RBI MPC Meet August 2024 HIGHLIGHTS: No change in repo rate, policy stance; full-year GDP, inflation forecasts intact
RBI MPC August 2024 Review, Rate Decision Live Updates: RBI Governor Shaktikanta Das announced no change in the repo rate - or the key interest rate at which the central bank lenders money to commercial banks - as well as the policy stance on Thursday, August 8. The RBI Governor said the MPC voted 4:2 in favour of keeping the key lending rate unchanged. The MPC maintained its growth and inflation projections for the current fiscal year citing expectations of a normal monsoon. Currently, the RBI Governor-chaired panel projects GDP growth at 7.2 per cent and retail inflation at 4.5 per cent for FY25.
Improved agricultural activity brightens the prospects of rural consumption while sustained buoyancy in services activity would support urban consumption, said the RBI Governor. Full text of RBI Governor's August 8 speech
Catch highlights of the RBI's August 8 policy statement here:
RBI MPC August 2024 Review, Rate Decision Live Updates: RBI Governor Shaktikanta Das announced no change in the repo rate - or the key interest rate at which the central bank lenders money to commercial banks - as well as the policy stance on Thursday, August 8. The RBI Governor said the MPC voted 4:2 in favour of keeping the key lending rate unchanged. The MPC maintained its growth and inflation projections for the current fiscal year citing expectations of a normal monsoon. Currently, the RBI Governor-chaired panel projects GDP growth at 7.2 per cent and retail inflation at 4.5 per cent for FY25.
Improved agricultural activity brightens the prospects of rural consumption while sustained buoyancy in services activity would support urban consumption, said the RBI Governor. Full text of RBI Governor's August 8 speech
Catch highlights of the RBI's August 8 policy statement here:
Latest Updates
RBI keeps repo rate unchanged; here's how economists and industry experts view the move
The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 6.5 per cent reflecting its cautious approach amid ongoing economic uncertainties. This is the ninth consecutive time the central bank has opted for stability in its monetary policy.
RBI to set up public repository of digital lending apps to check unauthorised players
The Reserve Bank on Thursday proposed to create a public repository of digital lending apps in a bid to address the problems arising from mushrooming unauthorised players in the segment. In another significant move, the central bank proposed to introduce a facility of "Delegated Payments" in UPI to enable an individual to allow another individual to make UPI transactions.
RBI August policy review: Loan-related stipulations such as LTV, risk weights not being adhered to by certain entities
On the sideline of the monetary policy announcement, the government while putting its focus on the growing loan segment cautioned that there has been a brisk rise at the pace of disbursal of home equity loans of top-up home loans as they are referred to in India.
RBI August Policy Review: Status quo maintained; 'withdrawal of accommodation' stance continued
The RBI in its bi-monthly policy outcome today maintained status quo keeping in view the larger macros and the financial conditions and in view of the overall outlook for the eighth straight time.
RBI sees a positive shift in FPI's flows in the domestic market, $9.7 billion from June till Aug 6th 2024
While announcing the monetary policy, RBI Governor Shaktikanta Das noted a positive shift in foreign portfolio investment (FPI) flows, with USD 9.7 billion net inflows in domestic markets from June 2024.
RBI MPC August Review LIVE: Pace of reduction expected to be uneven due to repeated food shocks, says Tata Asset Management's Murthy Nagarajan
"The RBI Governor indicated a shift in focus from Core Inflation to headline inflation, and forecasted CPI inflation to come down at 4.5 per cent for FY25. The pace of reduction is expected to be uneven due to repeated food shocks," says Murthy Nagarajan, Head-Fixed Income at Tata Asset Management.
"The market is expected to trade on a bullish note with the Indian 10-year Government Securities trading in the band of 6.80 per cent to 6.90 per cent in the coming months," Nagarajan adds.
RBI MPC August 2024 Review LIVE: Minutes of meeting to be released on August 22
The minutes of the August review will be published on August 22, 2024, and the next bi-monthly review will take place during October 7-9, 2024.
RBI MPC August 2024 Review LIVE: Take a look at RBI's quarterly GDP growth projections
For the full year ending March 31, 2025, the RBI projects GDP growth at 7.2 per cent.
- Q1: 7.1%
- Q2: 7.2%
- Q3: 7.3%
- Q4: 7.2%
For the first quarter of FY26, the RBI projects GDP growth at 7.2 per cent citing "evenly balanced" risks.
RBI MPC August 2024 Review LIVE: Prices of vegetables, pulses, edible oils, cereals, milk, fruits, prepared meals led to worsening of headline inflation in June, says RBI
Headline inflation increased to 5.1 per cent in June 2024 after remaining steady at 4.8 per cent in the first two months of FY25, mentions the RBI.
RBI MPC August 2024 Review LIVE: After delayed start, cumulative southwest monsoon rainfall has picked up with improving spatial spread
Above-average rainfall has supported kharif sowing, with total area sown being 2.9 per cent higher than a year ago, as on August 2, according to the RBI.
RBI MPC August 2024 Review LIVE: IMD projection of above-normal monsoon, healthy kharif sowing to continue to aid rural demand, says RBI
RBI MPC Review LIVE: Economic activity continues to sustain momentum, says RBI Governor
"After a weak and delayed start, the cumulative southwest monsoon rainfall has picked up with improving spatial spread. By August 7, 2024, it was 7 per cent above the long period average," says the RBI Governor.
This has supported kharif sowing, he points out.
RBI MPC August Meet LIVE Update: Monetary policy expectations from Fed becoming less restrictive for emerging markets, says CRISIL economist
The European Central Bank (ECB) and the Bank of England (BOE) have already initiated rate cuts, but on the domestic front, "with a lower fiscal impulse and investment-focused spending, the budget was clearly non-inflationary", says Dharmakirti Joshi, Chief Economist, CRISIL.
However, that is not enough for the RBI to initiate rate cuts yet, as other domestic factors, particularly inflation, still dictate a cautious, wait-and-watch approach, says Joshi.