RBI monetary policy meeting LIVE updates: RBI MPC holds repo rate at 6.5%

RBI Governor Das completes his statement on the monetary policy decision.

RBI to remain watchful and proactive to recognise risks: Governor Das

FLDG will issue guidelines on default loss for digital lending

A regulatory framework for FLDG (First Loss Default Guarantee) model is expected to be issued as a part of the second round of digital lending norms, and is likely to be more enabling than prohibitive, according to industry sources.

Indian shares hold gains after RBI keeps rates unchanged

Indian shares held gains on Thursday, with the benchmarks closing in on all-time highs, after the Reserve Bank of India (RBI) maintained key policy rates, said Reuters. The blue-chip Nifty 50 index was up 0.21 per cent at 18,765.30 as of 10:19 a.m. IST, while the benchmark S&P BSE Sensex rose 0.22 per cent to 63,286.91. Read more.

The last leg of the journey is the toughest: Das

we need to move to our primary target of 4 per cent inflation: Das

Good progress made in containing inflation: Das

India’s growth has bounced back and headline CPI inflation is easing

Ru pay debit, credit cards are gaining acceptance internationally: Das

RBI allows banks to issue Rupay prepaid forex cards, Das says

Propose to ease membership criteria of Bharat bill payments system: Das

PPI issuers to issue E-rupee vouchers: RBI Governor says

Permitted non-bank payment issuers can issue e-rupee vouchers.

Decided to rationalise licensing framework under FEMA: RBI’s Das

Urban Co-op Banks: timeframe for achieving 75 per cent priority sector lending target extended by two more years to 2026: Das

PSL targets for primary & UCBs – Glide path upto March 2024 was earlier provided for glidepath for PSL norms; time frame extended up to March 2026, says Das

We will issue norms on technical write-off for all banks: Das

Scheduled commercial banks can set their own borrowing limits in the call money markets for interbank settlements: RBI Governor

This excludes small finance banks.

Forex reserves are comfortable at $595.1 billion as of June 2, 2023: Das

Forex reserves are well above $600 billion including forward assets, he added.

Rupee has been stable since January 2023: RBI’s Das in his statement

April preliminary data suggests that FDI flows have improved: RBI’s Das

Net FPI inflows stand at $8.4 billion on June 6, against net outflows of $14.1 billion in FY22 and 5.9 billion in FY23: Das

Indian is taking firm strides to reach $1 trillion of exports by 2030: RBI announcement

Services exports grew faster than merchandise exports in FY23, Governor Das added.

CAD is expected to have moderated in the March quarter: Das

CAD should remain manageable in FY24 as well, he added.

Moderation in system liquidity was visible in the money market rates: Shaktikanta Das

Gilts yields are suggesting an anchoring of long-term market inflation targets: RBI’s Das

Trade deficit has narrowed in recent months, says Das

We will ensure orderly completion of government borrowing program in FY24: Das

RBI will remain nimble in liquidity management: Das in his statement

Response to VRRR options has been fairly cautious from banks as per our experience: Das

The VRRR auction have been conducted due to a build-up of surplus liquidity, he added.

Auctions have been undertaken to address the skewed liquidity in the system: RBI’s Das

Skewed liquidiuty within banking system: RBI’s Das

Rs. 1.7 lakh crore liquidity in April May- shrinkage in liquidity due to maturity of TLTRO: Das

Liquidity surplus has expanded due to RBI’s forex operations. Data has suggested that there are skewed liwuidity conditions within the banking system. Pick up in government spending resulting in higher liquidity: Das

Monetary policy actions have given desired results, says Das

Fall in inflation has given room to pause rates in this meet: RBI’s Das

Headline inflation remains above target; being within the tolerance band is not enough, says Das

‘Need to maintain an Arjuna eye on inflation,’ he adds.

Anchoring of expectations is underway and our MPC action is yielding desired results, adds Das

Subsequent incoming data suggests that pressures remain during H2FY24 which need to be watched and surveyed appropriately: Das

There are upside pressures to inflation during the period October to March: Das

Uncertainties remain on monsoon, geopolitical headwinds, and international commodity prices, and volatility in global markets pose upside risks to inflation: Das

Headline CPI is at 4.6% in April-June: RBI Gov Das

Q3 CPI at 5.4%, and Q4 CPI at 5.2%, he adds

Good news: Near term inflation outlook is more favourable than last MPC meeting

Recent rabi harvest was immune to adverse weather conditions: Das in his announcement

Headwinds from weak external demand, geo-political tensions pose downside risks to outlook: Das

Monetary policy tightening and supply side measures contributed to softening of CPI inflation to 4.7% in April: Das

Headline CPI has slowed in food, fuel, and core inflation

Given healthy balance sheet of banks and corporates, conditions are favourable for capex: RBI Das

Conditions are favourable for capex cycle to gain momentum: RBI Gov

Higher rabi output, expected normal monsoon, should support household consumption, says Das

Merchandise imports contracted vis as vis exports: Das

PMI is showing a sustained expansion in May: RBI statement

It is at a 31-month high

Survey points towards higher investment intentions by manufacturing companies: RBI’s Das

Fixed investment by manufacturing companies increased in FY23 after contracting in FY22

Data suggests there is buoyancy in investment activity: Shaktikanta Das

Production and import of Capital goods suggests buoyancy in capital investments

PV sales, CC outstanding post double-digit growth: Das

Domestic demand conditions sre supportive of growth, says Das

Urban demand is resilient, indicated by high frequency indicators; rural demand is on a revival path

India’s real GDP recorded 7.2% growth in FY23, stronger than earlier estimates: RBI Gov Das

We will ensure that inflation is aligned with the growth target: Governor Das

MPC to take steps to keep CPI expectations anchored, Das says

System liquidity may rise on deposit of Rs. 2,000 notes

Average system liquidity in surplus

Full effect of rate hikes to be seen in coming months, Das says

MPC to remain vigilant on evolving situation: Das in his statement

Policy rate hikes are still working through the system: Governor Das

Monsoon outlook and impact on El Nino remain uncertain: Das

Headline inflation above the target and is expected to remain so according to our assessment; above 4% for FY23-24: Das

Pace of monetary policy tightening has slowed across the world, says Das

MPC has recognised that global economic activity pace will slow down in 2023

Pace of monetary tightening slowed in recent months; uncertainties remain

5/6 members remain focused on withdrawal of accommodation stand: RBI Das

SDF remains at 6.25% and MSF and Bank rates at 6.75%: Das

RBI continued to preserve price and stability: Shaktikanta Das

Fiscal consolidation is also ongoing

Financial stability concerns are persisting in advanced economies, says RBI Governor Das

Central banks around the world are on high alert: RBI’s Das

Indian economy, financial sector stands out as strong and resilient among global headwinds: Gov. Das

Gilt yields, call rate open up

Watch Live RBI monetary policy statement by Governor Shaktikanta Das

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Rupee falls 7 paise to 82.59 against US dollar in early trade ahead of RBI policy decision: PTI

RBI’s monetary policy decision, commentary to guide bond yields

The 10-year benchmark 7.26 per cent 2033 bond yield is expected to be in the 6.96-6.99 per cent range until the monetary policy decision due at 10:00 a.m, after closing at 6.98 per cent in the previous session, a trader with a private bank said.

The market has already factored in rate action, but the crucial triggers will be the guidance and comments on the inflation path, the trader added.

Read more here.

Stock market today: Flat opening seen for Nifty, Sensex

Domestic markets are likely to open on a flat-to-positive note on Thursday. Analysts expect the market to remain range-bound in the early part of the trading, as the RBI is set to announce its decision on rates today. All are expecting a status qua stance and a sober comments on economic outlook.

Real estate stocks ended in the green when RBI ‘paused’ rate hike

The real estate sector heaved a collective sigh of relief as the Reserve Bank of India in its previous meeting took its foot off the rate hike pedal, providing a breather to the sector which has been fearfully tracking interest rate movements over the past one year.

RBI’s MPC will continue to be in pause mode in June meeting: SBI report

State Bank of India’s economic research department (ERD) expects one more pause by the Reserve Bank of India’s Monetary Policy Committee (MPC) in view of the recent Consumer Price Index (CPI) and Core CPI numbers.

Banks cut rates on FDs of up to 3 years on easing liquidity

In an initial indication of easing in the interest rate scenario, larger banks have started cutting rates on short-term fixed deposits (FDs) of up to 3 years driven by better systemic liquidity conditions and softer short-term money market rates.

Most lenders are expecting the Reserve Bank of India to pause on rates in its upcoming bi-monthly monetary policy this week after the CPI inflation print for April came below the central bank’s upper threshold of 6 per cent.

RBI previously kept repo rate unchanged at 6.5%

The six-member rate-setting monetary policy committee (MPC) of RBI voted unanimously to hold the policy repo rate at 6.50 per cent.

The MPC, in its first meeting of FY24, also voted by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation remains within the target.

Highlights of RBI’s previous monetary policy statement

Read the highlights of the RBI’s previous MPC meeting ​​here​​.