RBI MPC Meet June 2024 HIGHLIGHTS: Shaktikanta Das-led MPC leaves repo rate, policy stance unchanged; FY25 GDP forecast raised by 20 bps
RBI MPC June 2024 Review, Rate Decision HIGHLIGHTS: The RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) decided to leave the repo rate as well as the policy stance unchanged at withdrawal of accommodation in its June 5-7 review. Catch all the latest update on the RBIs June 2024 review - the first after the announcement of the 2024 general election results - here on Zeebiz.coms blog.
RBI MPC June 2024 Review, Rate Decision HIGHLIGHTS: The RBI Governor Shaktikanta Das-led MPC voted 4:2 to maintain the repo rate as well as the policy stance unchanged in the June 5-7 review. The decision to keep the repo rate - the key interest rate at which the RBI lends short-term funds to commercial banks - as well as the policy stance - which determines its overall approach to monetary policy - was in line with economists' expectations.
The central bank's all-powerful interest rate-setting panel, the MPC, raised its forecast for GDP growth in the country by 20 basis points to 7.2 per cent while maintaining its projection for consumer inflation at 4.5 per cent for FY25. Read more on RBI GDP forecast
The bi-monthly policy review comes days after official data showed India's GDP grew at a faster-than-expected rate of 7.8 per cent in the January-March quarter, aided by expansion in its key manufacturing sector.
Catch latest stock market updates here
RBI Repo Rate Decision HIGHLIGHTS | Follow this space to catch all important details and updates about this event:
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That's all today!
RBI MPC June 2024 Review, Rate Decision LIVE Update: MPC has delivered a ‘fairly neutral policy' with a positive undertone, says Future Generali India Life Insurance's Niraj Kumar
The MPC has been upbeat on growth and nudged the GDP forecasts higher, while being cognizant and cautious of achieving the last mile of disinflation, says Niraj Kumar, Chief Investment Officer at Future Generali India Life Insurance Company.
"The bump up in growth numbers renders the key optimism in policy and provides the requisite comfort to equity markets. Given the backdrop of supportive fiscal position and the global bond index inclusion, we reckon monetary policy continues to be complementary and supportive to the bond markets. While MPC refrains from giving cues on further rate actions, the 4:2 voting pattern is indeed encouraging and indicative of a possible change in stance in the near future," Kumar adds.
RBI MPC June 2024 Review, Rate Decision LIVE Update: Policy stance was warranted given global, local factors, says CSB Bank's Alok Singh
Alok Singh, Group Head-Treasury at CSB Bank, points out that the status quo in the policy stance was warranted looking at the global and local factors.
"We expected some measures on Banking system liquidity but it seems RBI may be waiting to see the OMOs through before taking any other measure. The RBI has continued with its measures to improve digital payment space which augurs well for the future and would certainly help the RBI establish its global footprint," Singh adds.
RBI MPC June 2024 Review, Rate Decision LIVE Update: Inflation continues to moderate, mainly driven by core component, says Shaktikanta Das
While the deflation in fuel prices is ongoing, food inflation remains elevated, says the RBI Governor.
RBI MPC June 2024 Review, Rate Decision LIVE Update: Inflation-growth balance moving favourably, says RBI Governor
Growth is holding firm, says RBI Governor Shaktikanta Das.
RBI MPC Meet June 2024 LIVE Update: RBI in no hurry to reduce rates, says Saugata Bhattacharya
Senior economist Saugata Bhattacharya is of the view that a rate cut is unlikely before December.
The RBI appears to be in no rush to reduce rates, the economist tells Zee Business Managing Editor Anil Singhvi.
"Any central bank works on rate changes on a step-by-step basis... In the RBI's case, the dissent (MPC vote) is increasing from 5:1 to 4:2," adds Bhattacharya.
RBI MPC Meet June 2024 LIVE Update: Shaktikanta Das says central bank remains focused on striking balance between growth, inflation
RBI MPC June 2024 Review, Rate Decision LIVE Update: BREAKING - RBI remains focused on striking balance between growth, inflation, says Governor Shaktikanta Das
RBI MPC June 2024 Review, Rate Decision LIVE Update: BREAKING - MPC votes 4:2 to maintain policy stance
The RBI Governor says the central bank remains focused on withdrawal of accommodation.
RBI MPC June 2024 Review, Rate Decision LIVE Update: BREAKING - MPC votes 4:2 to maintain repo rate at existing level
The repo rate stands at 6.5 per cent currently.
RBI MPC June 2024 Review, Rate Decision LIVE Update: BREAKING - Small loan interest rates much higher, says Shaktikanta Das
The RBI Governor says that the interest of borrowers is paramount for the central bank.
RBI MPC June 2024 Review, Rate Decision LIVE Update: BREAKING - FY25 to see better stability in rupee vs dollar, says RBI Governor
RBI MPC June 2024 Review, Rate Decision LIVE Update: BREAKING - RBI maintains FY25 consumer inflation forecast at 4.5% citing evenly balanced risks
Quarter-wise projections
- Q1: 4.9%
- Q2 at 3.8%
- Q3 at 4.6%
- Q4 at 4.5%
RBI MPC June 2024 Review, Rate Decision LIVE Update: BREAKING - RBI revises FY25 GDP growth projection to 7.2% from 7.0% citing evenly balanced risks
Quarter-wise projections
- Q1: 7.3%
- Q2 at 7.2%
- Q3 at 7.3%
- Q4 at 7.2%
RBI MPC June 2024 Review, Rate Decision LIVE Update: BREAKING - RBI leaves policy stance unchanged
The central bank remains focused on "withdrawal of accommodation".
RBI MPC June 2024 Review, Rate Decision LIVE Update: BREAKING - RBI leaves repo rate unchanged
The MPC votes 4:2 to maintain the key lending rate at the existing 6.5 per cent.
RBI MPC June 2024 Review, Rate Decision LIVE Update: Important levels to track in Nifty50, Nifty Bank today as Dalal Street awaits RBI meeting outcome
Zee Business Managing Editor Anil Singhvi expects support for the headline Nifty50 index to emerge at 22,700-22,800 levels and a strong buy zone at 22,525-22,675 levels on Friday, June 7.
Read more on how Anil Singhvi views Dalal Street today and what he suggests
RBI MPC June 2024 Review, Rate Decision LIVE Update: Share Market Update - Here's how interest rate-sensitive stocks fare 30 minutes ahead of the RBI press conference
What are rate-sensitive stocks?
Also known as interest-rate sensitive stocks, these are stocks of companies whose performance and profitability are directly influenced by changes in interest rates.
These companies typically operate in sectors that are sensitive to changes in borrowing costs, such as banks, financial institutions, real estate companies, and certain sectors of consumer goods and services.
Financial services
Track latest updates on rate-sensitive stocks RBI MPC June 2024 Review, Rate Decision LIVE Update: Share Market Update - Sensex drops over 100 pts in early trade, Nifty slips below 22,800
The Sensex declines as much as 132.6 points, or 0.2 per cent, to 74,941.9 in early deals while the Nifty50 descends to as low as 22,789.1, down 32.4 points, or 0.1 per cent, from its previous close.
Catch all the latest stock market updates here
RBI MPC June 2024 Review, Rate Decision LIVE Update: GIFT Nifty indicates a mildly positive start on Dalal Street today
GIFT Nifty futures, an early indicator of the headline Nifty50 index, is up 24 points, or 0.1 per cent, at 22,915 at this hour.
Catch latest stock market updates here
RBI MPC June 2024 Review, Rate Decision LIVE Update: What is MSF?
Marginal standing facility (MSF)
The Marginal Standing Facility is a facility provided by the RBI to scheduled commercial banks to meet their liquidity needs during emergency situations. It serves as a last resort borrowing window for banks when they are unable to meet their liquidity requirements through other means.
The MSF rate provides a mechanism for banks to access emergency liquidity from the central bank usually at a rate higher than the repo rate.
It serves as an important tool for maintaining financial stability and ensuring the smooth functioning of the banking system during periods of stress or uncertainty.
RBI MPC June 2024 Review, Rate Decision LIVE Update: What is SDF?
Standing Deposit Facility (SDF)
The Standing Deposit Facility (SDF) is a tool used by central banks to manage the overnight liquidity of commercial banks within the banking system. The SFD rate is a rate at which commercial banks can park excess funds overnight with the central bank in a risk-free manner.Through the SDF rate, central banks provide a risk-free avenue for banks to earn interest on excess reserves and influence short-term interest rates in the interbank market.The SDF rate provides a mechanism for commercial banks to earn interest on their excess reserves held with the central bank.RBI MPC June 2024 Review, Rate Decision LIVE Update: Take a look at the current policy rates
- Repo rate: 6.50%
- Standing Deposit Facility (SDF) rate: 6.25%
- Marginal standing facility (MSF) rate: 6.75%
- Bank rate: 6.75%
- Fixed reverse repo rate: 3.35%
RBI MPC June 2024 Review, Rate Decision LIVE Update: Can there be a change in cash reserve ratio today?
What is the cash reserve ratio (CRR)?
CRR is a monetary policy tool used by central banks, such as the RBI, to control the money supply in the economy. It refers to the percentage of a bank's total deposits that it must keep in reserve with the central bank in the form of cash.
What to expect today?
None of the economists expects a change in the cash reserve ratio in the June review, according to the Zee Business poll.
RBI MPC June 2024 Review, Rate Decision LIVE Update: RBI mentioned 'policy space to unwaveringly focus on price stability' in April review
Here's what the RBI wrote:
"The strong growth momentum, together with our GDP projections for 2024-25, give us the policy space to unwaveringly focus on price stability."
The RBI tracks consumer inflation data primarily while formulating its monetary policy.
In the depths of the pandemic, the RBI prioritised economic growth over consumer inflation, a move it reversed afterwards.
RBI MPC June 2024 Review, Rate Decision LIVE Update: What is RBI's inflation forecast?
Currently, the RBI has pegged consumer inflation at 4.5 per cent in FY25 citing "evenly balanced" risks.
It projects CPI at:
- 4.9 per cent in Q1
- 3.8 per cent in Q2
- 4.6 per cent in Q3
- 4.5 per cent in Q4
RBI MPC June 2024 Review, Rate Decision LIVE Update: Where is RBI's current GDP forecast placed?
Currently, the RBI estimates GDP expansion to average at 7.0 per cent in 2024-25 citing "evenly balanced" risks.
It projects GDP growth at:
- 7.1 per cent in Q1
- 6.9 per cent in Q2
- 7.0 per cent in Q3
- 7.0 per cent in Q4
RBI MPC June 2024 Review, Rate Decision LIVE Update: Will RBI tweak inflation projections today?
According to the Zee Business poll, 80 per cent of the economists expect no change in the central bank's inflation projections today.
RBI MPC June 2024 Review, Rate Decision LIVE Update: Will RBI tweak GDP projections today?
It's a 50-50. Economists are divided on whether the RBI will tweak its GDP projections in the June 5-7 review.
RBI MPC June 2024 Review, Rate Decision LIVE Update: How many repo rate cuts can you expect this year?
While 70 per cent of the economists polled by Zee Business expect one rate cut this calendar year, 20 per cent expect two, and the remaining 10 per cent expect none.
RBI MPC June 2024 Review, Rate Decision LIVE Update: How a repo rate revision impact your home loan EMI
With the Reserve Bank of India (RBI) all set to unveil the MPC's decision on the repo rate as well as the policy stance, many may be wondering whether this event will also bring a change in their loan EMI amounts.
Lenders change home loan interest rates when the RBI changes the repo rate. Since February 2023, the RBI has kept the repo rate unchanged at 6.5 per cent.
Let's decode the relation between the RBI's repo rate and loan interest rates.
RBI MPC June 2024 Review, Rate Decision LIVE Update: RBI Governor to address a customary post-review media interaction at 12 pm
Image: x.com/RBI
RBI MPC June 2024 Review, Rate Decision LIVE Update: When will the first cut be announced in the current cycle?
While six out of every 10 economists polled expect the first rate cut to be announced in the December policy, three expect it in October and one in 2025, according to Zee Business research.
RBI MPC June 2024 Review, Rate Decision LIVE Update: What about policy stance? Can you expect a revision today? Here is what economists think
While all of the economists polled expect no change in the repo rate in today's statement, four-fifths of them expect no change in the policy stance as well, according to Zee Business research.
Currently, the MPC's policy stance stands at "withdrawal of accommodation".
RBI MPC June 2024 Review, Rate Decision LIVE Update: Can RBI cut the repo rate today?
Madhavi Arora, Lead Economist at Emkay Global Financial Services, expect no change in the repo rate as well as the policy stance in the June 5-7 review.
RBI MPC June 2024 Review, Rate Decision LIVE Update: What's the significance of repo rate changes? How essential a tool is it?
Picture the repo rate as the puppet master in the grand economic show. The strings it pulls control the borrowing expenses of banks from the central bank, directly influencing areas like lending rates, inflation, and the economy's overall growth.
Shifts in the repo rate undoubtedly affect borrowers and investors. When the repo rate drops, borrowing becomes cheaper, prompting more spending and investments, thus awakening the economy.
But, when it rises, the borrowing costs climb up, making consumers more cautious about their spending and investments.
Repo rate adjustments allow central banks to tame the beast that is inflation.
A decrease in this rate can spike demand and possibly heat up inflationary pressures. However, advancing the rate acts as the chill pill, helping to rein in inflation.
Further, these changes in the repo rate cause quite a ripple in the market pond, influencing areas like stock prices, bond yields, and currency values.
Central banks, thus, carefully study economic signs and trends before making their move on the repo rate chessboard, aiming to keep the economy balanced and accomplish policy goals.
RBI MPC June 2024 Review, Rate Decision LIVE Update: How does the repo rate impact you?
Changes in the repo rate affect interest rates in the economy, which in turn influence investment, consumption, and inflation.
A decrease in the repo rate can stimulate economic activity by lowering borrowing costs, while an increase can help control inflation by making borrowing more expensive.
Changes in the reverse repo rate affect the liquidity in the banking system.
Increasing the reverse repo rate can help control inflation by reducing the money supply, while decreasing it can provide liquidity to the banking system and stimulate economic activity.
ALSO READ: How repo rate determines your loan EMI
RBI MPC June 2024 Review, Rate Decision LIVE Update: Key differences between repo rate and reverse repo rate explained in detail
The repo rate influences the lending and borrowing activities of commercial banks.
When it is high, borrowing from the central bank becomes expensive, which may lead to a decrease in borrowing by commercial banks, thus reducing the money supply. Conversely, when it is low, borrowing becomes cheaper, encouraging banks to borrow more and increase the money supply.
The reverse repo rate is used by the RBI to absorb liquidity from the banking system.
When the reverse repo rate is high, commercial banks find it more attractive to lend money to the central bank, reducing the liquidity in the system. On the other hand, when the reverse repo rate is low, banks prefer to lend in the interbank market rather than parking funds with the central bank.
RBI MPC June 2024 Review, Rate Decision LIVE Update: Repo rate vs reverse repo rate - What are the key differences between the two?
While the repo rate is the rate at which the RBI lends money to commercial banks in case of need, the reverse repo rate is the rate at which it borrows money from commercial banks.
Commercial banks pledge government securities as collateral and borrow money from the central bank at the repo rate.
In a reverse repo transaction, a central bank sells securities to commercial banks with an agreement to buy them back at a future date at a predetermined price.
RBI MPC June 2024 Review, Rate Decision LIVE Update: What is the repo rate?
The repo rate - or the repurchase rate - is the key interest rate at which the RBI lends short-term funds to commercial banks.
The repo rate represents the interest rate set by the RBI for lending money to commercial banks over short-term periods, usually overnight.
This tool is employed by central banks to manage the money supply and influence monetary policy.
Adjustments to the benchmark rate allow a central bank such as the RBI to impact the interest rates at which banks borrow, subsequently affecting lending and spending across the broader economy.
When the repo rate is lowered, borrowing costs for banks decrease, incentivising them to extend more loans to consumers and businesses, thereby fostering economic activity.
Conversely, raising the repo rate elevates borrowing expenses, which can help mitigate an overheated economy or rein in inflation.
RBI MPC June 2024 Review, Rate Decision LIVE Update: Can you expect a repo rate cut today?
According to economists polled by Zee Business, the RBI is expected to keep the repo rate unchanged at 6.5 per cent today.
The central bank has maintained the key lending rate at this level since February last year.
RBI MPC June 2024 Review, Rate Decision LIVE Update: When is the RBI rate decision due?
The RBI governor is scheduled to announce the key takeaways from the June review in a press conference scheduled at 10 am.
RBI MPC June 2024 Review, Rate Decision LIVE Update: Can you expect RBI Governor Shaktikanta Das to announce a rate cut today?
The RBI's all-powerful MPC is all set to reveal its decision at 10 am today following a bi-monthly review that commernced on Wednesday, June 5.
The event comes days after official data showed the country's GDP expanded at a faster-than-expected 7.8 per cent in Q4, powered by growth in its key manufacturing sector.
RBI MPC June 2024 Review, Rate Decision LIVE Update: Welcome to Zeebiz.com's blog on the RBI's June 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 June 2024 review?
The June 5-7 review - the first bi-monthly review by the RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) after the declaration of the 2024 general elections, and the second this financial year, comes days after official data showed India's economy expanded at a faster-than-expected rate of 7.8 per cent in the January-March (Q4 FY24) quarter, aided by growth in its key manufacturing sector.
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