RBI Monetary Policy Updates: CPI Inflation Projected at 4.5% in FY23; Real GDP Growth at 7.8%

RBI Monetary Policy LIVE Updates: RBI governor Shaktikanta will announce the decision of RBI MPC shortly. Will RBI hike repo rate as a part of liquidity normalisation? Check here for latest updates

By: Business Desk

Last Updated: February 10, 2022, 20:39 IST

Shaktikanta Das, rbi, rbi policy, rbi monetary policy
RBI Governor Shaktikanta Das will announce the decisions of RBI MPC on February 10. (File photo)

The Reserve Bank of India (RBI) on Thursday kept the key lending rates repo rate and reverse repo rate unchanged for the tenth time in a row. While the repo rate was maintained at 4 per cent the reverse repo rate was unchanged at 3.35 per cent. While announcing the decision, RBI governor has mentioned that the decision was taken as continued policy support was warranted to support economic growth.

“The MPC expectedly kept the key rates unchanged unanimously and reiterated its accommodative stance both on rates and liquidity. However, Prof Jayanth Varma’s dissent on continuation of accommodative stance for foreseeable Read More

Feb 10, 2022 17:12 IST

RBI Monetary Policy Live Updates: How Increasing e-RUPI Limit will Help

Jaya Vaidhyanathan, CEO, BCT Digital

Enhancing the e-RUPI system, as announced in today’s RBI policy meet is a welcome move. The government-sponsored, secure “gift card” program was launched with good intentions but with limited scope (One time use only and cap of Rs. 10,000). Given that an important aim of this system is efficient direct benefit transfers to citizens, the payment system needed to be more expansive. With a higher limit and allowing multiple transactions (say, Rs 1,200 transaction at a hospital, followed by Rs 20,000 fertilizer subsidy and Rs 15,000 e-vehicle subsidy), today’s announcement hints at a larger role of the e-RUPI system in the economy. This will (i) reduce leakage of funds in welfare schemes, and (ii) help banks gather customer data that can be used for financial inclusion as well as cross-selling of products to existing customers.

Feb 10, 2022 17:00 IST

RBI Monetary Policy Live Updates: M Govinda Rao, Chief Economic Advisor, Brickwork Ratings Says

“The decision to hold policy rates by the MPC is on expected lines. The RBI’s continued focus is on reviving growth reinforced by potential downside risks to economic activity from the highly contagious Omicron variant. Improving inflation outlook provides comfort for the RBI to continue with the current policy stance. The MPC was of the view that continued policy support is warranted for a sustained, durable and broad-based recovery. On the GDP guidance, the RBI forecasts 7.8 per cent growth for FY23, which is slightly lower than the 8 per cent to 8.5 per cent GDP forecast made by the Economic Survey 2021-22. This, in part, maybe due to the base effect arising from the revision of GDP for 2020-21 from (-) 7.1 per cent to (-) 6.6 per cent.  The growth concerns arising from the uncertainties related to Omicron and global spillovers, has warranted the RBI to maintain the policy rate stable to sustain the economic recovery. It has sounded a note of caution, as the persistent increase in international commodity prices, the surge in the volatility of global financial markets, and global supply bottlenecks can exacerbate risks to the outlook. On the inflation front, the RBI sees prices softening from the current levels and forecasts an 4.5 per cent inflation for FY23. The expectation of inflation moving within the MPC’s upper range provides scope for the continuation of the accommodative policy stance. However, the forecast on inflation is highly dependent on normal monsoon and stability in international commodity prices including other domestic factors like demand and supply situation”.

Feb 10, 2022 16:54 IST

RBI Monetary Policy Live Updates: Impact on Real Estate

Y. Viswanatha Gowd, MD & CEO of LIC Housing Finance said

“As the housing sales across major cities are at an all-time high, the unchanged policy rates will continue to invoke a sense of optimism for home and property buyers. The policy rates have remained unchanged for the 10th time in a row and we expect the low home loan interest rate regime to continue for some more time. All this augurs well for the sector and will boost sentiments further. ”

Feb 10, 2022 16:52 IST

RBI Monetary Policy Live Updates: Ridhima Kansal, Director, Rosemoore Says

“The RBI’s decision to maintain repo and reverse repo rates at current levels indicates their growth-oriented stance. While inflation continues to be on the higher side and the Indian economy has caught up on an upward growth trajectory after the pandemic-driven crisis, such an outlook by RBI indicates their positive and healthy outlook on the immediate future of the country’s economy. No wonder, the resilience of the common man has helped and the central bank seconds it with its positive outlook reflected in the status quo of the monetary policy.”

Feb 10, 2022 16:51 IST

RBI Monetary Policy Live Updates: Shishir Baijal, Chairman and Managing Director, Knight Frank India Says

“At this critical juncture when the economy is just recovering from the instability caused by the third wave of pandemic, RBI’s decision to keep the policy interest rate unchanged is a welcome move. There are still lingering growth concerns in the economy and RBI’s accommodative monetary policy stance will be supportive of growth. The Housing market has been showing a healthy bounce back from the Covid-19 crisis and low interest rates will help in improving affordability and sustaining the growth momentum. The sustenance of housing market recovery will have a strong multiplier effect on overall economic growth”

Feb 10, 2022 12:17 IST

RBI Monetary Policy Live Updates: Know What Expert Says

Rajee, chief ratings officer, Brickwork Ratings 

RBI continued its dovish stance and remained accommodative by reiterating that despite the economic recovery and aggregate demand gaining traction and improving inflation outlook, continued policy support is warranted to support domestic growth, which is the highest priority

Feb 10, 2022 11:51 IST

RBI Monetary Policy Live Updates: How will RBI MPC Announcement Impact You?

Atul Goel, managing director, Goel Ganga Group and president (Elect.), NAREDCO Pune

The RBI objective must be attached to the growth as the past two years were significantly stressful for the country. The RBI policy review might be raising the reverse repo rate as per the suggestions of monetary policy committee, however the important part is to keep the price variation within check for the consumers. The expectation are around 15 to 20 basis points. But overall it would be the RBI way of handling the inflation limits is to be seen rather than the actual conditions prevailing in the country.

Feb 10, 2022 11:46 IST

RBI Monetary Policy Live Updates: Expert's View on MPC Announcement

 Siddharth Maurya, market expert 

RBI has maintained an accommodative stance and kept the repo rates unchanged. However, as inflation is under control, RBI could have thought to lower the rates by 25 to 50 basis points. In the last 2 years, RBI has been maintaining an accommodative stance and slashed rates, which has been instrumental in setting the stage for higher economic growth. RBI should take a cue from the past actions and continue with further measures to support spending and spurred growth.

Feb 10, 2022 11:24 IST

RBI Monetary Policy Live Updates: What Market Experts Say

Sujan Hajra, chief economist and executive director, Anand Rathi Shares & Stock Brokers.

“The RBI remained more concerned on growth versus inflation and thereby maintained all the policy rate unchanged. The monetary policy stance also remains accommodative. We think that the RBI had at least the space to do a symbolic 15 bps reverse repo hike so as to signal rate normalisation, commitment to be at the top of the inflationary situation and also keep the Indian monetary policy in alignment with the global trend. We expect the rate hike to start in the next MPC meeting. The stance of monetary policy, however, is likely to continue as accommodative.”

Feb 10, 2022 10:47 IST

RBI Monetary Policy Live Updates: e-Rupee Prepaid Digital Voucher Cap Enhanced

Reserve Bank of India (RBI) has enhanced of cap under e-Rupee prepaid digital vouchers. The present cap of ₹10,000 will be increased to ₹1 lakh per voucher and to be used more than once, governor Shaktikanta Das said on Thursday.

Feb 10, 2022 10:36 IST

RBI Monetary Policy Live Updates: Key Announcements

Variable rate repo operations of varying tenors will henceforth be conducted as and when warranted. Second, variable rate repos and variable rate reverse repos of 14-day tenors will operate as the main liquidity management tool. Third, these operations will be aided by fine turning operations. Fourth, with effect from March 1, the fixed rate reverse repo and Marginal Standing Facility will only be available from 5:30-11:59 PM on all days: Governor Shaktikanta Das

Feb 10, 2022 10:30 IST

RBI Monetary Policy Live Updates: On Inflation

RBI maintains CPI inflation forecast of 5.3 per cent for FY22. RBI predicts FY23 CPI inflation at 4.5 per cent. RBI forecasts Q1FY23 CPI at 4.9 per cent, Q2 at 5 percent, Q3 at 4 per cent and Q4 at 4.2 per cent.

Feb 10, 2022 10:26 IST

RBI Monetary Policy Live Updates: GDP Projection for FY23

GDP growth projected at 7.8 percent for FY23. It is projected at 7.2 per cent for Q1, 7 per cent for Q2, 4.3 percent for Q3, and 4.5 per cent for Q4: Governor Shaktikanta Das

Feb 10, 2022 10:23 IST

RBI Monetary Policy Live Updates: On Inflation

CPI inflation expected to moderate closer to 4.00 percent target in second half of FY23 and provide room for monetary policy to remain ‘accommodative’: RBI Governor Shaktikanta Das

Feb 10, 2022 10:20 IST

RBI Monetary Policy Live Updates: Limited Disruption to Economic Activity, Says Das

We have made effort to limit disruption to economic activity. While CPI edged higher, it is along expected lines. Core inflation remains elevated and headline inflation is expected to peak in Q4FY22, and turn moderate in H2GY23. Continued policy support is warranted for durable, broad-based recovery: RBI Governor Shaktikanta Das

Feb 10, 2022 10:15 IST

RBI Monetary Policy Live Updates: GDP for FY23 Projected at 7.8%

Reserve Bank of India (RBI) governor Shaktikanta Das on Tuesday projected India’s economic growth projection for the financial year 2023 (FY23) at 7.8 per cent

Feb 10, 2022 10:14 IST

RBI Monetary Policy Live Updates: Key Announcements

-RBI retains accommodative stance -Repo rate remains unchanged at 4 per cent -Reverse Repo Rate remains unchanged 3.35 per cent -Inflation has risen but remains on expected lines -Inflation likely to peak in Q4FY22

Feb 10, 2022 10:14 IST

RBI Monetary Policy Live Updates: Continued Support Needed for Durable Recovery

Taking into consideration the outlook for inflation and growth. MPC was of the view that continued policy support was warranted for a durable and broad based recovery: Das

Feb 10, 2022 10:11 IST

RBI Monetary Policy Live Updates: RBI Maintained 'Accommodative' Stance

The MPC has voted unanimously to keep policy repo rate unchanged at 4 per cent. ‘Accommodative’ stance to continue as long as needed. MSF rate and bank rate remain unchanged. Reverse repo rate also remains unchanged, said RBI governor Shaktikanta Das

Feb 10, 2022 10:10 IST

RBI Monetary Policy Live Updates: Repo Rate, Reverse Repo Rate Unchanged

RBI kept repo rate and reverse repo rate unchanged in February monetary policy

future continues to keep MPC in split state,” said  Madhavi Arora, lead economist, Emkay Global Financial Services.

RBI monetary policy committee (MPC) projected India’s economic growth projection for the financial year 2023 (FY23) at 7.8 per cent. RBI forecasts FY23 CPI inflation at 4.5 per cent.

The six-member monetary policy committee has started the deliberations on February 8, a day after the previously scheduled date in view of the public holiday declared by the Maharashtra government to mourn the death of legendary singer Lata Mangeshkar. This will be the first RBI MPC announcements after Budget 2022. Investors will keenly the follow the decisions of RBI MPC to get a forward guidance on growth and inflation going forward.

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