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RBI Monetary Policy LIVE: Controlling Inflation a Priority Over Growth, Says Shaktikanta Das

RBI Monetary Policy LIVE UPDATES: RBI Governor Shaktikanta Das is all set to announced the decision of the bi-monthly monetary policy on Friday, April 8. All eyes will be on interest rates, stance, inflation projection

News18.com | April 08, 2022, 13:30 IST
MPC meet

Reserve Bank of India (RBI) Governor Shaktikanta Das announced that the RBI has kept borrowing casts at a record low for an eleventh straight meeting. The MPC voted to keep the benchmark repurchase rate at 4 per cent and retained its accommodative stance. It also said that the country is facing fresh challenges from war in Ukraine and covid lockdowns in China which risk exacerbating a global supply squeeze and price pressures on Friday, April Read More

Apr 08, 2022 13:30 IST

RBI MPC LIVE Updates: Government Should Try to Control Inflation

Ridhima Kansal, Director, Rosemoore

The step by RBI to keep the repo rate unchanged is a prudent initiative, as it will enable banks to continue offering credit at low rates, thereby helping retail consumption. With receding cases, expansive vaccination drives, and a healthy economic outlook, India’s retail sector looks upbeat in FY23. Meanwhile, the government should try to control inflation, because if not rein, it can soften demand.

Apr 08, 2022 13:25 IST

RBI MPC LIVE Updates: Hikes inflation and cuts growth projection; Retains accommodative stance

Amnish Aggarwal, Director- Research at Prabhudas Lilladher

RBI has maintained repo and reverse repo rates along with an accommodative monetary policy to support growth in an uncertain environment of rising inflation and crude prices, geopolitical tensions, and a resurgence of Covid in China. Taking a cautious stance, RBI cut its GDP projection for FY23 from 7.8 per cent to 7.2 per cent and hiked inflation from 4.5 per cent to 5.7 per cent led by Q1 at 6.3 per cent and H2 at 5.4-5.1 per cent. RBI’s stance seems to change mainly due to rising inflation and global uncertainties even as we expect an uptick in rural income from high Agri commodity prices and gradual demand revival in coming months.

Apr 08, 2022 13:21 IST

RBI MPC LIVE Updates: Home Loan Rates to Remain in Lower Band

Subhash Goel, chairman & managing director, Goel Ganga Developments

RBI’s effort to keep the repo rate unchanged and maintain an accommodative stance is a welcoming step. This will continue to keep the home loan rates in the lower band, thereby fostering growth and pushing the market in a positive direction. Lowered home loan rates will also help renewed investor interest in the sector, as real estate is a prudent option for risk-averse investors. Meanwhile, the governing agencies should try to control inflation, otherwise, raw material prices will jump upwards and affect the industry.

Apr 08, 2022 13:07 IST

RBI MPC LIVE Updates: Courageous Call By The RBI

Vivek Iyer- Partner and leader , Financial services risk, Grant Thornton Bharat

The RBI policy on keeping the repo rate unchanged reflects the need to balance growth vis -a- vis inflation. Having said this, the RBI does not downplay the inflation risks and understands that the monetary policy will be less accommodative. It would, however, be worthwhile to note that this is a very courageous call by the RBI, especially when everyone around the world is increasing interest rates.

Apr 08, 2022 12:57 IST

RBI MPC LIVE Updates: RBI Continues Its Exemplary Act of Balancing

Rajni Thakur, Chief Economist, RBL Bank

RBI continues on its exemplary act of balancing the contrasting pulls of its key objectives viz; price stability, growth support, and easy financial conditions. While the key policy rates remain unchanged, restoration of the LAF corridor to 25 bps below and above the Repo rate, has effectively pushed up the short-term rates by 40-50 bps. Similarly, while the monetary policy stance continues to be ‘accommodative’, the accompanying statement mentions its focus on ‘withdrawal of accommodation’ to match up with rising price pressures. Combined with substantial upwards revision of inflation forecasts for the current fiscal year to 5.7 per cent, RBI has, to a large extent, re-aligned its policy to evolving market conditions and also signalled rate hikes over the year. Given the current macro-dynamics, MPC announcements were a tight rope walk that has delivered on re-calibrating growth-inflation projections, signalling impending hikes and still buying time to hike lending rates. With multiple risks on both inflation and growth trajectory in the current fiscal year, we expect two reluctant rate hikes, most likely starting in second quarter. Combined with gradual and calibrated liquidity withdrawal, we nevertheless, expect financing conditions to still remain easy over the full year, to support economic activities.

Apr 08, 2022 12:46 IST

RBI MPC LIVE Updates: RBI Will Adopt Wholesale Mode First in Pilot Project for CBDCs

In implementing CBDCs, RBI may start with wholesale mode first, followed by retail mode, RBI Deputy Governor said.

Apr 08, 2022 12:43 IST

RBI MPC LIVE Updates: Have received HDFC-HDFC Bank Merger Proposal And Will Examine

“I don’t want to comment on individual cases, but we have received a proposal for the HDFC-HDFC Bank merger. We will examine them. When we take a decision, we will inform you. Beyond that, it would not be right to say what will be our approach in this case,” says RBI Governor Shaktikanta Das

Apr 08, 2022 12:41 IST

RBI MPC LIVE Updates: Cardless Withdrawal From ATMs Through UPI Soon

Cardless withdrawal from ATMs through UPI will be introduced in the coming months, says Deputy RBI Governor.

Apr 08, 2022 12:31 IST

RBI MPC LIVE Updates: Central Bank is Not Behind the Curve

RBI Guv says the central bank is not behind the curve. We have stopped G-sec last year while advanced economies still reducing bond purchases. “Outright OMOs have also stopped. We have been watchful on rates but war was something that started on February 24 and it has introduced a new element in the scheme of things,” said Das.

Apr 08, 2022 12:23 IST

RBI MPC LIVE Updates: Liquidity Depends on Capital Flows, Government Borrowings

On being asked about liquidity normalisation, RBI governor said liquidity conditions depends on various factors such as capital flows, government borrowings, and FDI flows. RBI will take an action depending on how situation evolves.

Apr 08, 2022 12:16 IST

RBI MPC LIVE Updates: Withdrawal of Liquidity to be Multi-Year

Withdrawal of liquidity to be multi-year; can be two years, can be three years. It will depend on the evolving situation. Tectonic shifts have happened globally since February policy. The stance remains accommodative with a focus on withdrawal of accommodation. The situation is dynamic and fast-changing – actions will be tailor-made according to it, said RBI Governor.

Apr 08, 2022 12:07 IST

RBI MPC LIVE Updates: RBI on Revised Inflation Figures

The press conference of the Reserve Bank of India’s monetary policy committee begins. Primarily, inflation figures have been revised upwards due to war-related factors, says Das. In the sequence of priorities, we have now put inflation before growth. Time is appropriate to prioritise inflation ahead of growth, he added.

Apr 08, 2022 12:02 IST

RBI Decisions to Help Economic Recovery to Pre-Covid Levels: Colliers India

Ramesh Nair, CEO, Colliers India and Managing Director, Market Development, Asia

This will greatly help the economy recover to pre-Covid-19 levels at a time when the economy is steadily gaining ground. The geopolitical scenario on the global front and other challenges have led the RBI to lower its growth forecast to 7.2 per cent from 7.8 per cent for FY2022-23. However, the Indian economy appears to be well placed to withstand the shock supported by its forex reserves and stable financial sector. From a real estate perspective, the unchanged repo rate will continue to provide elbowroom to homebuyers, since home loan rates are at a record low.  The housing sector saw a revival in 2021 and the continued low home loan rates can further propel homebuyers’ sentiments. The RBI hiked its reverse repo rate, which was expected due to inflationary tendencies seen in the economy.

Apr 08, 2022 11:54 IST

RBI MPC LIVE Updates: Cut in GDP Rates, Increase in Inflation Could Mean Tightening Measures in Future

Dhiraj Relli, MD & CEO, HDFC Securities

The latest RBI policy reflects hesitant hints to turn hawkish but sound dovish. The aggressive cut in GDP estimates for FY23 and sharp increase in FY23 inflation projections could mean some tightening measures going forward, reinforced by the change in stance to focus on withdrawal of accommodation. The current geopolitical events, supply chain issues and commodity price inflation are tying the hands of RBI and forcing it to gradually turn hawkish although it would like to continue with its pro growth outlook. 10 Year Gsec yields has risen to 7 per cent reflecting the concern of the street on the large borrowing program amidst the rising rates scenario.

Apr 08, 2022 11:44 IST

RBI MPC LIVE Updates: RBI Being Cautiously Optimistic, Says Analyst

Manoj Trivedi, co-founder of Jama Wealth, SEBI Registered Investment Advisor

RBI is being cautiously optimistic while remaining cognizant of the challenges ahead. LAC is a positive in the long run, as Liquidity will be dynamically managed. There is no attempt to aggressively contain inflation now at the cost of growth. The growth estimate is conservative. RBI is not only sensitive to market needs but has been explicitly committed to do what it takes to support the Indian economy, without caring for “rule books”.

Apr 08, 2022 11:28 IST

RBI MPC LIVE Updates: RBI's Shaktikanta Das Concludes Meeting with Gandhi Quote

RBI governor Shaktikanta Das concludes the monetary policy statement with Mahatma Gandhi’s quote on faith. “It is faith that cheers us through stormy seas, faith that moves mountains, and faith that jumps across the ocean.”

Apr 08, 2022 11:25 IST

RBI Decision to Help Improve Sentiments in Real Estate Sector

“RBI’s move to keep the repo rate unchanged and hike reverse repo rate by 40 bps contain inflation and maintain liquidity will help in keeping the sentiment optimistic. For the real estate sector, the pandemic followed by the current global political crisis is a silver lining. Being a tangible asset and safe-haven investment, people will continue to divert their funds to real estate. Residential real estate will witness a further impetus due to overall uncertainty leading people to return to focus on basic requirements like spacious living spaces. Investors will be closely watching the geopolitical conditions to further estimate growth and evaluate investment avenues,” said Ram Raheja, Director at S Raheja Relaty.

Apr 08, 2022 11:04 IST

RBI MPC LIVE Updates: Welcome RBI’s Stance To Maintain Repo Rate, says Shishir Baijal, Knight Frank India

“Despite the disruptions from geo- political challenges as well as inflationary pressures, the RBI recognises the need to maintain economic growth momentum. We welcome the RBI’s continued accommodative stance and status quo on REPO rate. For the real estate sector, low-interest rates for a long period of time has served as a key catalyst for the resurgence of demand. The status quo on REPO rates will help maintain the current demand levels as the interest rates for both homebuyers and developers are likely to be maintained by financial institutions,” said Shishir Baijal, Knight Frank India

Apr 08, 2022 10:54 IST

RBI MPC LIVE Updates: RBI enhances held-to-maturity limit on SLR

RBI enhances the held-to-maturity limit on SLR from 22 per cent to 23 per cent of NDTL till Mar 31, 2023. HTM limits to be restored to 19.5 per cent in a phased manner starting from the quarter-ending June 2023.

Apr 08, 2022 10:44 IST

RBI MPC LIVE Updates: RBI on Current Account Deficit

RBI sees the current account deficit at sustainable levels and forex reserves at $606.5 billion, said Shaktikanta Das

8.

The RBI revised downwards India’s growth projection for the current fiscal (FY2022-23) to 7.2 per cent from its earlier estimate of 7.8 per cent on the back of hardening of prices of commodities and tightening of interest rates globally. The RBI has assumed crude oil prices at $100 per barrel for 2022-23 to arrive at the growth estimation. It also revised its inflation forecast upwards for FY23 to 5.7 per cent.

In the last 10 meetings, the MPC left the interest rate unchanged and maintained an accommodative monetary policy stance. The repo rate was last cut on 22 May 2020 on the back covid-induced nationwide lockdown. Since then, the rate remains at a historic low of 4 per cent. The Reserve Bank’s Monetary Policy Committee (MPC) will meet six times this financial year. The next bi-monthly monetary policy of 2022-23 will be held during June 6-8.

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