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 HIGHLIGHTS: RBI Governor Shaktikanta Das announced a status quo on the repo rate as well as the policy stance at the end of a bi-monthly review on August 8. Catch highlights 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:
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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.
RBI MPC August 2024 Review LIVE: Fintech an important part of financial system, says Chief Economic Advisor
Chief Economic Advisor V Anantha Nageswaran says that financial literacy has improved in the country.
Here are some other things he says:
- Fintech is an important part of financial system
- India emerging as a leading fintech ecosystem
- India has more than 7,000 fintech companies
RBI MPC August 2024 Review LIVE: Food inflation, impact of base effect on inflation don't warrant a looser monetary policy, says CSB Bank CEO
The central bank has been looking at data and deciding on policy objectively, says CSB Bank MD and CEO Pralay Mondal.
"The food inflation and the impact of the base effect on inflation don't warrant a looser monetary policy. The reduction of reporting periodicity to CIC and continuous clearance of cheques are welcome steps. We believe that the RBI will continue to keep the system liquidity in surplus to ease pressure on bank deposits," says Mondal.
RBI MPC August 2024 Review LIVE: Global 'dangal' to continue, says Lakshmi Iyer
"The status quo on rates and the policy stance was in line with our expectations. The RBI does not seem to be under any duress to act just because of global developments. The markets are expected to be guided by the development on the global policy front, domestic inflation, and the progress of monsoon," says Lakshmi Iyer, CEO-Investments and Strategy at Kotak Alternate Asset Managers.
Iyer expects bond yields to continue to find anchor due to FPI buying. "We maintain our preference for government bonds over corporate bonds," she adds.
RBI MPC August 2024 Review LIVE: RBI continues to bat for patience as domestic inflation slowly but steadily trending towards 4% goal, says economist Anitha Rangan
Anitha Rangan, Economist at Equirus, points out that global volatility and geopolitics add to the challenges that are keeping the RBI on watch.
"The RBI cannot afford the slightest error of judgement – perhaps the action of BoJ has put RBI under a bigger guard. Another spanner around deposit challenges from banks also means the RBI is not in mood to cut rates in the near term. Stay patient, stay put, policy rates to remain steady for longer," says Rangan.
RBI MPC August 2024 Review LIVE: Q2 & Q3 consumer inflation projections revised
The MPC now projects retail inflation - or the rate of increase in consumer prices - at 4.4 per cent and 4.7 per cent in Q2 and Q3 respectively.
RBI MPC Meet August 2024 Review LIVE Update: High food inflation remains a concern
The RBI Governor-led MPC has maintained its full-year CPI projection at 4.5 per cent.
However, Governor Shaktikanta Das says that elevated food prices continue to be a concern.
RBI MPC Meet August 2024 Review LIVE Update: Take a look at quarterly GDP projections
Here's how the MPC has placed its quarterly GDP projections for the current financial year:
- Q1: 7.1% (instead of 7.3% earlier)
- Q2: 7.2%
- Q3: 7.3%
- Q4: 7.2%
RBI MPC Meet August 2024 Review LIVE Update: Q1 FY25 GDP growth projection revised to 7.1% from 7.3%
The MPC now pegs GDP growth at 7.1 per cent in the quarter ended June 30, 2024, instead of the 7.1 per cent earlier.
RBI MPC Meet August 2024 Review LIVE Update: RBI Governor mentions challenges related to global growth outlook over medium term
Shaktikanta Das says that although inflation seems to be easing globally, challenges persist regarding the medium-term world growth outlook.
RBI MPC Meet August 2024 Review LIVE Update: 4 MPC members in favour of switching to 'accommodative' policy stance
The RBI Governor says that four out of the six-member Monetary Policy Committee voted in favour of returning to the "accommodative" stance of policy.
RBI MPC Meet August 2024 Review LIVE Update: RBI Governor explains why policy has to be developed cautiously
"The slightest error of judgement, a hasty action or a hasty word may put back the hands of the clock of progress... Policies have therefore to be cautiously evolved," says the RBI Governor.
RBI MPC Meet August 2024 Review LIVE Update: Public repository to help in restricting illegal lending apps
RBI MPC Meet August 2024 Review LIVE Update: RBI to set up a public repository on digital lending apps
RBI MPC Meet August 2024 Policy LIVE Update: Commercial banks finding it difficult to boost deposits, says RBI Governor
Financial institutions should come up with new products to aid growth in deposits, says Shaktikanta Das.
RBI MPC Meet August 2024 Policy LIVE Update: Rupee has remained rangebound so far in FY25, says Shaktikanta Das
RBI MPC Meet August 2024 Policy LIVE Update: Rate-sensitive stocks remain a mixed bag as Shaktikanta Das reveals policy
RBI MPC Meet August 2024 Policy LIVE Update: FY25 consumer inflation projection maintained at 4.5%
RBI MPC Meet August 2024 Review LIVE: FY25 GDP growth forecast unchanged at 7.2%
RBI MPC Meet August 2024 Review LIVE: Good activity recorded in services sector, says Shaktikanta Das
RBI Governor Shaktikanta Das lauds the performance of the country's services sector.
RBI MPC Meet August 2024 Review LIVE: Good levels of kharif sowing recorded, says RBI Governor
RBI MPC Meet August 2024 Review LIVE: All decisions in view of economic situation, says RBI chief
RBI Governor Shaktikanta Das says that the decisions made by the MPC are in view of the economic situation in the country.
RBI MPC Meet August Review LIVE: Central bank remains cautious on consumer prices
The RBI Governor says that the central bank will continue to keep a close watch on the consumer inflation situation in the economy.
RBI MPC Meet August Review LIVE: MPC votes 4:2 to keep repo rate unchanged
RBI MPC Meet August Review LIVE: BREAKING - Policy stance unchanged
RBI Governor Shaktikanta Das announces no change in the policy stance.
RBI MPC Meet August Review LIVE: BREAKING - Repo rate unchanged at 6.5%
RBI Governor Shaktikanta Das announces no change in the key lending rate.
RBI MPC August 2024 Review LIVE: Can you expect a rate cut today?
None of the economists polled by Zee Business expects a reduction in today's review.
Seven out of every 10 economists expect a downward revision in the repo rate in December, and the remaining three in February.
RBI MPC Review August 2024 Live Updates: RBI policy decision imminent
RBI Governor Shaktikanta Das will be announcing the outcome of the bi-monthly review at 10 am.
RBI MPC August 2024 Review, Rate Decision LIVE Update: Welcome to Zeebiz.com's blog on the RBI's August 2024 policy review
Will the Reserve Bank of India (RBI) hold the repo rate, or the key interest rate at which it lends short-term funds to commercial banks, unchanged at 6.5 per cent in its August 2024 review?
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