RBI Monetary Policy HIGHLIGHTS: Shaktikanta Das maintains status quo on interest rates, stance, says banks must communicate loan rate taking into account fees, charges
RBI Monetary Policy HIGHLIGHTS, RBI MPC Meet Feb 2024, Repo Rate: The RBI Governor Shaktikanta Das-led Monetary Policy Committee left the repo rate, or the key interest rate at which the central bank lends money to commercial banks, unchanged at 6.5 per cent on February 8. The status quo on monetary policy comes days after Finance Minister Nirmala Sitharaman unveiled the Interim Budget 2024 in Parliament on February 1, 2024. Catch all the highlights of the February 2024 RBI monetary policy review, expert views, market reaction, and much more here.
RBI Monetary Policy HIGHLIGHTS, RBI MPC Meet Feb 2024, Repo Rate: The Reserve Bank of India (RBI) Governor-led Monetary Policy Committee (MPC) kept 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 February 2024 review, in line with the expectations of most economists. RBI Governor Shaktikanta Das signalled that it may be a while before the central bank introduces interest rate cuts, after keeping them on hold for more than a year following six increases of a cumulative 250 basis points between May 2022 and February 2023, as it focuses on the "last mile of disinflation" towards its medium-term goal of 4.0 per cent and the economy stays resilient.
The MPC voted 5:1 to keep the repo rate on hold and also to keep the policy stance unchanged at "withdrawal of accommodation". A majority of interest rate-sensitive stocks, from spaces such as automobiles and real estate, took a beating, with the high-beta Nifty Bank index—whose 12 constituents include SBI, HDFC Bank and ICICI Bank—finishing the day 1.8 per cent weaker.
Monetary policy must continue to be actively disinflationary, the RBI chief said. Read the full text of the RBI chief's February 8 speech | Key things to know
Economists now see the central bank holding off on rate cuts at least till the second half of 2024.
Follow this space to catch all the highlights of the February 6-8 review of the RBI Governor-led MPC, including its projections on GDP growth and consumer inflation, expert views, market reaction, and much more:
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RBI MPC Meet Feb 2024 LIVE Update: RBI February 2024 policy complementary, says Future Generali India Life Insurance CIO
“The MPC has delivered a ‘complementary policy’ in the backdrop of a prudent fiscal budget and largely comfortable global narrative. The policy verdict continues to demonstrate its key focal point being policy stability and achieving the inflation target on a durable basis," says Niraj Kumar, Chief Investment Officer at Future Generali India Life Insurance Company.
"The MPC remains sanguine on growth and hence continues to remain vigilant in achieving its inflation target. From the liquidity standpoint as well, the MPC reiterates its tight liquidity stance to ensure a better transmission of prior rate hikes. Overall, the MPC continues to reprioritise the inflation target head-on and distinctly indicates rate change in the near term is unlikely, given that growth is likely to remain resilient and inflation though benign, would still be above the target," Kumar adds.
RBI MPC Meet Feb 2024 LIVE Update: MPC tone balanced, says ITI MF's Vikrant Mehta
“Today’s MPC decisions on the policy rate and the stance were on expected lines and we found the tone of the MPC to be balanced. The post-policy statement and comments from the central bank indicate that a meaningful softening of policy stance and/or policy rate is perhaps a couple of meetings away, but we draw comfort from the commentaries related to liquidity viz. the RBI’s objective to keep the overnight rate around the repo rate and the central bank’s commitment to remain nimble and flexible on liquidity management," says Vikrant Mehta, Head-Fixed Income at ITI Mutual Fund.
"We remain overweight on duration, particularly the long end,” Mehta adds.
RBI MPC Meet Feb 2024 LIVE Update: RBI rate decision along expected lines, says LIC Housing Finance's Tribhuwan Adhikari
"The rate-hike cycle pause coupled with the projected GDP growth for FY25 gives an outlook of positivity," says Tribhuwan Adhikari, MD and CEO, LIC Housing Finance.
"The effects of the government-led infrastructure initiatives are visible nationwide and impacting housing demand positively, particularly in Tier II and Tier III cities. The Budget announcements on PMAY are going to give further impetus to the affordable housing segment. They will definitely aid the home loan business for lenders," Adhikari adds.
RBI MPC Meet Feb 2024 LIVE Update: What happens to home, auto loans as RBI keeps repo rate unchanged
How does the repo rate impact home and auto loans?
The repo rate is the rate of interest at which the RBI lends its money to commercial banks. So when the RBI increases the repo rate, commercial banks pay more interest on the money borrowed from the central bank. They recover that money by increasing the interest rates applicable to loans home, auto and other loans.
Consequently, the borrower has to bear a higher EMI burden.
RBI MPC Meet Feb 2024 LIVE Update: RBI mandates lenders to issue Key Fact Statement including all fees and charges
In order to ensure enhanced transparency for borrowers, the RBI mandates lenders to provide them with the Key Fact Statement (KFS), a document containing essential information such as the all-inclusive annual percentage rate (APR), and the recovery and grievance redress mechanism.
Currently, KFS is specifically mandated in respect of loans by scheduled commercial banks to individual borrowers, digital lending by regulated entities (REs), and microfinance loans.
Read more here: Banks must communicate loan rates taking into account fees, charges
RBI MPC Meet Feb 2024 LIVE Update: RBI may introduce rate cuts only after Fed, says Ladderup Wealth Management's Raghvendra Nath
"The outcome of the three-day Monetary Policy Committee meeting aligns with our expectations. The cumulative effect of policy repo rate increases is still working its way through the economy through a gradual decline in inflation numbers, but geopolitical events and their impact on supply chains and commodity prices are key sources of upside risks to inflation," says Raghvendra Nath, MD, Ladderup Wealth Management.
"Although no specific timeline has been indicated for reducing repo rates, it is anticipated that the Reserve Bank of India will initiate this process only after observing a similar move by the United States, aiming to mitigate the risk of capital outflows from India," Nath adds.
What experts make of Feb 8 RBI announcements
RBI MPC Meet Feb 2024 LIVE Update: Policy largely on expected lines, MPC prefers to remain cautious, says Union AMC's Parijat Agrawal
Parijat Agrawal, Head-Fixed Income at Union Asset Management Company, points out that the macroeconomic environment is turning favourable and the outlook for growth and inflation has improved.
"We expect the exceptional tightness in liquidity to ease and the yields to remain rangebound in the near term,” says Agrawal.
RBI MPC Meet Feb 2024 LIVE Update: Pause of repo rate to empower masses with strengthened purchasing power, says Ajmera Realty & Infra CFO
The RBI, cautious of the global headwinds, has defined a new risk brewing in the form of elevated debt levels in advanced economies, says Nitin Bavisi, CFO, Ajmera Realty and Infra.
"With the RBI highlighting residential housing as the growth propeller for construction activity, we foresee strong growth-led demand across real estate markets, especially within and around key cities undergoing major infrastructural transformations. The pause of the repo rate will empower the masses with strengthened purchasing power, thus providing momentum towards residential purchases and overall, contributing to the economic growth of the country," Bavisi adds.
RBI MPC Meet Feb 2024 LIVE Update: Interest rate environment stability to support housing market, says Knight Frank India's Shishir Baijal
“The central bank’s decision to maintain a pause in policy repo rate is in line with our expectation, and we consider this a comforting signal for the industry. Even though the inflationary pressures in most consumption categories have ebbed, food inflation continues to remain volatile. The RBI continues to remain watchful of inflationary expectations and the liquidity condition, which is currently in deficit, and it may continue to further tighten the liquidity condition to rein in inflation," says Shishir Baijal, Chairman and Managing Director. Knight Frank India.
"The fiscal consolidation plan outlined in the interim budget announcement, aiming to gradually reduce fiscal deficit to 4.5 per cent over the next two years, also provides a buffer against potential inflationary pressure. All these measures have the potential to bring down inflation to the RBI's target which will be comforting for the central bank to gradually pivot with a rate cut... We believe that lower home loan interest rates in the near future will serve as a big boost to homebuyer sentiment and enable better affordability, which is an extremely sensitive factor in this segment of the housing market," Baijal adds.
RBI MPC Meet Feb 2024 LIVE Update: Domestic financial system stays resilient with healthy balance sheets of banks, other financial institutions, says RBI Governor Shaktikanta Das
RBI Governor Shaktikanta Das points out that the financial parameters of NBFCs are also improving in tandem with those of the banking system.
"Good governance, robust risk management, sound compliance culture and protection of customers’ interest are of paramount importance for the safety and stability of the financial system and individual institutions," says the RBI chief.
The Reserve Bank lays great emphasis on these aspects, he adds. "We expect all regulated entities to accord the highest priority to these functions."
RBI MPC Meet Feb 2024 LIVE Update: What the RBI chief said on rupee, forex market
As of February 7, 2024, the rupee (INR) has remained stable against its peers in emerging market as well as a few advanced economies, the RBI chief points out.
Here are highlights of what he said on the forex market:
- The rupee exhibited the lowest volatility in 2023-24 (April-January) compared to the corresponding period in the past three years, in terms of coefficient of variation (CV)
- The exchange rate is market-determined; its relative stability in the recent period reflects strength and stability of the Indian economy, its sound macroeconomic fundamentals, financial stability, and improvements in the country's external position
- Rupee's relative stability in the recent period comes despite a stronger US dollar, elevated US Treasury yields
RBI MPC Meet Feb 2024 LIVE Update: What RBI chief said on inflation in February 8 speech
Here are some highlights of what the RBI chief said on inflation and consumer prices:
- Headline inflation rose to 5.7% in December after moderating to 4.9% in October
- That was primarily due to food inflation, mostly vegetables
- Core inflation (CPI inflation excluding food and fuel) remains strong across goods and services
- Uncertainties in food prices continue to impinge on the headline inflation trajectory
- MPC to carefully monitor any signs of generalisation of food price pressures which can fritter away gains in easing of core inflation
- Monetary policy must continue to be actively disinflationary to align inflation to 4% target on a durable basis
- MPC will remain resolute in this commitment
Read full text of RBI Governor Shaktikanta Das's speech here
RBI MPC Meet Feb 2024 LIVE Update: RBI in no rush to cut rates, says Equirus economist
Anitha Rangan, economist at Equirus, says that while batting for India’s resilience amidst global volatility, it appears that the RBI is not in discussion for rate cuts as growth is very strong and does not require rate support, and inflation is subject to food price risks and is not at 4.0 per cent on a durable basis.
"Also, no giveaways on liquidity. In the quest to preserve the strength and bat for long-term growth, the RBI will rather look to maintain vigil and not in any rush to cut rates," Rangan adds.
RBI MPC Meet Feb 2024 LIVE Update: Shaktikanta Das says Indian economy has performed remarkably well in unsettled global environment
The RBI Governor says that growth in the domestic economy is accelerating and outpacing most forecasts while inflation is on a downward trajectory. Here are highlights of what he said:
- India’s potential growth propelled by structural drivers like
- improving physical infra
- development of world class digital and payments tech
- ease of doing business
- enhanced labour force participation
- improved quality of fiscal spending
"Our multipronged, proactive, and calibrated policies on the monetary, regulatory and supervisory fronts have worked well to maintain and strengthen macroeconomic and financial stability," says Das.
- India’s potential growth propelled by structural drivers like
RBI MPC Meet Feb 2024 LIVE Update: Shaktikanta Das says Indian economy has performed remarkably well in unsettled global environment
The RBI Governor says that growth in the domestic economy is accelerating and outpacing most forecasts while inflation is on a downward trajectory. Here are highlights of what he said:
- India’s potential growth propelled by structural drivers like
- improving physical infra
- development of world class digital and payments tech
- ease of doing business
- enhanced labour force participation
- improved quality of fiscal spending
"Our multipronged, proactive, and calibrated policies on the monetary, regulatory and supervisory fronts have worked well to maintain and strengthen macroeconomic and financial stability," says Das.
- India’s potential growth propelled by structural drivers like
RBI MPC Meet Feb 2024 LIVE Update: Shaktikanta Das says global economy continues to present a mixed picture
Where on the one hand, the odds of soft-landing have increased with inflation moving closer to the target, and growth holding up better than expected in major advanced and emerging market economies, on the other, wars and conflicts, and the emergence of new flashpoints in different parts of the world, with disruptions in the Red Sea being the latest in the series, impart uncertainty to the global macroeconomic outlook, says the RBI chief.
Image: RBI
RBI MPC Meet Feb 2024 LIVE Update: No change in home loan rates to help maintain overall positive consumer sentiment in housing market, says property consultant ANAROCK's Anuj Puri
Anuj Puri, Chairman of ANAROCK Group, points out that by leaving the repo rate unchanged, the RBI has once again extended the festive bonanza granted to the homebuyers in its last two policy announcements. Homebuyers retain their advantage of relatively affordable home loan interest rates, says Puri.
"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 seven cities in the last one year, this breather by the RBI is a distinct advantage to homebuyers... Going forward, we can expect the momentum in housing sales to continue, significantly aided by the unchanged repo rates which will keep home loan interest rates attractive and also signal the ongoing robustness of India’s positive economic outlook," Puri adds.
RBI MPC Meet Feb 2024 LIVE Update: Market wizard Anil Singhvi says policy announcements slightly negative for banks
Zee Business Managing Editor Anil Singhvi points out that the RBI announcements appear to be slightly negative from the perspective of the banking space, and expects the Nifty Bank to decline all the way back to the 45,525-45,625 range.
"We will assess the situation from there," he says.
Catch minute-by-minute market updates, LIVE analysis, stock recommendations, the views of market guru Anil Singhvi and other experts here
RBI MPC Meet Feb 2024 LIVE Update: Rate cut may be as far as FY26, says senior economist Saugata Bhattacharya
Senior economist Saugata Bhattacharya highlights that the hawkish tone of the RBI suggests that a rate cut may not come in August or even December but only in FY26.
RBI MPC Meet Feb 2024 LIVE Update: RBI remains committed to taming inflation, says senior economist Saugata Bhattacharya
Senior economist Saugata Bhattacharya points out that the central bank appears to remain committed to taming inflation.
RBI MPC Meet Feb 2024 LIVE Update: Market worried about liquidity, says senior economist Saugata Bhattacharya
Senior economist Saugata Bhattacharya tells Zee Business that there is a lot of concern in the market about liquidity conditions, especially about short-term rates.
The RBI statement is hawkish, the economist adds.
RBI MPC Meet Feb 2024 LIVE Update: RBI remains nimble and flexible in managing liquidity, says Governor Shaktikanta Das
RBI MPC Meet Feb 2024 LIVE Update: Market wizard Anil Singhvi says no change in rate, stance as expected
Zee Business Managing Editor Anil Singhvi also points out that the central bank's latest policy has no liquidity-related measures, also along expected lines.
Catch minute-by-minute market updates, LIVE analysis, stock recommendations, the views of market guru Anil Singhvi and other experts here
RBI MPC Meet Feb 2024 LIVE Update: Here's how interest rate-sensitive stocks fare 30 minutes into RBI policy announcements
Financial services
Stock Change (%) CMP SBIN 3.5 698.9 RECLTD 1.5 516.65 IEX 1.31 147 HDFCLIFE 1.28 612.9 SBILIFE 1.11 1,485.75 LICHSGFIN 0.69 650.45 ICICIGI 0.58 1,634.05 PFC 0.48 471.25 ICICIPRULI 0.33 532.2 SBICARD 0.1 725.9 HDFCBANK 0.04 1,430.55 HDFCAMC -0.02 3,642.40 SHRIRAMFIN -0.19 2,409.00 KOTAKBANK -0.25 1,788.10 BAJAJFINSV -0.43 1,589.35 ICICIBANK -0.59 1,016.15 AXISBANK -0.59 1,062.75 BAJFINANCE -0.8 6,655.25 CHOLAFIN -1.1 1,147.00 MUTHOOTFIN -1.98 1,396.95 Auto
Stock Change (%) CMP BAJAJ-AUTO 0.45 7,736.35 HEROMOTOCO 0.08 4,797.20 MRF 0.01 1,43,012.85 TATAMOTORS -0.06 933.2 M&M -0.21 1,717.35 BALKRISIND -0.43 2,339.25 BOSCHLTD -0.47 25,104.45 TIINDIA -0.48 3,583.00 ASHOKLEY -0.56 176.8 TVSMOTOR -0.61 2,051.40 MOTHERSON -0.9 121.2 BHARATFORG -0.9 1,273.65 SONACOMS -0.93 621.55 EICHERMOT -0.96 3,889.85 MARUTI -1.23 10,801.60 Real estate
Stock Change (%) CMP SWANENERGY 2.65 678.55 PHOENIXLTD 1.32 2,798.00 OBEROIRLTY 1.31 1,333.55 DLF 0.44 831.1 MAHLIFE -0.1 592.4 GODREJPROP -0.93 2,273.20 PRESTIGE -1.02 1,214.00 LODHA -1.94 1,109.40 BRIGADE -2.93 1,037.95 SOBHA -3.06 1,426.05 Consumer durables
Stock Change (%) CMP VOLTAS 1.51 1,054.55 BLUESTARCO 1.24 1,183.25 CROMPTON 0.66 290.05 VGUARD 0.29 315 AMBER 0.04 4,417.80 HAVELLS 0.02 1,351.65 BATAINDIA -0.2 1,418.55 TITAN -0.21 3,568.95 RAJESHEXPO -0.43 348.75 KAJARIACER -0.72 1,290.75 DIXON -0.73 6,263.10 ORIENTELEC -0.88 213 WHIRLPOOL -0.91 1,361.00 TTKPRESTIG -1.11 782.5 RELAXO -1.18 868.4 Catch minute-by-minute market updates, LIVE analysis, stock recommendations, the views of market guru Anil Singhvi and other experts here
RBI MPC Meet Feb 2024 LIVE Update: Here's how interest rate-sensitive stocks fare 30 minutes into RBI policy announcements
Financial services
Stock Change (%) CMP SBIN 3.5 698.9 RECLTD 1.5 516.65 IEX 1.31 147 HDFCLIFE 1.28 612.9 SBILIFE 1.11 1,485.75 LICHSGFIN 0.69 650.45 ICICIGI 0.58 1,634.05 PFC 0.48 471.25 ICICIPRULI 0.33 532.2 SBICARD 0.1 725.9 HDFCBANK 0.04 1,430.55 HDFCAMC -0.02 3,642.40 SHRIRAMFIN -0.19 2,409.00 KOTAKBANK -0.25 1,788.10 BAJAJFINSV -0.43 1,589.35 ICICIBANK -0.59 1,016.15 AXISBANK -0.59 1,062.75 BAJFINANCE -0.8 6,655.25 CHOLAFIN -1.1 1,147.00 MUTHOOTFIN -1.98 1,396.95 Auto
Stock Change (%) CMP BAJAJ-AUTO 0.45 7,736.35 HEROMOTOCO 0.08 4,797.20 MRF 0.01 1,43,012.85 TATAMOTORS -0.06 933.2 M&M -0.21 1,717.35 BALKRISIND -0.43 2,339.25 BOSCHLTD -0.47 25,104.45 TIINDIA -0.48 3,583.00 ASHOKLEY -0.56 176.8 TVSMOTOR -0.61 2,051.40 MOTHERSON -0.9 121.2 BHARATFORG -0.9 1,273.65 SONACOMS -0.93 621.55 EICHERMOT -0.96 3,889.85 MARUTI -1.23 10,801.60 Real estate
Stock Change (%) CMP SWANENERGY 2.65 678.55 PHOENIXLTD 1.32 2,798.00 OBEROIRLTY 1.31 1,333.55 DLF 0.44 831.1 MAHLIFE -0.1 592.4 GODREJPROP -0.93 2,273.20 PRESTIGE -1.02 1,214.00 LODHA -1.94 1,109.40 BRIGADE -2.93 1,037.95 SOBHA -3.06 1,426.05 Consumer durables
Stock Change (%) CMP VOLTAS 1.51 1,054.55 BLUESTARCO 1.24 1,183.25 CROMPTON 0.66 290.05 VGUARD 0.29 315 AMBER 0.04 4,417.80 HAVELLS 0.02 1,351.65 BATAINDIA -0.2 1,418.55 TITAN -0.21 3,568.95 RAJESHEXPO -0.43 348.75 KAJARIACER -0.72 1,290.75 DIXON -0.73 6,263.10 ORIENTELEC -0.88 213 WHIRLPOOL -0.91 1,361.00 TTKPRESTIG -1.11 782.5 RELAXO -1.18 868.4 Catch minute-by-minute market updates, LIVE analysis, stock recommendations, the views of market guru Anil Singhvi and other experts here
RBI MPC Meet Feb 2024 LIVE Update: Besides interest rate, loan borrowers should be made aware of other charges, fees, says Shaktikanta Das
RBI Governor Shaktikanta Das says the lending process involves a lot of fees and other charges, such as documentation charges, that the customer needs to bear upfront while taking a loan. These charges need to be communicated to the customer along with the rate of interest, he says.
A separate circular will be issued in this regard, he says.
The move will impact small borrowers, the RBI chief adds.
He also says that the central bank lays a great emphasis on the overall interest of the public.
RBI MPC Meet Feb 2024 LIVE Update: RBI Governor Shaktikanta Das CAD narrowed to 1% in Q2 FY24 from 3.8% a year ago
The RBI chief highlights that the country's current account deficit (CAD) narrowed to 1% in the second quarter of the current financial year (Q2 FY24) from 3.8% in the corresponding period a year ago.
RBI MPC Meet Feb 2024 LIVE Update: RBI Governor Shaktikanta Das says GDP growth estimate for 2023-24 revised to 7.3% from 7.0%
RBI MPC Meet Feb 2024 LIVE Update: BREAKING—RBI projects consumer inflation at 4.5% in FY25
Here's where the RBI forecasts retail inflation in all of the four quarters in the financial year ending March 2025:
- Q1 FY25: 5%
- Q2 FY25: 4%
- Q3 FY25: 4.6
- Q4 FY25: 4.7
RBI MPC Meet Feb 2024 LIVE Update: BREAKING—RBI projects consumer inflation at 5.4% in current financial year
The central bank estimates retail inflation, gauged by the Consumer Price Index (CPI), at 5.0% in the quarter ending March 2024.
RBI MPC Meet Feb 2024 LIVE Update: BREAKING—RBI projects FY25 GDP growth at 7%
Here's where the RBI forecasts GDP growth to be in all of the four quarters in the financial year beginning April 2024:
- Q1 FY25: 7.2% (vs 6.7% earlier)
- Q2 FY25: 6.8%
- Q3 FY25: 7%
- Q4 FY25: 6.9%
RBI MPC Meet Feb 2024 LIVE Update: BREAKING—MPC votes 5:1 to leave rate unchanged, maintain policy stance
The MPC decides by a majority of five out of six members to remain focused on the "withdrawal of accommodation" (the existing policy stance).
The RBI chief says that the decision will ensure that inflation "progressively aligns to the target while supporting growth".
RBI MPC Meet Feb 2024 LIVE Update: BREAKING—RBI leaves repo rate unchanged at 6.5%
RBI MPC Meet Feb 2024 LIVE Update: RBI may say it is watching liquidity situation carefully, says Ajay Bagga
As Dalal Street awaits the outcome of the first scheduled policy review of the year, market expert Ajay Bagga has said that the central bank may announce that it is monitoring the liquidity situation in the system carefully and will inject more liquidity as required.
RBI MPC Meet Feb 2024 LIVE Update: How interest rate-sensitive stocks fare ahead of RBI policy announcements
Financial services
Stock Change (%) CMP SBIN 12.7 687.95 IEX 2.3 147.4 RECLTD 7.45 516.45 SBILIFE 9.25 1,478.70 LICHSGFIN 3.75 649.75 PFC 1.05 470.05 HDFCLIFE 0.8 605.95 SBICARD 0.8 725.95 HDFCBANK 1.5 1,431.45 ICICIPRULI 0.55 531 KOTAKBANK 0.2 1,792.80 AXISBANK -0.25 1,068.85 ICICIGI -0.8 1,623.80 BAJAJFINSV -1.7 1,594.50 HDFCAMC -8.1 3,634.90 ICICIBANK -2.9 1,019.25 SHRIRAMFIN -8.25 2,405.40 BAJFINANCE -34.2 6,675.00 MUTHOOTFIN -9.1 1,416.05 CHOLAFIN -18.45 1,141.35 Auto
Stock Change (%) CMP MRF 133.75 1,43,130.55 M&M 1.6 1,722.60 BAJAJ-AUTO 4.8 7,706.70 HEROMOTOCO 0.85 4,794.20 TIINDIA -6.45 3,594.00 TATAMOTORS -2 931.8 BOSCHLTD -65.4 25,157.75 MOTHERSON -0.4 121.9 EICHERMOT -17.65 3,910.00 TVSMOTOR -10.9 2,053.05 BALKRISIND -16.4 2,333.00 SONACOMS -5.7 621.7 ASHOKLEY -1.7 176.1 BHARATFORG -12.6 1,272.65 MARUTI -174.6 10,761.10 Real estate
Stock Change (%) CMP SWANENERGY 22.1 683.15 OBEROIRLTY 13.7 1,330.05 PHOENIXLTD 18.5 2,780.00 DLF -1.15 826.3 MAHLIFE -2.8 590.2 PRESTIGE -6.7 1,219.75 GODREJPROP -16.5 2,278.10 LODHA -18.8 1,112.50 BRIGADE -20.05 1,049.25 SOBHA -56.4 1,414.65 Consumer durables
Stock Change (%) CMP BLUESTARCO 14.1 1,182.80 VGUARD 2.4 316.5 CROMPTON 1.85 290 TITAN 7.4 3,583.90 VOLTAS 2.1 1,041.00 BATAINDIA 2.7 1,424.15 AMBER 7.45 4,423.40 RAJESHEXPO -0.35 349.9 HAVELLS -3.85 1,347.50 DIXON -21.75 6,287.10 WHIRLPOOL -7.95 1,365.55 RELAXO -5.75 873 KAJARIACER -10.1 1,290.05 TTKPRESTIG -8.35 782.95 ORIENTELEC -2.75 212.15 Catch minute-by-minute market updates, LIVE analysis, stock recommendations, the views of market guru Anil Singhvi and other experts here
RBI MPC Meet Feb 2024 LIVE Update: Expect no change in key rates, GDP, inflation forecasts today, says market expert Ajay Bagga
Market veteran Ajay Bagga has listed the following points as his expectations from today's monetary policy statement:
- Rates to be held steady
- In light of tight liquidity in money markets, some talk of a CRR cut; no move expected
- No change in inflation, GDP forecasts
- RBI is watching liquidity situation carefully and will inject liquidity as required
- Growth impulses: Economic growth strong, with fiscal deficit, CAD on a downward trend
- Credit growing faster than deposit growth; being monitored and communicated separately, not too big an issue at present
- Policy stance to remain at 'withdrawal of accomodation' for now
- No guidance on timing and extent of rate cuts; expect first rate cut to happen around August
- First the policy stance will change to 'neutral', then rate cuts to follow
- Geopolitical risks, especially the Red Sea disruptions, to be cited as potential risk areas
RBI MPC Meet Feb 2024 LIVE Update: Market wizard Anil Singhvi sees Nifty50 support at 21,800-21,865, strong buy zone at 21,700-21,775
Zee Business Managing Editor Anil Singhvi sees support for the headline Nifty50 index emerging at 21,800-21,865 levels and a strong buy zone at 21,700-21,775 levels. For the Nifty Bank, he expects support to come in at 45,525-45,625 levels and a strong buy zone at 45,000-45,200 levels.
Read more on what market guru Anil Singhvi makes of the market today
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RBI MPC Meet Feb 2024 LIVE Update: Sensex up 321 points at 72,473 in pre-open market
The 30-scrip index settles the pre-opening session with a gain of 321.4 points, or 0.5 per cent, at 72,473.4.
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RBI MPC Meet Feb 2024 LIVE Update: GIFT Nifty futures up over 40 pts, signal a positive opening ahead on Dalal Street
GIFT Nifty futures, an early indicator of the headline Nifty50 index, are up 43.3 points, or 0.2 per cent, at 22,047 at this hour, suggesting a mildly positive start on Dalal Street today.
Catch minute-by-minute market updates, LIVE analysis, stock recommendations, the views of market guru Anil Singhvi and other experts here
RBI MPC Meet Feb 2024 LIVE Update: RBI Governor Shaktikanta Das scheduled to announce February 6-8 meeting outcome at 10 am
RBI MPC Meet Feb 2024 LIVE Update: Ahead of the February 2024 policy statement, take a look at key highlights of the last MPC review
At the last scheduled review, held in December, the all-powerful MPC kept the repo rate unchanged at 6.5 per cent, as widely expected by economists. The Committee voted unanimously to maintain the status quo on the repo rate, or the key interest rate at which the RBI lends money to commercial banks, and voted 5:1 to retain the policy stance at 'withdrawal of accommodation' as it reiterated its commitment to contain inflation within 200 bps of its 4.0 per cent medium-term target.
The RBI raised its forecast for economic growth in the current financial year to 7.0 per cent from 6.5 per cent.
Read more on the Dec 2023 MPC policy review
RBI MPC Meet Feb 2024 LIVE Update: RBI Governor Shaktikanta Das to reveal outcome of February 6-8 policy review at 10 am today
Reserve Bank of India Governor Shaktikanta Das is scheduled to announce the key highlights of the February 2024 monetary policy review, following discussions that began on February 6, at 10 am today.
RBI MPC Meet Feb 2024 LIVE Update: Rate pause likely to continue, says Adhil Shetty, CEO, BankBazaar
Adhil Shetty, CEO, BankBazaar, says "We expect the RBI to continue doing a stellar job of managing inflation. To borrow a cricket analogy, we expect the batsman to play the ball on its merit. The RBI will consider the macroeconomic data and decide its course. The data suggests a rate pause is likely to continue, followed by a cut whenever inflation has softened enough." — Read More
RBI MPC Meet Feb 2024 LIVE Update: Rate pause likely to continue, says Adhil Shetty, CEO, BankBazaar.com
Adhil Shetty, CEO, BankBazaar.com, says "We expect the RBI to continue doing a stellar job of managing inflation. To borrow a cricket analogy, we expect the batsman to play the ball on its merit. The RBI will consider the macroeconomic data and decide its course. The data suggests a rate pause is likely to continue, followed by a cut whenever inflation has softened enough." — Read More
RBI MPC Meet Feb 2024 LIVE Update: Liquidity unlikely to get neutral by fiscal year-end, says Emkay Global's Madhavi Arora
"We do not agree with some segment of the markets that are expecting liquidity to get neutral by fiscal year-end," says Madhavi Arora, Lead Economist at Emkay Global Financial Services.
"The deposit rates have been lagging the rate hike catch-up, (also helping small savings funds indirectly). We see deposit rates peaking here on, even as C/D ratio is near 80%. We see system liquidity issue to persist, even as they ease from Jan’24 peak," the economist adds.
RBI MPC Meet Feb 2024 LIVE Update: Can you expect RBI to take liquidity-easing measures in the upcoming policy review?
Seven out of every 10 participants in a poll of economists conducted by Zee Business see the RBI's all-powerful Monetary Policy Committee (MPC) announcing measures to ease liquidity conditions in the system in the February 8 statement.
RBI MPC Meet Feb 2024 LIVE Update: Will RBI change its GDP projections in February 8 statement?
Seven out of every 10 participants in a poll of economists by Zee Business expect no change in the RBI's GDP projections in the February 2024 review.
Currently, the RBI projects the country's GDP growth at 7.0 per cent for the current financial year.
Meanwhile, the economy is forecast to grow 6.9 per cent this fiscal year and 6.3 per cent in the next, according to a Reuters poll.
RBI MPC Meet Feb 2024 LIVE Update: Do you know how repo rate impacts home loan borrowers?
A borrower's home loan and EMI are determined by the repo rate.
But do you know how that happens?
Adjustments made in the benchmark rate by the central bank are reflected in the interest rates commercial banks charge on their loan offerings, such as home loans and auto loans.
A rise in the repo rate will increase home loan EMIs when commercial banks raise their interest rates. This indicates that the borrower will have to pay more than earlier.
On the other hand, if the RBI cuts the repo rate, commercial banks are required to reduce their interest rates as well. This indicates that the customer will bear less burden of repayment.
RBI MPC Meet Feb 2024 LIVE Update: Will RBI change its GDP projections in February 8 statement?
Seven out of every 10 participants in a poll of economists by Zee Business expect no change in the RBI's GDP projections in the February 2024 review.
Currently, the RBI projects the country's GDP growth at 7.0 per cent for the current financial year.
Meanwhile, the economy is forecast to grow 6.9 per cent this fiscal year and 6.3 per cent in the next, according to a Reuters poll.
RBI MPC Meet Feb 2024 LIVE Update: Rate cut of 50–75 bps expected after June, says expert
Suman Chowdhury, Chief Economist and Head of Research, at Acuité Ratings & Research, anticipates the status quo at least until June 2024. Thereafter, a rate cut totalling 50–75 bps in the next six months is anticipated by the expert. The policy stance may, however, be changed to neutral by April 24, given the low likelihood of a further rise in interest rates, Chowdhury stated.
RBI MPC Meet Feb 2024 LIVE Update: Expect RBI to continue with its stellar job of managing inflation, says Bankbazaar's Adhil Shetty
"To borrow a cricket analogy, we expect the batsman to play the ball on its merit. The RBI will consider the macroeconomic data and decide its course," says Adhil Shetty, CEO of BankBazaar.com.
"The data suggests a rate pause is likely to continue, followed by a cut whenever inflation has softened enough," Shetty adds.
RBI MPC Meet Feb 2024 LIVE Update: 'Policy rate cut by June 2024'
Ajit Kabi, a research analyst at LKP Securities, forecasts a policy rate cut by June 2024, and believes the apex bank may see a shift in stance to “neutral’ from “withdrawal of accommodation”. He adds, “Given the tightening liquidity condition, the RBI is likely to support economic growth with a cautious stance on inflation. Consequently, we expect the unchanged policy rate and the possibility of a shift in stance to NEUTRAL.”
RBI MPC Meet Feb 2024 LIVE Update: Not much excitement in markets ahead of RBI policy meet, says report
As per Emkay Global Financial Services' report there is not much excitement in the markets ahead of the upcoming MPC meet as most are expecting it to be a non-event with traces of dovishness similar to Dec-23. “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. It will also fall short of any stance change (a close call). No material change in the assessment of macro variables is expected,” Emkay Global Financial Services said in a report.
RBI MPC Meet Feb 2024 LIVE Update: When can you expect RBI to start reducing the repo rate?
Seven out of every 10 participants in a Zee Business poll of economists expect the Reserve Bank of India's Monetary Policy Committee to announce the first cut in the repo rate in the current cycle in the August review. The remaining participants expect it as easily as June.
RBI MPC Meet Feb 2024 LIVE Update: Do you know what the repo rate is and how it impacts you?
The repo rate, also known as the repurchase rate, is the rate at which the RBI lends money to commercial banks.
Here are some important things to know about the repo rate:
- It is an important tool used by the RBI to control inflation and stabilise the economy
- An increase in the repo rate makes borrowing money more expensive for banks; this can have a direct impact on the cost of loans, such as home loans and auto loans, making them more expensive for the consumer
- A reduction in the repo rate, on the other hand, makes borrowing money cheaper for banks, leading to a decrease in interest rates for consumers; this can make loans more affordable for the consumer
In January, RBI Governor Shaktikanta Das said economy likely to grow 7% in 2024-25, inflation to ease further
While praising the government for structural reforms undertaken in recent years that have boosted the medium and long-term growth prospects of the country's economy, the RBI chief said the GDP growth rate should stand at 7.0 per cent in the next fiscal year while inflation eases further.
India presents a picture of growth and stability amidst a challenging global macroeconomic environment, he said while speaking at a CII session on 'High growth, low risk: The India story' during the annual World Economic Forum meeting.
Here are some of the other highlights of what the RBI Governor said:
- Chances of soft landing have improved
- Markets have reacted positively
- Geopolitical risks, climate risks remain a concern
- India's real GDP growth expected at 7.2% this year
- With strong domestic demand, India remains the fastest growing major economy
- External balance comfortably manageable with robust forex reserves
Read more on what the RBI Governor said
File photo | Image: Reuters
RBI MPC Meet Feb 2024 LIVE Update: RBI Governor Shaktikanta Das is confident of containing consumer inflation at medium-term goal of 4%
While consumer inflation, gauged by the Consumer Price Index (CPI), has largely remained within the central bank's comfort zone of 2-6 per cent, the RBI Governor has expressed confidence that the policy could bring the rate of increase in retail prices to its medium-term goal of 4 per cent.
Consumer inflation worsened to a four-month high of 5.69 per cent in December 2023, mainly on account of higher food prices, according to official data released in January. In August 2023, the reading touched a high of 6.83 per cent.
The RBI tracks consumer inflation closely for formulating its monetary policy. Read more on consumer inflation in India
Image: Reuters
RBI MPC Meet Feb 2024 LIVE Update: RBI Governor Shaktikanta Das is confident of containing consumer inflation at medium-term goal of 4%
All of the participants in a poll of economists conducted by Zee Business expect the Reserve Bank of India (RBI) to announce a reduction in the repo rate only after its US counterpart, the Federal Reserve, does so.
A near two-thirds majority in a Reuters poll of 60 economists predict the RBI to keep the rate unchanged until at least the third quarter of 2024, compared to expectations the Fed will lower its key interest rate next quarter.
RBI MPC Meet Feb 2024 LIVE Update: Where does the RBI peg GDP growth, consumer inflation in coming months?
Currently, the RBI projects the country's GDP growth at 7.0 per cent and retail inflation at 5.4 per cent for the year ending March 2024 citing "evenly balanced" risks.
Here are its quarterly forecasts for both macroeconomic indicators:
RBI GDP growth forecasts
- Q3 FY24: 6.5%
- Q4 FY24: 6.0%
- Q1 FY25: 6.7%
- Q2 FY25: 6.5%
- Q3 FY25: 6.4%
RBI consumer inflation forecasts
- Q3 FY24: 5.6%
- Q4 FY24: 5.2%
- Q1 FY25: 5.2%
- Q2 FY25: 4.0%
- Q3 FY25: 4.7%
RBI MPC Meet Feb 2024 LIVE Update: Did you know RBI has kept repo rate steady at 6.5% since February 2023?
The RBI has kept the repo rate steady at 6.5 per cent for the last one year after raising it by a cumulative 250 basis points in six revisions between May 2022 and December 2022.
Here's a summary of changes in the repo rate since the pandemic year:
Date Repo rate December 8, 2023 6.50% October 6, 2023 6.50% August 10, 2023 6.50% June 8, 2023 6.50% April 6, 2023 6.50% February 8, 2023 6.50% December 7, 2022 6.25% September 30, 2022 5.90% August 5, 2022 5.40% June 8, 2022 4.90% May 4, 2022 4.40% April 8, 2022 4.00% February 10, 2022 4.00% December 8, 2021 4.00% October 9, 2021 4.00% August 6, 2021 4.00% June 4, 2021 4.00% April 7, 2021 4.00% February 5, 2021 4.00% December 4, 2020 4.00% October 9, 2020 4.00% August 6, 2020 4.00% May 22, 2020 4.00% March 27, 2020 4.40% February 6, 2020 5.15% RBI MPC Meet Feb 2024 LIVE Update: Will RBI-led Monetary Policy Committee keep repo rate unchanged once again?
Will there be a rate cut in the February 8 RBI policy statement?
None of the participants in a poll of economists by Zee Business expects the RBI's all-powerful Monetary Policy Committee to deliver a repo rate cut in its February 2024 review.
Nearly all of the economists in a poll by news agency Reuters also expect the RBI to hold the key interest rate steady at 6.5 per cent on February 8. They expect the RBI's MPC to keep the rate unchanged until at least July, longer than some developed market central banks.
All but one of the 60 economists in the Reuters poll, conducted from January 10 to February 1, expects the RBI to hold the repo rate at 6.5 per cent in the Feb 8 statement.
RBI MPC Meet Feb 2024 LIVE Update: Welcome to Zeebiz.com's blog on the RBI's February 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 February 2024 review?
The February 2024 review, the first bi-monthly review by the RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) this year, comes days after Finance Minister Nirmala Sitharaman unveiled the Interim Budget 2024 in Parliament on February 1, 2024. Most economists expect the RBI's all-powerful MPC to maintain the repo rate at the existing level in its February 8 statement.
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