RBI MPC December Review HIGHLIGHTS: MPC votes 4:2 to leave repo rate unchanged, cuts GDP forecast; stance stays at 'neutral'
RBI MPC December Review HIGHLIGHTS: RBI Governor Shaktikanta Das announced a status quo on the repo rate on Friday, December 6, as he presented the key decisions taken by the Monetary Policy Committee in its three-day, bi-monthly meeting. This is the last scheduled bi-monthly policy review of the calendar year.
Das said the MPC voted 4:2 to leave the repo rate unchanged while unanimously deciding to continue with its 'neutral' stance of policy.
The December 4-6 policy review comes at a time when two macroeconomic data sets are showing alarming signs: the country's GDP growth has slowed to a 7-quarter low while consumer inflation has worsened to cross the upper end of the RBI's tolerance band.
Follow this space to catch highlights of the December MPC review:
RBI MPC December Review HIGHLIGHTS: RBI Governor Shaktikanta Das announced a status quo on the repo rate on Friday, December 6, as he presented the key decisions taken by the Monetary Policy Committee in its three-day, bi-monthly meeting. This is the last scheduled bi-monthly policy review of the calendar year.
Das said the MPC voted 4:2 to leave the repo rate unchanged while unanimously deciding to continue with its 'neutral' stance of policy.
The December 4-6 policy review comes at a time when two macroeconomic data sets are showing alarming signs: the country's GDP growth has slowed to a 7-quarter low while consumer inflation has worsened to cross the upper end of the RBI's tolerance band.
Follow this space to catch highlights of the December MPC review:
Latest Updates
RBI MPC December Review: CRR cut a welcome move, says Shriram AMC's Deepak Ramaraju
Deepak Ramaraju of Shriram AMC highlights that the RBI has remained overall accommodative to boost growth and maintain price stability.
The CRR cut and the bottoming out of the slowdown will augur well with equity markets in the medium term, says the fund manager.
"The CRR cut is a welcome move and will lead to improved credit growth due to increased liquidity in the system," Ramaraju adds.
RBI MPC Policy Review Update: How rate-sensitive stocks fare at this hour
Consumer durable stocks
| Stock | Change (%) | CMP |
| BLUESTARCO | 4.76 | 2,059.60 |
| CENTURYPLY | 2.64 | 784.4 |
| KALYANKJIL | 2.5 | 738.7 |
| TITAN | 1.28 | 3,484.95 |
| BATAINDIA | 0.89 | 1,452.50 |
| DIXON | 0.6 | 17,402.20 |
| VOLTAS | 0.54 | 1,676.90 |
| AMBER | 0.52 | 5,849.60 |
| WHIRLPOOL | 0.49 | 1,901.65 |
| HAVELLS | 0.28 | 1,751.65 |
| RAJESHEXPO | 0.28 | 236.38 |
| VGUARD | 0.09 | 426.85 |
| CERA | 0.05 | 7,677.00 |
| CROMPTON | -0.35 | 403.8 |
| KAJARIACER | -0.71 | 1,195.95 |
RBI MPC Policy Review Update: How rate-sensitive stocks fare at this hour
Realty stocks
| Stock | Change (%) | CMP |
| BRIGADE | 1.53 | 1,323.05 |
| RAYMOND | 0.39 | 1,624.70 |
| PRESTIGE | 0.35 | 1,740.00 |
| DLF | 0.24 | 852.25 |
| MAHLIFE | 0.17 | 508.75 |
| OBEROIRLTY | -0.07 | 2,128.80 |
| LODHA | -0.27 | 1,365.95 |
| GODREJPROP | -0.52 | 2,845.75 |
| SOBHA | -1.32 | 1,648.50 |
| PHOENIXLTD | -3.12 | 1,748.70 |
Catch latest updates on rate-sensitive stocks here
RBI MPC Policy Review Update: How rate-sensitive stocks fare at this hour
Auto stocks
| Stock | Change (%) | CMP |
| BAJAJ-AUTO | 2.12 | 9,080.55 |
| MARUTI | 0.66 | 11,255.85 |
| EICHERMOT | 0.6 | 4,866.70 |
| M&M | 0.51 | 3,087.15 |
| TVSMOTOR | 0.35 | 2,521.00 |
| ASHOKLEY | -0.19 | 232.15 |
| TATAMOTORS | -0.25 | 790.55 |
| HEROMOTOCO | -0.46 | 4,623.10 |
RBI MPC Policy Review Update: How rate-sensitive stocks fare at this hour
Banking, financial services and insurance stocks
| Stock | Change (%) | CMP |
| AXISBANK | 2.01 | 1,189.90 |
| MUTHOOTFIN | 0.99 | 1,956.75 |
| BAJFINANCE | 0.96 | 6,916.45 |
| LICHSGFIN | 0.85 | 644.15 |
| ICICIGI | 0.66 | 1,945.50 |
| SBILIFE | 0.19 | 1,434.55 |
| ICICIPRULI | 0.13 | 675.6 |
| SHRIRAMFIN | 0.1 | 3,129.50 |
| SBIN | 0.02 | 865.6 |
| ICICIBANK | -0.07 | 1,335.50 |
| BAJAJFINSV | -0.26 | 1,639.80 |
| HDFCBANK | -0.37 | 1,858.90 |
| HDFCLIFE | -0.93 | 637.2 |
| CHOLAFIN | -1.27 | 1,275.00 |
RBI MPC Policy Review: Debt market expected to stabilise in next few days as traders positions get offloaded, says Tata Asset Management's Murthy Nagarajan
Murthy Nagarajan of Tata Asset Management highlights that the debt market has taken no rate cut or change in stance negatively, reflected in a rise in the 10-year yield from 7.72 to 7.75.
Until the market stabilises in the next few days, the 10-year yield is expected to trade in the range of 6.72 to 6.78 levels, says Nagarajan.
The RBI may have to cut more than 50 basis points in the coming months as the rate cut cycle is getting delayed and GDP growth is trending towards 6 per cent levels, he adds.
RBI MPC December Review: Repo rate & CRR decisions in accordance with expectations, says analyst
Parijat Agrawal of Union AMC expects a 25-basis-point reduction in the repo rate in the February review.
The moderation in growth and the persistence of headline inflation are concerning factors that may necessitate timely policy support, and addressing the challenge of stimulating growth is critical and should not be overlooked, adds Agrawal.
RBI MPC December Review: When can you expect first repo rate cut in current cycle?
Dhawal Dalal of Edelweiss MF believes that the first rate cut may potentially be in February.
"Leaning on prudence and practicality, the MPC kept the policy rate unchanged amid higher food inflation but cut the CRR to 4.0 per cent to ease the banking system liquidity deficit," says Dalal.
RBI MPC Policy Review: Minutes of today's policy meet to be released on December 20
Minutes of RBI policy meetings offer details on the thought process behind the votes of various MPC members.
The central bank is set to release the minutes of today's meeting on December 20.
RBI MPC Policy Review: MPC votes unanimously to maintain 'neutral' stance
All six members vote for continuing with the neutral stance of monetary policy and to remain unambiguously focused on a durable alignment of inflation with the target.
RBI MPC Policy Review: Growing dissent in MPC as members vote 4:2 to hold repo rate at 6.5%
Here's how various members have voted:
For keeping repo rate unchanged
- Saugata Bhattacharya
- Rajiv Ranjan
- Michael Debabrata Patra
- Shaktikanta Das
For lowering repo rate by 25 bps
- Nagesh Kumar
- Ram Singh
RBI MPC Review LIVE: Full-year GDP growth projection revised lower by 60 bps citing evenly-balanced risks
Take a look at the RBI's quarter-wise GDP growth projections for the coming months:
- Q3 FY25: 6.8%
- Q4 FY25: 7.2%
- Q1 FY26: 6.9%
- Q2 FY26: 7.3%
RBI MPC December Review LIVE Update: Cash reserve ratio stands revised to 4% from 4.5%
The RBI Governor points out that the 50-bps cut will lead to Rs 1.16 lakh crore additional liquidity for banks.
Shaktikanta Das also mentions surplus liquidity in October and November driven by higher government spending.
RBI MPC Policy LIVE Update: BREAKING--RBI raises Q3 CPI inflation forecast to 5.7% from 4.8%
The RBI Governor acknowledges that consumer inflation breached the central bank's target range in October.
However, he expresses confidence that inflation will likely ease in the final quarter of the current financial year.
The MPC remains unambiguously focused on a durable alignment of inflation with the target while supporting growth, according to the RBI.