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Oct 6, 2023 3:52 PM

RBI MPC Meeting Live Updates: RBI projects CPI inflation for Q2 at 6.4%

RBI has projected the CPI inflation for Q2 at 6.4%, Q3 at 5.6%, and Q4 at 5.2%. CPI inflation for the first quarter of 2024-25 is projected at 5.2%.

Oct 6, 2023 3:31 PM

RBI MPC Meeting Live Updates: Steady expansion seen in urban consumption, rural consumption showing revival, says Governor

"Looking ahead, domestic demand conditions are likely to benefit from sustained buoyancy in services, consumer and business optimism, government's continued thrust on capex, healthy balance sheets of banks and corporates, and supply chain normalisation," Governor Das said.

Oct 6, 2023 3:16 PM

RBI MPC Meeting Live Updates: RBI keeps GDP growth projection unchanged at 6.5% for 2023-24

“Real GDP growth for the current financial year that is 2023-24 is projected at 6.5% with quarter two at 6.5%; quarter three at 6% and quarter four at 5.7%. The risks are evenly balanced. Real GDP growth for the first quarter of next financial year that is ’24-25 is projected at 6.6%,” Governor Das said as part of his bi-monthly policy announcement.

Oct 6, 2023 3:01 PM

RBI MPC Meeting Live Updates: RBI's MPC keeps its retail inflation forecast at 5.4%

The Reserve Bank of India's Monetary Policy Committee (MPC) has kept its retail inflation forecast to 5.4% for the financial year ending March 2024.

"Headline inflation could remain high for a longer than estimated time," RBI governor Shaktikanta Das said.

However, RBI's own estimates show that inflation may be at 5.2% at the end of June 2024.

Oct 6, 2023 2:40 PM

Ten Reasons Why RBI Believes Indian Economy Will Grow Faster Than World Bank Estimates

RBI governor Shaktikanta Das is taking heart from the rise in car sales, cement production and airline traffic, among other reasons. Read more for his detailed justification for his optimism.

Oct 6, 2023 2:24 PM

RBI MPC Meeting Live Updates: Some Key Points From Guv Shaktikanta Das' Speech Earlier Today

- ICRR impounded about Rs 1.1 lakh crore from the banking system; being discontinued in a phased manner from Oct 7.

- Elevated levels of MSF borrowings amidst substantial funds parked under the SDF is symptomatic of skewed liquidity distribution in the banking system

banks have preferred to place funds under the overnight SDF instead of offering them in the main 14-day VRRR ops.

- Desirable that banks having surplus funds explore lending opportunities in the inter-bank call market rather than passively parking funds in the SDF at relatively less attractive rates.

- It is a turning pitch and we will play our shots carefully.

- Going forward, while remaining nimble, we may have to consider OMO-sales to manage liquidity consistent with stance of monetary policy.

- Timing and quantum of such operations will depend on the evolving liquidity conditions.

Oct 6, 2023 1:55 PM

RBI MPC Meeting: Bajaj Allianz Life's Sampath ReddyOn RBI MPC Announcements

"The RBI maintained the status quo on policy rates and stance, aligning with the market expectations. The headline CPI projection for FY24 remains unchanged at 5.4%, despite uncertainties around production due to the lower kharif sowing, low reservoir levels, and volatile global food and energy prices. The RBI governor reiterated the intention to bring inflation to a level of 4% on a durable basis. In line with its monetary policy stance, the RBI may need to consider OMO-sales to manage liquidity as necessary," says Sampath Reddy, Chief Investment Officer, Bajaj Allianz Life.

Oct 6, 2023 1:38 PM

RBI MPC Meeting: Deputy Governor On System Level Advisory For Banks NBFCs

Oct 6, 2023 1:27 PM

RBI MPC Meeting: LKP Securities' Ajit Kabi On RBI MPC Announcements

"RBI kept the policy rate unchanged at 6.5%. This is the fourth consecutive time the RBI maintained the status quo. Additionally, the retail inflation is projected at 5.4% (unchanged) for FY24. RBI has raised the limit of gold loan given by urban cooperative banks to 4 lakhs from 2 lakhs earlier. To manage liquidity, RBI may enter into OMO sales," Ajit Kabi, Banking analyst at LKP Securities.

Oct 6, 2023 1:19 PM

Ten Reasons Why RBI Believes Indian Economy Will Grow Faster Than World Bank Estimates

RBI governor Shaktikanta Das is taking heart from the rise in car sales, cement production and airline traffic, among other reasons. Read more for his detailed justification for his optimism.

Oct 6, 2023 1:07 PM

Have Not Changed Our Approach To Fintechs With Respect To Bank Licences: RBI's M Rajeshwar Rao

- We have given a no-objection (NOC) for one of the NBFCs to merger with North East Small Fin Bank

- We do carry out a fit & proper assessment and take a call accordingly

Oct 6, 2023 12:51 PM

RBI MPC Meeting Live Updates: Balance Sheet Of Financial Sector Especially Banks & NBFCs Continue To Be Robust: Shaktikanta Das

- GNPA figures of banking sector for June 2023 look even better, similarly for NBFCs.

- We have to be mindful of what can going forward pose a challenge, become a future risk.

- In certain segments of retail credit, we saw high growth which we have flagged.

Oct 6, 2023 12:40 PM

RBI MPC Meeting Live Updates: OMOs Will Be Done Through An Auction Process And Duly Notified: Shaktikanta Das

- Our liquidity management has nothing to do with global bond yields.

- Our liquidity management will be consistent with our monetary stance in context of overall domestic liquidity.

- Our domestic bond yields are reacting to domestic factors, not international factors.

- Bond yields going up in USA do normally impact Ems, but India’s forex reserves are sizable which gives comfort and RBI intervenes in the market as needed.

- “We will use one stone to kill one bird”. We use one instrument for one objective, which may have collateral impact elsewhere.

- Our data shows that remittances are holding up.

Oct 6, 2023 12:35 PM

RBI MPC Meeting Live Updates: Change Of Stance To Neutral Will Be On The Table When Situation Becomes So, Says Guv Shaktikanta Das

Other important key points:

- We raised repo rates by 250 basis points but it has not fully transmitted to bank lending and deposit rates

- At the moment, the stance remains withdrawal of accommodation

- Liquidity is not in deficit; went into a deficit mode over past 2-3 weeks mainly due to advance tax and GST payments

- Overall liquidity is still in surplus

- Have got Rs 3.43 lakh crore of 2000 rupee notes so far

- Substantial amount of liquidity has built up due to withdrawal of 2000 banknotes

- Govt spending picking up will also add a lot of liquidity in the system

- Currency in circulation will go up during festive season which will drain some liquidity

- There will be active liquidity management; we will remain watchful

- OMO sales in one tool which we thought may be required and hence we mentioned it in the statement

Oct 6, 2023 12:28 PM

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