. However, any unexpected deviation from this anticipated decision could introduce uncertainty and potentially lead to fluctuations in market dynamics, influencing investment strategies in the short term."
Apr 04, 2024, 4:58 pm IST
Expectations For RBI Policy: Shraddha Umarji, Economist - Institutional Research at Prabhudas Lilladher
“Reserve Bank of India will likely keep repo rate unchanged at 6.5%. Stance will also be unchanged for better transmission of the delivered rate hikes (of 250 bps so far). Right now, food inflation is high so the biggest risk going ahead is monsoon. IMD has forecast normal monsoon for the year, so timely kharif sowing can bring down food inflation. Till then, RBI is unlikely to cut interest rates. The central bank will also take cues from what Fed and ECB are doing when it comes to rates. So it is unlikely that rate cuts will happen before October. However, RBI could change its stance to 'neutral' in June or August. Meanwhile, GDP growth for FY25 might be revised upwards to 7.3-7.4% from 7% earlier as all macroeconomic data has been robust.”
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