RBI MPC Meeting HIGHLIGHTS: Shaktikanta Das announces status quo on repo rate based on 5:1 MPC vote; full-year GDP, inflation forecasts unchanged
RBI monetary policy repo rate, RBI MPC meeting highlights: RBI Governor Shaktikanta Das announced the MPCs decision, based on a 5:1 vote, to keep the repo rate-or the key interest rate at which the central bank lends short-term funds to commercial banks-unchanged at 6.5 per cent. This is the first MPC meeting of the financial year 2024-25 (FY25).
RBI monetary policy repo rate, RBI MPC meeting highlights: The RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) voted 5:1 to keep the repo rate at 6.5 per cent in the first b-monthly review of the new financial year (FY25). The decision was in line with the expectations of most economists.
While the RBI retained its full-year forecasts for GDP growth and consumer inflation unchanged, it tweaked made a number of tweaks in the quarterly projections.
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Catch the latest updates on the April 2024 review of the RBI Governor-led MPC:
Latest Updates
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RBI MPC Meeting April 2024 Live Update: RBI policy an affirmation of goldilocks for India with high growth, low inflation in FY25-FY26, says SBI Chairperson
“Tracking the market expectation of the status quo, the monetary policy statement is an affirmation of goldilocks for India with high growth and low inflation in FY25 and FY26," says SBI Chairperson Dinesh Kumar Khara.
"Consumers' confidence in urban households continues to improve, while rural demand remains upbeat. The regulatory policy as usual has continued the deepening of payment systems with new functionality in UPI. The review of the LCR framework with the advent of 24/7 payment systems could act as a positive enabler to address frictional liquidity mismatches. The trading of sovereign green bonds in IFSC is also a welcome move and will broaden the markets," Khara adds.
RBI MPC Meeting April 2024 Live Update: RBI seems in no hurry to cut rates but to align inflation structurally to long-term target, says Mirae Asset Investment Managers' Mahendra Kumar Jajoo
The RBI may find itself in a pole position with growth momentum going strong, core inflation dropping and expectations of normal monsoon providing comfort on the headline inflation, particularly taming food inflation, says Mahendra Kumar Jajoo, CIO-Fixed Income at Mirae Asset Investment Managers.
'However, possible spillovers from ongoing geopolitics developments, a reversion in commodity prices from recent lows, and the lingering impact of global food price volatility create caution amongst the members... Markets may find confidence in projecting rate cuts in later part of the year and interest rates may remain stable with a downward bias," Jajoo adds.
RBI MPC Meeting April 2024 Live Update: Data till December 2023 indicates bank & NBFC capital, asset quality remain healthy, says Shaktikanta Das
Here are some highlights of what Shaktikanta Das says:
- Financial indicators of NBFCs in line with banking system, as per latest available data
- Banks, NBFCs< other financial entities must continue to give highest priority to quality of governance, adherence to regulatory guidelines
- Financial sector players, by and large, should always be mindful of the fact that they operate with public money
- RBI to continue to constructively engage with financial entities in this regard
- RBI to continue to follow a consultative approach
- RBI to undertake review of regulations in line with evolving financial landscape
RBI MPC Meeting April 2024 Live Update: Tight demand-supply situation in certain pulses, production of key vegetables warrant close monitoring
Here's what the RBI chief says on inflation:
- Inflation has come down significantly but remains above target
- Food inflation continues to exhibit considerable volatility impeding the ongoing disinflation process
- Food price uncertainties continue to weigh on inflation trajectory
- A record rabi wheat production to help temper price pressure, replenish buffer stocks
- Early indication of a normal monsoon augurs well for kharif season
- International food prices remain benign
- Frequent, overlapping adverse climate shocks pose key upside risks to outlook on food prices in domestic as well as international markets
- Fuel deflation likely to deepen in near term
- Recent uptick in crude oil rates needs to be closely monitored
- Continuing geopolitical tensions pose upside risk to commodity prices, supply chains
- CPI inflation peaked at 7.8 per cent in April 2022
- Elephant has now gone out for a walk and appears to be returning to the forest | Read more on the RBI chief's 'elephant in the room' remark
- Would like elephant to return to forest and remain there on a durable basis
- It is essential in best interest of economy that CPI inflation continues to moderate, aligns to target
- Task remains unfinished till this is achieved
- Effort is to ensure price stability on enduring basis, paving way for sustained period of high growth
RBI MPC Meeting April 2024 Live Update: Domestic economic activity continues to expand at accelerated pace, says Shaktikanta Das
Here are some highlights of what the RBI chief says on the domestic economy:
- Domestic economic activity supported by fixed investment, improving global environment
- From supply side, industrial activity led by manufacturing continued momentum
- With rural demand catching up, consumption expected to support economic growth in FY25
- External demand improved in February with exports registering double-digit expansion but trade deficit widened as imports also increased
- Outlook for agriculture, rural activity bright; good rabi wheat crop, improved prospects of kharif crop amid expectation of a normal south-west monsoon
- Strong growth momentum gives policy space to unwaveringly focus on price stability
RBI MPC Meeting April 2024 Live Update: People can deposits at cash deposit machines by using UPI, says Shaktikanta Das
"Our next announcement is related to enabling UPI for the cash deposit facility. Deposit of cash through cash deposit machines is primarily being done through debit cards. Given the experience gained from card-less cash withdrawal using UPI at the ATMs, it is now supposed to also facilitate deposit of cash in CDMs using UPI," says the RBI chief.
RBI MPC Meeting April 2024 Live Update: Status quo on interest rate, stance & full-year GDP projection, here are key takeaways of FY25's first policy review
- No change in key lending rate; repo rate stands at 6.5%
- MPC votes 5:1 to hold repo rate, maintain policy stance
- MPC votes 5:1 to change stance to 'accommodative'
- Consumer inflation near target range but food prices remain a challenge
- FY25 real GDP growth projection retained at 7%
- FY25 CPI inflation forecast maintained at 4.5%
- RBI sees possibility of surge in commodity prices owing to geopolitical tensions
Read more on key takeaways of the RBI's first policy review of FY25
RBI MPC Meeting April 2024 Live Update: Need to remain vigilant on food prices given higher temperature April-June projections, says Shaktikanta Das
Reserve Bank Governor Shaktikanta Das says that the impact of lower fuel prices on inflation will deepen in the coming months.
Referring to consumer inflation, the RBI chief says that the "elephant seems to have gone for a walk" and the central bank wants it to "remain in the forest".
RBI MPC Meeting April 2024 Live Update: Don't expect rate cut before December, says Saugata Bhattacharya
In conversation with Zee Business Managing Editor Anil Singhvi, senior economist Saugata Bhattacharya says he doesn't see the possibility of the RBI lowering the key lending rate before December.
The RBI Governor has hinted at controlling inflation at all costs, in his elaborate "elephant in the room" remarks, which now suggests that the central bank won't only wait till October (as anticipated earlier) but till December before reducing the repo rate, the economist explains.
RBI MPC Meeting April 2024 Live Update: MPC policy takes recognition of fluidity of global narratives, says Emkay Global economist
"As we expected, the MPC policy took recognition of fluidity of global narratives... This suggests that when needed, the aim of financial stability may even precede inflation management," says Madhavi Arora, Lead Economist at Emkay Global Financial Services.
"We have long maintained that the RBI policy has been somewhat pegged to the Fed, specifically over the last two years, even as it formally targeted inflation. This seems fair, as external dynamics have been fluid, implying that the policy prerogative needs to be flexible for ensuring financial stability. The fluidity of global narratives and policy repricing, in conjunction with the near-term problem-of-plenty on INR/bonds, could make it arduous for the RBI to find a balance in its policy biases," Arora adds.
"We maintain the RBI’s tone will slowly tiptoe to ‘gracklish’ from the usual ‘hawk-dove’ signaling, implying a non-committal stance and limited definite forward guidance ahead," the economist adds.
RBI MPC Meeting April 2024 Live Update: As we progress towards 'RBI @ 100', upcoming decade going to be a transformational journey, says Shaktikanta Das
"As we progress towards RBI@100, the upcoming decade is going to be a transformational journey," says Shaktikanta Das.
Here are some highlights:
- RBI continues to focus on preserving financial stability, promoting a robust, resilient, future-ready system to support economic growth
- Price stability to be a key component of this endeavour
- Inflation is on a declining trajectory and GDP growth buoyant
- We should not lower our guard but continue to work towards ensuring that inflation aligns durably and sustainably to the target
- Our goal is in sight
- We must remain vigilant
RBI MPC Meeting April 2024 Live Update: Rate-sensitive stocks a mixed bag
Financial services
Stock CMP Change (%) SHRIRAMFIN 2,525.70 1.06 HDFCBANK 1,541.60 0.92 KOTAKBANK 1,762.35 0.75 CHOLAFIN 1,202.30 0.5 BAJAJFINSV 1,661.50 0.34 SBIN 761.9 0.34 IDFC 116.25 0.22 PFC 414.8 -0.05 RECLTD 473.25 -0.14 LICHSGFIN 642.05 -0.28 ICICIBANK 1,070.50 -0.77 AXISBANK 1,052.60 -0.97 BAJFINANCE 7,206.35 -1.06 MUTHOOTFIN 1,627.90 -2.32 Auto
Stock CMP Change (%) M&M 2,019.85 0.86 HEROMOTOCO 4,548.60 0.57 EICHERMOT 4,020.00 0.14 TATAMOTORS 1,009.50 -0.21 ASHOKLEY 172.55 -0.26 TATAMTRDVR 669.05 -0.35 MARUTI 12,509.75 -0.46 TVSMOTOR 2,071.00 -0.75 BAJAJ-AUTO 9,049.05 -1.06 Real estate
Stock CMP Change (%) MAHLIFE 663.15 6.14 OBEROIRLTY 1,582.00 2.94 GODREJPROP 2,466.00 2.34 DLF 906.5 2.06 PHOENIXLTD 2,903.55 1.86 PRESTIGE 1,318.80 1.1 LODHA 1,149.95 1.03 SUNTECK 440 0.14 BRIGADE 957 -0.08 SOBHA 1,535.00 -1.83 Consumer durables
Stock CMP Change (%) WHIRLPOOL 1,354.45 1.26 VOLTAS 1,232.70 1.21 DIXON 7,717.90 1.18 BLUESTARCO 1,359.05 0.8 AMBER 3,779.35 0.62 VGUARD 341.1 0.59 KAJARIACER 1,245.00 0.4 CROMPTON 281.75 0.39 RAJESHEXPO 308.5 0.15 KALYANKJIL 431.1 0.03 TITAN 3,778.95 -0.1 HAVELLS 1,534.90 -0.25 BATAINDIA 1,360.35 -0.84 CERA 7,420.00 -1.01 CENTURYPLY 659.25 -1.33 Read more on rate-sensitive stocks | Catch all stock market updates here
RBI MPC Meeting April 2024 Live Update: FY25 consumer inflation projection maintained at 4.5%
- Q1: 4.9% (vs 5% earlier)
- Q2: 3.8% (vs 4% earlier)
- Q3: 4.6%
- Q4: 4.5% (vs 4.7% earlier)
RBI MPC Meeting April 2024 Live Update: Inflation has moderated but remains above target range, says Shaktikanta Das
RBI MPC Meeting April 2024 Live Update: Task remains incomplete till inflation fully under control, says RBI chief
RBI MPC Meeting April 2024 Live Update: Real GDP growth projection stays at 7%; Shaktikanta Das says risks evenly balanced
Here are the quarter-wise projections for the financial year that began on April 1:
- Q1: 7.1% (vs 7.2% earlier)
- Q2: 6.9% (vs 6.8% earlier)
- Q3: 7%
- Q4: 7% (vs 6.9% earlier)
RBI MPC Meeting April 2024 Live Update: MPC votes 5:1 to keep key lending rate on hold
BREAKING: RBI keeps repo rate unchanged; MPC votes 5:1 to hold it at 6.5%
RBI MPC Meeting April 2024 Live Update: Here's how interest rate-sensitive stocks fare ahead of the RBI announcements due shortly
Financial services
Stock CMP Change (%) HDFCBANK 1,541.30 0.9 KOTAKBANK 1,761.40 0.7 CHOLAFIN 1,204.40 0.67 SHRIRAMFIN 2,513.15 0.55 BAJAJFINSV 1,664.95 0.55 HDFCLIFE 623.85 0.23 SBIN 759.75 0.06 IDFC 115.8 -0.17 LICHSGFIN 640.1 -0.58 ICICIBANK 1,070.55 -0.77 BAJFINANCE 7,222.15 -0.84 AXISBANK 1,051.25 -1.1 PFC 409.2 -1.4 MUTHOOTFIN 1,627.05 -2.37 Auto
Stock CMP Change (%) M&M 2,017.70 0.75 HEROMOTOCO 4,547.60 0.54 EICHERMOT 4,020.50 0.15 MARUTI 12,535.35 -0.25 TATAMOTORS 1,008.75 -0.28 TATAMTRDVR 668.8 -0.39 ASHOKLEY 172.15 -0.49 TVSMOTOR 2,073.70 -0.62 BAJAJ-AUTO 9,066.35 -0.87 Real estate
Stock CMP Change (%) MAHLIFE 654 4.67 PHOENIXLTD 2,889.50 1.37 LODHA 1,153.65 1.35 OBEROIRLTY 1,555.45 1.21 DLF 898.25 1.13 PRESTIGE 1,319.15 1.13 GODREJPROP 2,431.20 0.9 BRIGADE 958 0.02 SUNTECK 438 -0.32 SOBHA 1,533.00 -1.95 Consumer durables
Stock CMP Change (%) WHIRLPOOL 1,356.40 1.4 DIXON 7,730.00 1.33 VGUARD 342.65 1.05 CROMPTON 282.45 0.64 VOLTAS 1,224.90 0.57 KALYANKJIL 433.4 0.57 KAJARIACER 1,246.35 0.5 BLUESTARCO 1,353.60 0.39 TITAN 3,788.05 0.14 HAVELLS 1,538.00 -0.05 CERA 7,480.00 -0.21 AMBER 3,743.40 -0.34 RAJESHEXPO 306.6 -0.47 BATAINDIA 1,356.95 -1.09 CENTURYPLY 660.65 -1.12 Catch latest stock market updates here
RBI MPC Meeting April 2024 Live Update: Will RBI Governor-led rate-setting panel revise GDP, retail inflation projections today?
According to the Zee Business poll of economists, while three out of every five participants expect the MPC to revise its GDP forecast today, none of them see it tweaking the inflation forecast.
RBI MPC Meeting April 2024 Live Update: Three out of every five economists polled by Zee Business poll expect just one rate cut in 2024
According to the Zee Business poll of economist, the MPC is unlikely to revise the cash reserve ratio in the April review.
The decision is due in about 40 minutes from now, at 10 am today.
What is CRR?
One among the several monetary policy tools at the RBI's disposal, the CRR is a key reserve ratio that determines the percentage of total bank deposits that commercial banks are required to keep parked with the central bank in the form of liquid cash.
This cash basically serves as a safety net to ensure that banks have enough funds to meet customer withdrawals and to maintain financial stability.
RBI MPC Meeting April 2024 Live Update: Three out of every five economists polled by Zee Business poll expect just one rate cut in 2024
The remaining two, out of the economists polled by Zee Business, expect two reductions during the calendar year.
RBI MPC Meeting April 2024 Live Update: Zee Business poll suggests no reduction in repo rate today
All of the economists polled by Zee Business expect the RBI Governor Shaktikanta Das-led MPC to announce the status quo on the benchmark interest rate.
Also, they expect the first reduction in the repo rate to occur only in the October review.
GIFT Nifty futures indicate a lower start ahead on Dalal Street today
RBI MPC Meeting April 2024 Live Update: Did you know Nifty50 has rallied 797 pts (3.7%) since the February policy review?
Domestic equity benchmark Nifty50 has gained 796.7 points, or 3.7 per cent, since the February 8 announcements.
The Nifty Bank, whose 12 constituents include SBI, HDFC Bank and ICICI Bank, has surged 3,048.8 points, or 6.8 per cent, during this period.
For the S&P BSE Sensex, the gain in the almost two-month period stands at 2,799.2 points, or 3.9 per cent.
RBI MPC Meeting April 2024 Live Update: Ahead of today's decision, take a look at the current policy rates
- Policy repo rate: 6.50%
- Standing deposit facility rate: 6.25%
- Marginal standing facility rate: 6.75%
- Bank rate: 6.75%
- Fixed reverse repo Rate: 3.35%
Reserve ratios
- Cash reserve ratio (CRR): 4.50%
- Statutory liquidity ratio (SLR): 18.00%
RBI MPC Meeting April 2024 Live Update: What is the repo rate and how does it impact you?
The repo rate is a crucial tool used by central banks to regulate the economy and control inflation. This crucial financial tool plays a significant role in regulating the economy and controlling inflation.
The repo rate—short for repurchase rate—is the rate at which the central bank of a country (like the Reserve Bank of India) lends money to commercial banks.
Its impact ripples through various sectors, ultimately shaping the financial well-being of a nation.
How does the repo rate impact you?
The repo rate directly impacts the interest rates offered to customers by commercial banks.RBI MPC Meeting April 2024 Live Update: Most economists expect RBI's rate-setting panel to maintain ‘withdrawal of accommodation’ policy stance
The MPC's current policy stance indicates that the central bank will resort to reducing the supply of money in the system to continue to curb curb inflation.
RBI MPC Meeting April 2024 Live Update: Ahead of the key rate decision at 10 am today, take a look at the schedule of MPC's six bi-monthly meetings in FY25
- April 3-5, 2024
- June 5-7, 2024
- August 6-8, 2024
- October 7-9, 2024
- December 4-6, 2024
- February 5-7, 2025
RBI MPC Meeting April 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 since February 2023, 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 February 8, 2023 6.50% 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 Meeting April 2024 Live Update: Can you expect the RBI's rate-setting panel to tweat GDP forecast at 10 am on Friday?
Out of the economists polled by Zee Business, 60 per cent expect a change in the central bank's GDP forecast for the year.
RBI MPC Meeting April 2024 Live Update: Can you expect a cash reserve ratio (CRR) reduction cut on April 5?
None of the economists polled by Zee Business expects a cut in the cash reserve ratio on April 5.
What is the cash reserve ratio (CRR)?
The cash reserve ratio (CRR) is a crucial monetary policy tool used by central banks to regulate the economy. It refers to the percentage of total bank deposits that commercial banks are required to keep with the central bank in the form of liquid cash.
Why is the CRR important?
The CRR serves as a safety net to ensure that banks have enough funds to meet customer withdrawals and maintain financial stability.
It plays a vital role in controlling inflation and money supply in the economy.
It is by adjusting the CRR that central banks can influence the lending capacity of commercial banks.
RBI MPC Meeting April 2024 Live Update: When and where to watch Reserve Bank of India Governor's speech live on April 5
The Reserve Bank of India Governor Shaktikanta Das-headed bi-monthly Monetary Policy Committee is due to reveal the outcome of the April 3-5 review at 10 am on Friday, April 5.
RBI MPC Meeting April 2024 Live Update: Ahead of MPC's first bi-monthly review of FY25, SBI Capital Markets expects no rate cut before August
SBI Capital Markets (SBI Caps) expects the first reduction in the repo rate only after August. In the April edition of its 'Ecocapsule' report, SBI Caps—a wholly-owned subsidiary and the investment banking arm of SBI—has pegged domestic consumer inflation to average 4.7 per cent in FY25 with evenly balanced risks.
RBI MPC Meeting April 2024 Live Update: What time is the MPC policy statement due on Friday, April 5?
The outcome of the first bi-monthly review of monetary policy by the MPC is due at 10 am on Friday.
Later on, the top brass of the RBI, led by Governor Shaktikanta Das, will address a customary press conference at noon.
RBI MPC Meeting April 2024 Live Update: How many repo rate cuts can you expect this year?
While three out of every five economists polled by Zee Business expect only one cut in the repo rate in 2024, the remaining two anticipate two instances of reduction in the calendar year.
RBI MPC Meeting April 2024 Live Update: When do economists expect the first rate cut in the current cycle of monetary policy?
All of the economists polled by Zee Business expect a reduction in the repo rate, the key interest rate at which the RBI lends money to commercial banks, in the fourth bi-monthly review of FY25, due in October.
RBI MPC Meeting April 2024 Live Update: Can you expect a repo rate cut on April 5 MPC policy statement?
All of the economists polled by Zee Business expect no change in the repo rate in the April 5 statement.
RBI MPC April 2024 Meeting LIVE Update: Welcome to Zeebiz.com's blog on the RBI's first bi-monthly policy statement of FY25
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 April 3-5 review?
This is going to be the first bi-monthly review by the RBI Governor Shaktikanta Das-headed Monetary Policy Committee.
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