RBI Monetary Policy Live Updates: RBI Maintains Status Quo, Keeps Repo Rate Unchanged; Guv Addresses Paytm

The Reserve Bank of India (RBI) is back in the limelight for its bi-monthly monetary policy. Six-member monetary policy committee (MPC) chaired by RBI governor Shaktikanta Das had commenced its three-day last policy meeting for FY24 from February 6, and the outcomes will be announced in the first half of 8.

The majority of economists expect RBI to continue on its status quo path, keeping the repo rate at 6.5% and focused on the withdrawal of accommodation stance, as per a poll of 25 economists conducted by GoodReturns.In.

According to a poll, 25 economists are predicting a status quo with the repo rate at 6.5%, the standing deposit facility (SDF) rate remaining unchanged at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.

Also, these economists expect the MPC to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns with the target while supporting growth.

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Feb 08, 2024, 5:23 pm IST

Mihir Vora, CIO, TRUST Mutual Fund Speaks On RBI MPC Outcome:

"The Monetary Policy Committee (MPC) convened against a backdrop of softening headline inflation, stable core inflation, and a budget that is both fiscally prudent and non-inflationary. On the global front, recent data points to continued robustness of growth against general expectations of a slowdown. The US Fed removed the tightening bias from its statement leading to a question of when the rate cut cycle begin. Geopolitical unrest in the middle east and Red Sea region continue to possess key risks to fledgling global recovery," said Mihir Vora. Indian MPC thus maintained a status quo on rates as well as its stance (withdrawal of accommodation) as it believes the transmission of past rate hikes remains incomplete and the 4% CPI target may still be a bit distant. The MPC has projected FY25 GDP at 7.00% (FY 24 7.3%) and CPI at 4.5% (FY24 5.4%) reflecting a strong economic growth with easing inflation trajectory. The risks to these come from volatile food prices and potential supply side shocks from global factors. Overall the RBI remains a bit conservative while trying to balance the growth-inflation balances."

Feb 08, 2024, 3:36 pm IST

Gems and Jewellery Outlook

Colin Shah, MD, Kama Jewelry: RBI’s decision to keep the repo rate unchanged at 6.5% is a welcome move which comes as per the industry expectations. With the urban consumption remaining consistently robust along with rural demand gaining momentum, this scenario will act as an enabler in boosting jewellery sales in Indian markets. However, the growing geopolitical tensions remains a concern that could impact the supply chain and put pressure on commodity prices, which will eventually hamper the exports. Further, RBI’s decision to allow resident entities to hedge price of gold in OTC segment in IFSC will help entities to safeguard themselves against the price fluctuations and the adverse currency movements. In terms of pricing of the yellow metal, it is expected to remain volatile in the near future which will further be guided by factors like inflation trajectory, strength of the USD, geo-political scenario and any economic development in the West.”

Feb 08, 2024, 3:36 pm IST

Favourable For Govt Securities

Vikas Garg – Head of Fixed Income, Invesco Mutual Fund: Largely a non-event policy as MPC maintained status quo on policy rates and stance as 'withdrawal of accommodation'. FY25 inflation guidance at 4.5% reflects continued moderation even as global factors and food inflation remain uncertain. Robust growth expectation at 7% in FY25. No meaningful announcement to immediately ease systematic liquidity. External factors remain healthy with FPI / ECB inflow & adequate FX reserve. Overall, it doesn’t disrupt the expectation of rate cuts in 2HCY2024 in line with the global rate cut cycle, as also the first split appears with a 5:1 vote on the policy rate. It re-affirms our view that market focus will remain on demand-supply dynamics, which is looking extremely favorable for longer tenor G-Sec, especially after the Government’s aggressive fiscal consolidation.

Feb 08, 2024, 3:36 pm IST

Momentum In Investment Cycle To Drive Economy

Naveen KR, smallcase Manager, Senior Director - Windmill Capital: The RBI has adopted a steady and stable approach to guide the economy ahead. The rate status quo was in line with expectations. Though inflation has moderated, the situation is not completely diffused as geopolitical risks could shoot inflation further up. GDP growth projections are buoyant and as mentioned earlier RBI is taking a cautious approach both in terms of execution and forecasts. One of the most positive things that came out today in the speech today was the steady momentum being witnessed in the investment cycle which will help the economy grow faster.

Feb 08, 2024, 12:52 pm IST

Housing Sector Gets A Big Boost

Piyush Bothra, Co-founder and CFO, Square Yards: The RBI's decision to keep the status quo for the sixth consecutive time is in line with expectations and is poised to bolster consumer confidence. This move is a big positive for the affordable and low-income housing segments, which are responsive to interest rate fluctuations. The decision also fosters confidence among homebuyers by providing stability in loan repayments, consequently stimulating overall consumer spending. With the real estate market currently experiencing a bullish trend, the RBI's persistent repo rate stance is anticipated to amplify the momentum in the housing sector.

Feb 08, 2024, 12:52 pm IST

Real Estate Expects Rate Cut In Next Monetary Policy

Amit Goyal, MD, India Sotheby's International Realty: The encouraging aspect is the remarkable performance of the Indian economy in recent years. Growth is accelerating, surpassing most forecasts, and inflation is on a downward trend. The projected real GDP growth for the next financial year stands at 7%, with risks evenly balanced. Headline inflation has moderated to 5.5%, which is positive news. If the current scenario persists, we may anticipate a rate cut in the next MPC meeting.

Feb 08, 2024, 12:51 pm IST

Demand for Housing To Rise

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd: As expected, the RBI kept rates on hold. The prolonged pause, for the sixth time, since February 2023, is aimed at keeping inflation in check without hurting the economic growth momentum. With the reduction in policy rates would have been the best scenario for interest-sensitive sectors like the real estate sector, policy continuity is the next best outcome for both borrowers and developers alike. The decision allows homebuyers to make informed choices, which is expected to result in enhanced demand across all housing segments in line with the country’s overall economic progress.

Feb 08, 2024, 11:45 am IST

RBI MPC Reaction: Aalesh Avlani, Executive Director & Co- Founder, Credit Wise Capital

"The RBI MPC's decision to uphold the repo rate at 6.5% underscores a prudent stance towards economic stability. Amidst this backdrop, digital lending emerges as a catalyst for stimulating consumer expenditure and supporting the automotive sector. This trend was evident in the last few quarters too, including the festive period, where enhanced affordability in financing options spurred sales growth. We remain optimistic about the future as we navigate these favorable conditions and continue to drive forward".

Feb 08, 2024, 11:45 am IST

RBI MPC Reaction: Anitha Rangan, Economist, Equirus

"In the last policy for this fiscal year, RBI has kept policy unchanged as expected. However the decision is not unanimous with a 5-1 vote. No change in stance. The policy estimates a strong revision in growth for FY25 to 7% from 6.5% (Q1-Q3FY25) in the previous policy. Alongside, inflation is moderately revised downwards to 4.5% from 4.6% in the same period. The governor in his speech noted that “job is not yet finished” with 4% target in mind. While batting for India’s resilience amidst global volatility, it appears that RBI is not in discussion for rate cuts as a) 7% growth is very strong and does not require rate support b) Inflation is subject to food price risks and 4.5% is not 4% on a durable basis. Also no giveaways on liquidity. In the quest to preserve the strength and bat for long term growth, RBI will rather look to maintain vigil and not in any rush to cut rates. The 7% growth does not seem to be needing central bank’s nudge".

Feb 08, 2024, 11:44 am IST

RBI MPC Reaction: Sunil Nyati, Managing Director of Swastika Investmart Ltd

"The RBI keeps interest rates unchanged, as expected, but the tone is still cautious about inflation, and there are no indications of an interest rate cut in the near term, while the market was expecting a dovish stance after the government kept the fiscal deficit at 5.1% in the budget. The market didn't react much to it, but the bias is bullish, so we can expect the banknifty to catch up in the medium term. Technically, 22125 is acting as an immediate hurdle; above this, we can expect a rally towards 22222 and 22350 levels. On the downside, a 20-DMA of 21670 is a strong support level. Banknifty has formed a bottom 45500–44800 zone; however, a 20-DMA of 46300 is an immediate resistance; above this, we can expect a rally towards the 46800–47000 zone."

Feb 08, 2024, 11:44 am IST

RBI MPC Reaction: Edul Patel CEO of Mudrex

"The RBI's choice to keep the repo rate at 6.5% showcases a strategic position amidst strong domestic economic momentum. By ensuring rate stability, the central bank intends to support continuous growth, creating a conducive environment for businesses and investments. The forecast of a 7% GDP growth for FY25 indicates confidence in the economy's resilience. This decision aligns with a measured strategy, promoting economic expansion and managing potential inflationary pressures. It highlights the RBI's commitment to managing the changing economic conditions wisely."

Feb 08, 2024, 11:43 am IST

RBI MPC Reaction: Apurva Sheth, Head of Market Perspectives and Research, SAMCO Securities

"The RBI kept its interest rates unchanged at 6.5% in the recently announced monetary policy. This is the sixth consecutive time that the interest rates has remained unchanged and the longest pause in rates since 2008 in a rising interest rate environment. The RBI policy is more of a non-event as nothing new was mentioned in it. India 10 Year Bond yields spiked from the lows of 7.04% to 7.09% as the governor kept on emphasizing that RBI will watch out for inflation to cool off below 4% for them to be comfortable with rate cuts. We believe that since our economic growth is stable and US Fed too is in no mood to cut rates soon one can expect RBI to maintain its hawkish stance in H1CY2024."

Feb 08, 2024, 11:42 am IST

RBI MPC Reaction: Mukesh Kochar, National Head of Wealth at AUM Capital

"The MPC outcome is on expected lines only. RBI will continue to focus on aligning inflation towards its target of 4% which is expected to be attained by the June-August quarter. Inflation expectations for Q4 and Q1 have also been reduced. So the market may discount a rate cut possibility during the end of the 2nd quarter or 3rd quarter. The tight liquidity in the banking system may continue for some more time as the focus is on bringing down inflation towards 4%. Increased public debt globally has been cited as a concern and which is very important."

Feb 08, 2024, 11:41 am IST

RBI MPC Reaction: Ramani Sastri, Chairman and MD, Sterling Developers

"The long-term benefits of owning a home have led to sustainable growth in the segment and we see this up-cycle continuing in 2024. Hence, the pause in policy rate augurs well for the residential real estate sector. Consumers are keen to buy homes as stability and security is on top of their mind now and the recent past has been testament to the fact that home buyer confidence is at an all-time high. An increase in earning potential, end user-driven demand, a need for a better standard of living and the growing base of aspirational consumers and their lifestyle changes has led to substantial demand and growth in the sector. With economic growth, the premium housing segment too will continue to witness higher demand in the future. Real estate investments hence remain one of the most desired investments due to their strong base and reliability factor. 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. As long as the macro fundamentals are stable, demand for real estate will continue to grow. Going forward, there can be further uptick in demand with reduction in rates, making it even more enticing for prospective homebuyers and bolster overall market confidence."

Feb 08, 2024, 11:21 am IST

RBI MPC Reaction: Aman Gupta, Director, RPS Group

"The MPC's accommodative stance by holding the repo rate at 6.5% reiterates its focus on nursing economic growth amidst global headwinds. With inflation showing a controlled glide path over 2023, preserving momentum seems prudent before conclusively taming price-rise pressures. For real estate, the breather from further rate hikes provides temporary respite as home loan rates remain elevated post the cumulative 250 basis points rise last year. As we progress through 2023, the transmission of these cumulative hikes to bank lending rates will accrue more meaningfully, thereby impacting mortgage serviceability and affordability."

Feb 08, 2024, 11:21 am IST

RBI MPC Reaction: Anurag Goel, Director, Goel Ganga Developments

"An unchanged repo rate is a delight for buyers since it gives them another chance to buy real estate at the greatest pricing. In February 2023, the MPC last increased this rate by 25 basis points, to 6.50%. According to recent data, consumers are doing reasonably well in the housing market, which is consistent with the strong status of the economy. As we approach the new quarter of the season, home sales are trending strongly; the RBI's decision to maintain current interest rates will be critical in propelling the growth of the residential sector. The Repo Rate, which is the interest rate at which the RBI lends money, is an essential tool of monetary policy that the RBI utilises to control inflation and growth. For example, when the repo rates increase, banks have to pay more for RBI borrowings."

Feb 08, 2024, 11:21 am IST

RBI MPC Reaction: Gurmit Singh Arora, National President, Indian Plumbing Association

"As the RBI continues its accommodative stance by holding rates, it provides interim relief to industries facing cost pressures from cumulative hikes over 2022. The breather allows participants across real estate, infrastructure and allied ecosystems to assess the lag effect of past tightening measures before next steps. For plumbing and sanitary ware, volatile material costs from global supply chain disruptions had already squeezed margins. As borrowing rates ease a bit, players can focus more on streamlining operations and driving efficiency instead of price escalations alone. Dewatering, pipe producers and pump manufacturers also get fiscal latitude to stabilize inventory cycles."

Feb 08, 2024, 11:03 am IST

RBI MPC Reaction: LC Mittal, Director, Motia Group

"The MPC's decision to hold rates at 6.5% for the sixth consecutive time reinforces RBI's focus on supporting durable growth even amidst external risks from geopolitical conflicts or monetary policy tightening globally. While inflation persists above the target band, its gradual glide path downwards has provided the room to extend the policy rate pause and monitor the lag effect of cumulative hikes this year. For India's real estate sector, this status quo comes as a relief, even if temporary, after facing headwinds from rising home loan costs through 2022. Developers will also welcome the breather after material and financing costs escalated equipment and project costs. The outlook seems encouraging for broader economy, with inflation set to cool off further, a growth-focused Union Budget 2023, and resilience across macroeconomic parameters."

Feb 08, 2024, 11:02 am IST

RBI MPC Reaction: Ravi Singhal, CEO, GCL Broking

"Priced in rates are constant. The GDP growth prediction climbed from 7 to 7.2, but the inflation outlook decreased from 5.3 to 5. In FY 24, this will support the market's increasing trend in subsequent quarters. Additionally, the GDP growth rate is expected to reach 7.5% in FY 25. While inflation is down to 4.5%. Not a rise in liquidity. The process charges statement for Bank Nifty is negative."

Feb 08, 2024, 11:01 am IST

RBI MPC Reaction: Anuj Puri, Chairman – ANAROCK Group

"With the fundamentals of the Indian economy remaining strong despite all global headwinds and inflation well under control, the RBI once again decided to keep the repo rates unchanged at 6.5%, thus extending the festive bonanza that it gave to the homebuyers in its last two policy announcements. Thus, homebuyers retain their advantage of relatively affordable home loan interest rates. If we consider the present trends, the housing market has been unstoppable, and unchanged home loan rates will help maintain the overall positive consumer sentiments. Given that housing prices have risen across the top 7 cities in the last one year, this breather by the RBI is a distinct advantage to homebuyers."

Feb 08, 2024, 10:45 am IST

Rupee declines 0.53 Paise against US Dollar Monetary Policy Committee announces status quo

Indian Rupee witnessed a dip of fall of 0.53 paise as Monetary Policy Committee announces status quo with repo rate being unchanged at 6.5% for 5th straight policy.

Feb 08, 2024, 10:41 am IST

RBI Governor Says

SMS-based OTP has become very popular as AFA (additional factor of authentication) and therefore to enhance security of digital payments, the MPC has proposed to put in place a principle based framework for authentication.

Feb 08, 2024, 10:40 am IST

RBI Governor Says

RBI MPC has decided to allow resident entities to hedge price of gold in OTC segment in IFSC.

Feb 08, 2024, 10:39 am IST

RBI Governor Says

We propose to streamline the process of onboarding of Aadhaar Enabled Payment System (AePS) service providers and introduce additional fraud risk management measures.

Feb 08, 2024, 10:38 am IST

RBI Governor Says

To enhance transparency, the requirement of a Key Fact Statement is being extended to cover all retail and MSME loans. Banks will get some time to comply with this action.

Feb 08, 2024, 10:38 am IST

RBI Governor Says

It has been decided to also allow resident entities to hedge the price of gold in the OTC segment in IFSC.

Feb 08, 2024, 10:37 am IST

RBI Governor Says

India’s foreign exchange reserves stood at 2.5 billion as of February 2, 2024.

Feb 08, 2024, 10:37 am IST

RBI Governor Says

Current account deficits in FY24 and FY25 are expected to be eminently manageable.

Feb 08, 2024, 10:36 am IST

RBI Governor Says

RBI is looking to review the regulatory framework for electronic trading platforms which was last updated in 2018. The revised norms will be shared with stakeholders for feedback.

Feb 08, 2024, 10:35 am IST

Governor

The Indian rupee has remained stable compared to both EM peers and those from advanced economies. The relative stability of the rupee in the recent period reflects the strength and stability of the Indian economy, sound policies, and financial stability.

Feb 08, 2024, 10:30 am IST

RBI Governor Says

The CPI inflation target is yet to be reached. Amid lingering uncertainties, monetary policy has to remain vigilant and the last mile of disinflation navigated.

Feb 08, 2024, 10:29 am IST

RBI Governor Says

FY25 CPI Inflation projected at 4.5% -January-March 2024 CPI inflation forecast lowered to 5.0% from 5.2%. -April-June 2024 CPI inflation forecast lowered to 5.0% from 5.2%. -July-September 2024 CPI inflation forecast retained at 4.0%. -October-December 2024 CPI inflation forecast lowered to 4.6% from 4.7%. -January-March 2025 CPI inflation forecast pegged at 4.7%.

Feb 08, 2024, 10:28 am IST

RBI Governor Says

FY25 GDP growth projected at 7% -April-June 2024 GDP growth forecast raised to 7.2% from 6.7%. -July-September 2024 GDP growth forecast raised to 6.8% from 6.5%. -October-December 2024 GDP growth forecast raised to 7.0% from 6.4%. -January-March 2025 GDP growth forecast pegged at 6.9%.

Feb 08, 2024, 10:24 am IST

RBI Monetary Policy Live Updates

RBI governor Shaktikanta Das

Feb 08, 2024, 10:22 am IST

RBI Monetary Policy Live Updates

RBI governor Shaktikanta Das

Feb 08, 2024, 10:21 am IST

RBI Governor Says

This is the 3rd successive year of growth above 7%, FY24 momentum is expected to continue in FY25.

Feb 08, 2024, 10:21 am IST

RBI Governor Says

Domestic agriculture activity is holding up well despite lower inflation and lower reservoir levels. Services sector activity is expected to remain resilient.

Feb 08, 2024, 10:19 am IST

RBI Governor Says

CPI inflation for FY25 is projected at 4.5%.

Feb 08, 2024, 10:18 am IST

RBI Governor Says

CPI inflation for FY23-24 is projected at 5.4%.

Feb 08, 2024, 10:17 am IST

RBI Governor Says

FY24-25 real GDP growth forecast is projected at 7%.

Feb 08, 2024, 10:16 am IST

RBI Governor Says

Global growth is expected to remain steady in 2024, trade momentum remains weak, but is exhibiting signs of recovery. Global public debt to GDP is projected to reach 100% by the end of this decade.

Feb 08, 2024, 10:15 am IST

RBI Governor Says

FY24 real GDP growth forecast raised to 7.3% from 7% earlier.

Feb 08, 2024, 10:14 am IST

RBI Monetary Policy Live Updates

RBI governor Shaktikanta Das

Feb 08, 2024, 10:13 am IST

RBI Monetary Policy Live Updates

RBI governor Shaktikanta Das

Feb 08, 2024, 10:12 am IST

RBI Governor Says

Ongoing wars and new flashpoints including the Red Sea crisis impart uncertainty to the global outlook.

Feb 08, 2024, 10:09 am IST

RBI Governor Says

RBI maintains MSF & Bank rates unchanged at 6.75% and SDF at 6.25%.

Feb 08, 2024, 10:07 am IST

RBI Governor Says

RBI maintains stance at the withdrawal of accommodation with 5:1 majority.

Feb 08, 2024, 10:06 am IST

RBI Governor Says

Monetary Policy Committee announces status quo with repo rate being unchanged at 6.5% for 6th consecutive time.

Feb 08, 2024, 10:05 am IST

RBI Governor Says

The odds of a soft landing have increased globally.

Feb 08, 2024, 10:05 am IST

RBI Governor Says

RBI stands for trust, stability and economic progress.

Feb 08, 2024, 10:03 am IST

RBI Governor Starts

RBI Governor begins monetary policy speech.

Feb 08, 2024, 9:36 am IST

Market Reaction Ahead Of Policy

Indian stock market traded higher in the opening bell of Thursday ahead of RBI's monetary policy outcomes. Benchmark Nifty crossed its psychological 22,000 mark to hit an intraday high of 22,011.05, while Sensex also surged by nearly 321 points to hit an intraday high of 72,473.42.

Feb 08, 2024, 9:35 am IST

Rate Cut Unlikely Today

Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Shares and Stock Brokers said: RBI was clear that repo cuts were out of the picture unless headline inflation comes down and sustainably remains at the 4% target. Hence, given the current CPI level, the possibility of a rate cut has been ruled out. On the other hand, we reckon the RBI would take a more proactive approach on the liquidity front given deeply negative liquidity in the interbank market. At the last meeting itself, Das mentioned going nimble on liquidity; given the worsening since, there is a considerable probability the RBI would change its stance to neutral. Having said that, any change in policy measures on reserve ratios would not be the base case, as the reason for the liquidity deficit is temporary and can be curbed using fine-tuning operations.

Feb 08, 2024, 9:35 am IST

Liquidity deficit, a concern

Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Shares and Stock Brokers said: Interbank liquidity has worsened since the Dec’23 MPC meet, causing concerns around pressurizing call rates hovering around the MSF as the government has withheld spending (visible from its huge cash balances) along with more currency in circulation, record tax collections and faster credit offtake than deposit accretion. One on hand while this accelerates the transmission of rate hikes, the mandate for RBI is to keep its operating target (the weighted average call rates) near the repo rate not MSF.

Feb 08, 2024, 9:32 am IST

When will the RBI pivot on rates?

Emkay's research revealed, We have long maintained that the RBI's policy has been somewhat pegged to the Fed, specifically in the last two years, even as it formally targeted inflation. The swift turn of tone and action pivots of the RBI in the last two years have been influenced purely by global causes [recall a few key hawkish pivots]. Amid fluid external dynamics, the policy prerogative has essentially been to ensure financial stability, even as the policy narrative has been domestic - implying the aim of financial stability may have even preceded inflation management in the last two years.

Feb 08, 2024, 9:31 am IST

Can RBI Precede the Fed?

Emkay's note said, markets are assigning ~60% probability of the first Fed cut by May-24 (CY-24, 117bps cut) [Ex. 2]; and domestically, policy normalization is seen by Feb-24, with one cut each in Jun-24 and Oct-24. We think factors such as: 1) US inflation trends taking time to discern, 2) economic resilience, and 3) easier financial conditions feeding back into demand may be slowing any early move towards massive key DM central bank easing this year. This should restrain the RBI from cutting early as well. As of now, we see the Fed not cutting before Jun-24, with the RBI following suit with a lag. We maintain that the RBI will not precede the Fed in any policy reversal in CY24.

Feb 08, 2024, 9:31 am IST

Policy Outcomes Expectations

As per Emkay Global: There is not much excitement in the markets, ahead of the upcoming MPC meet. Most are expecting it to be a non-event, with traces of dovishness - similar to Dec-23. However, some key market-moving concerns continue to linger. From the policy point, we see the RBI striking a dovish tone in the upcoming policy, post a healthy budget and largely comfortable global narrative, but it will fall short of any stance change (a close call). No material change in the assessment of macro variables is expected.

Feb 08, 2024, 8:21 am IST

RBI To Maintain Policy Rates?

Shishir Baijal, Chairman and Managing Director, Knight Frank India: In the upcoming MPC meeting, we expect that the RBI will continue to maintain the policy repo rates. Consumer inflation, excluding food prices, is within the central bank's acceptable upper tolerance range and the fiscal consolidation plan outlined in the FY2024-25 budget, aiming to gradually reduce the fiscal deficit to 4.5% over the next two years, provides a buffer against potential inflationary pressures. This eases the RBI's stance on considering any interest rate hikes for the remainder of the year. With the economic momentum holding steady, the RBI can consider maintaining the rates for now and remain open to pivot to rate cut as circumstances evolve later this year. Maintaining stability in interest rates is proving beneficial for the real estate market, particularly the residential sector. Consumers have already factored in elevated interest rates and are still actively engaging in home purchases. However, the affordable housing segment is experiencing sluggish residential sales. Consequently, a well-timed rate cut could prove advantageous for this specific market segment, providing a potential boost to affordability and create a runway for future growth.

Feb 08, 2024, 7:33 am IST

RBI Latest GDP Outlook

In December policy, RBI said, continued strengthening of manufacturing activity, buoyancy in construction, and gradual recovery in the rural sector are expected to brighten the prospects of household consumption. Healthy balance sheets of banks and corporates, supply chain normalisation, improving business optimism, and rise in public and private capex should bolster investment going forward. With improvement in exports, the drag from external demand is expected to moderate. Headwinds from the geopolitical turmoil, volatility in international financial markets and geoeconomic fragmentation pose risks to the outlook. Taking all these factors into consideration, real GDP growth for 2023-24 is projected at 7.0 per cent with Q3 at 6.5 per cent; and Q4 at 6.0 per cent. Real GDP growth for Q1:2024-25 is projected at 6.7 per cent; Q2 at 6.5 per cent; and Q3 at 6.4 per cent.

Feb 08, 2024, 7:33 am IST

RBI Latest Inflation Target

RBI in December policy said, " Kharif harvest arrivals and progress in rabi sowing together with El Niño weather conditions need to be monitored. Adequate buffer stocks for cereals and a sharp moderation in international food prices, along with pro-active supply side interventions by the Government may keep these food price pressures under check. Crude oil prices may remain volatile. Early results from the firms polled in the Reserve Bank’s enterprise surveys indicate softer growth in input costs and selling prices for the manufacturing firms in Q4 relative to the previous quarter, while price pressures persist for services and infrastructure firms. Taking into account these factors, CPI inflation is projected at 5.4 per cent for 2023-24, with Q3 at 5.6 per cent; and Q4 at 5.2 per cent. Assuming a normal monsoon next year, CPI inflation for Q1:2024-25 is projected at 5.2 per cent; Q2 at 4.0 per cent; and Q3 at 4.7 per cent."

Feb 08, 2024, 7:33 am IST

RBI Medium Term Inflation Target

RBI is an inflation trajectory central bank, and its policy outcomes revolve around CPI. These 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.

Feb 08, 2024, 7:32 am IST

RBI Monetary Policy Stance

MPC currently has continued to be focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.

Feb 08, 2024, 7:07 am IST

Key Policy Rates

1. Policy Repo Rate under the liquidity adjustment facility (LAF) at 6.50%. 2. Standing deposit facility (SDF) rate remains at 6.25%. 3. Marginal standing facility (MSF) rate and the Bank Rate at 6.75%.