10:30 (IST) Aug 08
Rupee remained largely range-bound in August, says RBI Governor Shaktikanta Das
10:20 (IST) Aug 08
In Q3 substantial advantage of base effect may pull down overall inflation: RBI Governor Shaktikanta Das
10:19 (IST) Aug 08
Food component of inflation remains stubborn, says RBI Governor
10:14 (IST) Aug 08
RBI monetary policy meet 2024 live updates: RBI kept its key interest rate unchanged
The monetary policy committee (MPC) last changed rates in February 2023, when the policy rate was raised to 6.50%. The annual retail inflation rate rose for the first time in five months in June, climbing above 5% on the back of a jump in food prices.
10:11 (IST) Aug 08
Inflation broadly on declining trajectory, says RBI Governor Shaktikanta Das.
10:08 (IST) Aug 08
There is not likely to be any impact on loan EMIs as the Reserve Bank of India's monetary policy committee had decided to keep the repo rate unchanged at 6.5%.By a majority of 4-2, the MPC decided to keep the repo rate unchained at 6.5%, governor Shaktikanta Das said in a presser on Thursday. This is the ninth time in a row that the MPC has kept repo rate unchanged at 6.5%.
The MPC has maintained the repo rate at 6.5 percent since February 2023.The MPC's primary responsibility is to set the policy repo rate to achieve the inflation target of 4 percent while considering the objective of economic growth. The current MPC is set to undergo significant changes this year.
The terms of the three external members will conclude on October 6 and cannot be renewed.
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09:26 (IST) Aug 08
RBI monetary policy meet 2024 live updates: Large stocks are back in demand; Bloomberg report
While a surge of domestic money has kept the market relatively insulated from the global turmoil, fears of a deeper US economic slowdown are prompting some brokerages, including Jefferies, to favor larger companies. Foreign investors have remained cautious in India, and the recent tax hikes on equities, along with efforts to limit retail activity in stock derivatives, may dampen retail sentiment. Jefferies is particularly bullish on staples like Hindustan Unilever, tobacco major ITC, large private banks, and two-wheeler producers Eicher and TVS.
08:55 (IST) Aug 08
RBI monetary policy meet 2024 live updates: What the RBI meeting means for rate-sensitive stocks; Bloomberg report
One of the most anticipated policy reviews of the RBI will put rate-sensitive stocks like developer DLF, Bajaj Auto and Bajaj Finance in spotlight Thursday. A potential shift in policy stance, or even a rate cut, could be seen as a boost for these sectors. However, if the central bank fuels expectations of lower rates in the future, banks might gain from their bond investments in the short term but could face increased margin pressures in the long run.
08:20 (IST) Aug 08
RBI monetary policy meet 2024 live updates: Wall Street slides as bond yields rise and dollar strengthens
Wall Street equity indexes ended lower on Wednesday following a volatile session, with the S&P 500 and Nasdaq slipping after a weak US 10-year Treasury auction. The Dow Jones dropped 0.60%, the S&P 500 fell 0.77%, and the Nasdaq decreased by 1.05%. Meanwhile, Treasury yields increased, with the 10-year yield rising to 3.958% and the 30-year to 4.2579%. The dollar strengthened against the yen following Bank of Japan deputy governor Shinichi Uchida's comments on interest rates. Oil prices climbed due to a large draw in US crude stockpiles and potential Middle East tensions, despite concerns over weak demand in China. The yen weakened, and the dollar index gained 0.2%.
08:15 (IST) Aug 08
RBI monetary policy meet 2024 live updates: Ahead of RBI policy announcement Sensex closed at 900 points on Wednesday
The Indian stock market saw a strong rebound on Wednesday, recovering from a historic plunge earlier in the week. The Sensex surged by 900 points, ending at 79,468.01, while the Nifty rose by 304.95 points to 24,297.50. Key drivers included a broad-based buying spree across sectors, especially Oil & Gas, Metals, and Pharma. The Indian Rupee fell to a record low against the US Dollar, influenced by global market conditions and geopolitical tensions. Gold and silver prices slightly rebounded, and recent changes in tax regulations are expected to benefit the real estate sector.
07:34 (IST) Aug 08
RBI monetary policy meet 2024 live updates: Debate on excluding food prices from RBI's inflation target
Chief economic adviser, V Anantha Nageswaran, has proposed excluding food prices from the Reserve Bank of India’s (RBI) inflation target, igniting a debate on potential policy adjustments. This suggestion comes amid concerns that food prices, which are highly volatile and often influenced by factors beyond monetary policy control, distort the overall inflation measure.
Nageswaran argues that excluding food prices could provide a clearer picture of core inflation, allowing the RBI to set more effective monetary policies. This perspective is gaining traction within economic circles, as some policymakers and economists believe that focusing on core inflation could lead to more stable and predictable policy decisions.
However, critics argue that food prices significantly impact household budgets and should remain a part of the inflation target to ensure comprehensive economic stability. As the RBI's monetary policy committee (MPC) nears the end of its term, this debate is expected to influence discussions on future inflation targeting frameworks and policy directions.
07:34 (IST) Aug 08
RBI monetary policy meet 2024 live updates: RBI's ongoing efforts to manage liquidity
The Reserve Bank of India (RBI) is actively managing excess liquidity in the banking system through strategic bond sales and reverse repo operations. In recent weeks, the RBI has resorted to selling bonds to absorb surplus liquidity, which has reached a one-year high due to the central bank's foreign exchange market interventions and post-election government spending.
To address this, the RBI has conducted variable reverse repos to withdraw shorter-duration liquidity, ensuring stability in the financial system. This proactive approach is aimed at preventing the weighted average call rate from diverging too far from the repo rate, a move that helps maintain market equilibrium.
Despite not having a stated preference for a specific liquidity surplus or deficit level, the central bank's recent activities highlight its commitment to balancing liquidity conditions. This ongoing effort is crucial as India navigates its recent inclusion in the JPMorgan bond index, which has added another layer of complexity to liquidity management.
07:34 (IST) Aug 08
RBI monetary policy meet 2024 live updates: Growing calls for rate cuts within Monetary Policy Committee
There is increasing pressure within the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) for rate cuts. In the June meeting, external MPC members Jayanth Varma and Ashima Goyal voted for reducing rates, expressing concerns that the current tight monetary policy could negatively impact economic growth. Another external member also highlighted the potential risks of maintaining high rates, suggesting that a more flexible approach could be beneficial.
Additionally, V Anantha Nageswaran, India’s chief economic adviser, recently argued that the RBI’s inflation target should exclude food prices, as these are not directly influenced by interest rates. This perspective aligns with calls for a policy adjustment to support economic stability.
These internal and external pressures suggest a growing consensus for a more dovish policy stance, aiming to balance inflation control with the need to foster economic growth amidst global economic uncertainties.
07:33 (IST) Aug 08
RBI monetary policy meet 2024 live updates: Impact of bond index inclusion on liquidity
India's inclusion in JPMorgan's bond index has raised questions about the RBI's liquidity management. Recent bond sales by the central bank have surprised investors and contributed to market volatility. As the banking system experiences high liquidity due to forex interventions and government spending, the RBI's actions, such as bond sales and reverse repos, aim to balance liquidity conditions and stabilise market rates.
07:33 (IST) Aug 08
RBI monetary policy meet 2024 live updates: RBI expected to hold rates steady; markets hope for rate cut signals
The Reserve Bank of India (RBI) is anticipated to maintain its current interest rate of 6.50% for the ninth consecutive meeting on Thursday, according to a Reuters poll of 59 economists. Despite this, investors are hopeful for a more dovish tone that could hint at a potential rate cut in October. Amid global economic concerns, a shift to a neutral policy stance may be possible, influenced by the recent global market turmoil and the anticipated rate cut by the U.S. Federal Reserve in September. However, a rise in retail inflation to over 5% in June might delay any immediate policy changes. With India's economic growth forecasted at 7.2% for the fiscal year, the RBI's decision will be closely watched, particularly for its impact on the rupee and bond yields.
