RBI MPC Meeting LIVE Updates: Governor Das To Announce Policy Decision Shortly – News18

RBI Monetary Policy Meeting Live: Total cut of 100 basis points in the repo rate by December 2025?

RBI Monetary Policy Meeting Live Updates: Bank of America anticipates that the Reserve Bank of India (RBI) will have the opportunity to reduce interest rates in the upcoming months, driven by decelerating growth and decreasing inflation. They forecast a total cut of 100 basis points in the repo rate by December 2025, with the initial reduction expected to occur in December 2024.

RBI Monetary Policy Meeting Live: Fiscal deficit in 5 months hits 27% of FY25 target

RBI MPC Meeting Live Updates: The Centre’s fiscal deficit for the first five months of 2024-25 was recorded at 27% of the annual target, down from 36% during the same period last year, according to official data.

RBI MPC Meet Live: What Shaktikanta Das said in the last policy review

Continuing food price shocks slowed the process of disinflation in Q1:2024-25. There is also considerable divergence between headline and core inflation. This has brought to the fore the issue of how much importance should the MPC give to food inflation. Let me dwell upon this in some detail.

First and foremost is the fact that our target is the headline inflation wherein food inflation has a weight of about 46 per cent. With this high share of food in the consumption basket, food inflation pressures cannot be ignored. Further, the public at large understands inflation more in terms of food inflation than the other components of headline inflation. Therefore, we cannot and should not become complacent merely because core inflation has fallen considerably.

Second and equally important is the reality that high food inflation adversely affects household inflation expectations, which have a significant impact on future trajectory of inflation. Household inflation expectations, after witnessing a moderating trend between May 2022 and September 2023, have edged up on the back of high food inflation since November 2023. Persistently high food inflation and unanchored inflation expectations – if they materialise – could lead to spillovers to core inflation through pick-up in wages on cost-of-living considerations. This, in turn, could be passed on by firms in the form of higher prices for services as well as goods, especially in a scenario of strong aggregate demand. Third, these behavioural changes can then result in overall inflation becoming sticky, even after food inflation recedes.

The MPC may look through high food inflation if it is transitory; but in an environment of persisting high food inflation, as we are experiencing now, the MPC cannot afford to do so. It has to remain vigilant to prevent spillovers or second round effects from persistent food inflation and preserve the gains made so far in monetary policy credibility.

RBI Monetary Policy Meeting Live: Cost of veg thali increased 11% in Sept

RBI MPC Meeting Live Updates: According to Crisil, the cost of home-cooked vegetarian thalis rose by 11% year-on-year in September, while the price of non-vegetarian thalis fell by 2%. This increase in the cost of vegetarian thalis was primarily driven by a surge in vegetable prices, with onions, potatoes, and tomatoes seeing year-on-year price hikes of 53%, 50%, and 18%, respectively.

RBI MPC Meet Live: BSE Sensex opens over 200 points up; Nifty50 above 25,050

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, opened in green on Wednesday ahead of RBI’s monetary policy review meeting. While BSE Sensex was above 81,800, Nifty50 crosses 25,050. At 9:16 AM, BSE Sensex was trading at 81,843.35, up 209 points or 0.26%. Nifty50 was at 25,060.00, up 47 points or 0.19%.

RBI MPC Live Updates: Real Estate Sector Hopes

The real estate sector has witnessed robust growth in recent years in the context of continuous demand. The repo rate plays a crucial role in determining home loan interest rates and hence, in this context, a 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.

RBI MPC Live Updates: RBI Governor’s Press Conference

After the policy announcement, the RBI governor will also address a press conference at 12:00 noon on Wednesday. The press conference can be watched here.

RBI MPC Live Updates: When & How To Watch Shaktikanta Das Address LIVE

Headed by RBI Governor Shaktikanta Das, the six-member Monetary Policy Committee (MPC) is meeting for three days and the decision would be announced at 10 am on Wednesday, October 9. Read More

RBI MPC Live Updates: Expect status quo today, 50 bps rate cut in upcoming policies this fiscal year: CareEdge

RBI MPC Live Updates: RBI MPC will be cautious regarding the evolving risks to food inflation. As far as economic growth is concerned, while high-frequency indicators suggest some softening of the economic momentum, overall growth continues to remain healthy. A revival of the private consumption demand along with early signs of a pickup in private investment bodes well for the overall economy. The RBI will also find comfort from the fact that growth in unsecured lending has slowed, said CareEdge.

We believe that RBI is likely to maintain a status quo on policy interest rates and stance today. However, if food inflation moderates, we could see a shallow rate cut of 50 bps in the upcoming policy meetings in this fiscal year, it added.

RBI MPC Meet Live: Shift towards a more accommodative stance?

Regarding expectations from the MPC, Radhika Rao, Executive Director and Senior Economist at DBS Bank, mentioned that the central bank’s commitment to tackling food price inflation and maintaining anchored inflation expectations will likely lead MPC members to favor a pause in October. She also suggested that there may be a shift toward a more accommodative stance in the December rate review.

RBI MPC Meet Live: 6.5 per cent repo rate since Feb 2023

RBI MPC Meet Live: Global interest rate scenario more favourable for RBI

In August and September, the Indian banking system experienced a substantial daily average surplus liquidity, with figures reaching Rs 1.5 lakh crore and Rs 1.29 lakh crore, respectively. These calculations exclude seven days in September when the system faced a deficit. The month of July also witnessed a significant average surplus of Rs 1.34 lakh crore, as revealed by an examination of data from the central bank.

The global interest rate environment has recently become more conducive for the Reserve Bank of India (RBI), following a 50 basis point rate reduction by the US Federal Reserve last month. This move was accompanied by similar rate cuts implemented by the Bank of England and the European Central Bank in recent months.

Although the RBI has emphasized that domestic inflation factors primarily influence its decisions, the rate cuts in advanced economies have resulted in a broader interest rate differential between India and these nations. “A wider interest rate differential plays an important role in the rupee exchange rate, with a shrinking gap typically leading to weakness in the local currency.”

RBI MPC Meet Live: Inflation to be sticky?

Madan Sabnavis, the chief economist at Bank of Baroda, believes that the current high inflation rates will continue for the upcoming months. He said, “I think we can all agree that high inflation has persisted and will remain there for the next few months.”

Given the ongoing war and persistent inflation, Sabnavis suggests that any changes in the interest rate and monetary policy stance would be premature at this point. However, he notes that the central bank’s forecasts on inflation will be of particular interest, especially whether they maintain their prediction of 4.5% inflation for the following year.

RBI MPC Meet Live: Where does inflation stand?

RBI MPC Meet Live: Despite a recent decline in headline retail inflation, with the August CPI reading at 3.65%, economists believe that an anticipated increase in the price gauge for September will hinder the RBI from following the lead of central banks in certain advanced economies and lowering interest rates.

RBI MPC Meet Live: Middle East Tensions weigh

The Monetary Policy Committee (MPC) is also unlikely to reduce interest rates due to the recent surge in violence in West Asia, which has led to supply chain disruptions and increased risks to global commodity prices, in addition to the need to ensure a sustained decline in inflation. Over the past week, crude oil prices have risen by more than 5% as a result of the conflict in West Asia.

According to Reuters, Brent crude prices were up 5.03%, at $77.62 a barrel, amid concerns that the escalation could lead Iran to block the Strait of Hormuz, a crucial logistical choke point through which “a fifth of daily oil supply passes.”

The rise in crude oil prices is detrimental to India’s domestic trade and inflation, as the country heavily relies on imported oil. Consequently, the MPC is expected to maintain a cautious approach and refrain from lowering interest rates until the situation stabilizes and the inflation decline is sustained.

RBI MPC Meet Live: A look at internal members of MPC

RBI MPC Meet Live Updates: In addition to Governor Shaktikanta Das, the other internal members of the committee include Michael Debabrata Patra, the Deputy Governor responsible for monetary policy, and Rajiv Ranjan, the Executive Director of the RBI’s monetary policy department.

RBI MPC Meet Live: The new MPC members

RBI MPC Meet Live Updates: Earlier this month, the government restructured the Monetary Policy Committee (MPC) by appointing Ram Singh, Saugata Bhattacharya, and Nagesh Kumar as its new external members. They take over the roles previously held by Ashima Goyal, Shashanka Bhide, and Jayanth R. Varma.

RBI MPC Live Updates: RBI may keep repo rate unchanged, may alter policy stance

RBI MPC Live Updates: The RBI’s rate-setting panel is widely expected to keep the benchmark repo rate unchanged at 6.5% for the tenth straight meeting, with a view to balance inflation and economic growth. However, most economists estimate a change in policy stance of ‘withdrawal of accommodation’.

RBI MPC Meet Live: Inaugural session of the new policy committee

RBI MPC Meet Live Updates: This meeting marks the inaugural session of the new policy committee, which was established last week with the addition of three external members who are renowned economists with expertise in academia and finance.

RBI MPC Meet Live: Rate cut or no rate cut?

RBI MPC Meet Live Updates: In a Bloomberg survey of 35 economists, the majority anticipate that the Reserve Bank of India’s six-member Monetary Policy Committee will maintain the repurchase rate at 6.5%. However, some economists foresee a transition to a ‘neutral’ stance for the first time since June 2019, moving away from its existing hawkish position.