Monetary policy committee of the rbi, Bank

Chennai, June 8 The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) will not revise downwards the repo rate anytime soon and that too not ahead of the US Federal Reserve, said economists.They were reacting to RBI's Monetary Policy Committee (MPC) to maintain status quo as regards to the repo rate that is 6.5 per cent."Amid a volatile global economic scenario and lingering risks to domestic inflation, it is prudent that the RBI has followed a wait-and-watch strategy," Rajani Sinha, Chief Economist, CARE Ratings, told .While the RBI has marginally lowered the CPI inflation projection for FY24 to 5.1 per cent, it has emphasized on the inflationary risks. The policy stance on 'withdrawal of accommodation' is reflective of RBI's guarded approach towards inflation as it reiterated that inflation remains above target and remaining within the tolerance band is not enough, Sinha said."Going ahead, with the domestic growth holding up well, we have raised our GDP growth projection to 6.5 per cent for FY24 (from previous projection of 6.1 per cent)," Sinha remarked."With concerns on growth front abating and CPI inflation likely to remain above the 4 per cent target, we expect a status quo on the policy rates in 2023," Sinha added.RBI Governor Shaktikanta Das has softly recognised that more financial stability risks may unfold with the unprecedented pace of tightening in global policy rates, said Madhavi Arora, Lead Economist, Emkay Global Financial Services said.According to Arora, in this fast evolving world, it is unlikely the RBI would be too adventurous on either side of rate actions, and is unlikely to precede the Federal Reserve in reversing its course of rate hikes in the future."We do not see any rate reversal by the RBI in FY24," Arora added.While the MPC's decision to maintain the status quo was expected, Aalesh Avlani Founder, Credit Wise Capital said a slightly aggressive stance of reducing the rate would have been appreciated to fuel growth.After a cumulative hike of 250 basis points (bps) last fiscal, the central bank has moved to the sidelines to see their impact on growth and inflation play out this fiscal, Dharmakirti Joshi, Chief Economist, CRISIL said.The central bank remains vigilant of global volatility. Even as central banks in major advanced economies have reduced the pace of rate hikes, inflation rules above their target and faces upside risks from tight labour market conditions."We expect RBI to maintain status quo on rates this fiscal and initiate cuts in the January-March quarter of 2024," Joshi said.Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Monetary Policy Committee Of The RbiFOLLOW

Monetary policy committee of the rbi, Latest News

A shocking video has surfaced showing a 30-year-old bank employee experiencing a heart attack at his office, highlighting the ... ...

ATM operators nationwide are advocating for an increase in the interchange fee for cash withdrawals and have made appeals ... ...

Banks are gearing up for an extended holiday period this week, with consecutive closures set to take place across ... ...

New Delhi, July 5 The Reserve Bank of India (RBI) on Wednesday issued a draft circular on issuance ... ...

Ankara, June 23 The Turkish central bank has implemented a significant interest rate hike, marking the first increase ... ...

London, June 22 The Bank of England has raised interest rates by a half point to 5 per ... ...

Abu Dhabi [UAE], June 10 (ANI/WAM): Bank investments in UAE hit AED 548.5 billion by the end of March, ... ...

Chennai, June 8 The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) will not revise downwards the ... ...