RBI Monetary Policy 2024 Live Updates: Will RBI tweak Inflation target today?

RBI Monetary Policy 2024 Live Updates: Will RBI tweak Inflation target today?

09:04:54 IST

RBI MPC Meeting Live: Market cues indicate flat-to-positive start for markets ahead of announcement

Indian equity markets poised for a flat-to-positive opening on February 8, with the GIFT Nifty mildly up in morning trading. GIFT Nifty on NSE IFSC rose by 0.14%, or 30 points. Market sentiment cautious ahead of RBI MPC meeting, anticipated to maintain unchanged key policy rate for the sixth consecutive time. Read on

08:56:53 IST

RBI MPC Meeting Live:  Shaktikanta Das’ address at 10 am, post-meeting conference at 12 pm

08:50:41 IST

RBI MPC Meeting Live:  Moneycontrol Poll: Bankers, economists expect MPC to leave repo rate unchanged

08:42:34 IST

RBI MPC Meeting Live:  Will RBI tweak Inflation target?

In the last policy review, the RBI retained the retail inflation target for the fiscal year unchanged at 5.4 percent, despite uneven monsoon showers and as outlook on food prices remain on edge amid a spike in global crude oil prices. The December inflation number was 5.7 percent lower than market expectations. More importantly, the core inflation-non food, non-oil part of the inflation—has been easing. Will the RBI lower the inflation target further? Last month, the RBI Governor also said inflation will ease further from the current levels. –Dinesh Unnikrishnan, Editor–Banking & Finance.

08:37:08 IST

RBI MPC Meeting Live:  Withdrawal of liquidity amid persistent inflation concerns

According to the Reserve Bank of India, approximately Rs 92,100 crore have been withdrawn in four auctions since Friday. This coincides with the overnight borrowing rate of banks falling below the benchmark repo rate. This trend suggests that the RBI is unlikely to ease its stringent monetary policy stance, especially with inflation persisting significantly above its 4% target.

08:26:24 IST

RBI MPC Meeting Live: FinMin to engage in dialogue regarding RBI’s stance on priority sector lending for EVs

The RBI hasn’t consented to adding electric vehicles (EVs) to the priority sector lending (PSL) list, said Vivek Joshi, finance ministry official, in an interview with Moneycontrol. Joshi aims to engage with the RBI on this matter. Read more

08:13:27 IST

RBI MPC Meeting Live:  Economist’s thoughts on the current account deficit

IDFC Bank economist Gaura Sen told Moneycontrol, “The current account deficit in FY24, is expected to reduce to 1.2 percent of GDP versus a 2 percent deficit in FY23, led by a reduction in the trade deficit as commodity prices eased and supply chains normalised.

Services surplus and transfers have risen, reflecting the strong growth of India’s services exports and strong growth conditions in the US. The current account reflects the gap between savings and investments in the economy. The reduction in Current Account Deficit in FY24 indicates that overall gross savings in the economy as percent of GDP has likely risen in FY24.” Read more

08:03:25 IST

RBI MPC Meeting Live:  Will RBI announce more support to the liquidity today?

Even when the RBI keeps the interest rates steady, it can launch an indirect rate action in the banking system through liquidity measures. Money market experts expect the central bank to maintain a tight liquidity stance this time. Also, they believe the RBI will continue extending the liquidity support to the banks whenever needed. In the last few months, liquidity in the banking system remained tight and the RBI had provided adequate support whenever needed with the various variable rate repo auctions. Usually that support was provided whenever there were major outflows from the banking system and overnight rates shot above the Marginal Standing Facility (MSF) rate. Will RBI announce more support to the liquidity today? Let’s wait and watch.

– Dinesh Unnikrishnan, Editor (Banking & Finance)

07:59:41 IST

RBI MPC Meeting Live:  Any hint of a rate cut from Guv Das could ignite a fresh rally: Experts

The RBI is anticipated to maintain the repo rate at 6.5% during the February MPC meeting, according to analysts. While markets have priced in this expectation, any hints of future rate cuts from Governor Shaktikanta Das could spark a market rally. An overwhelming majority of economists also anticipate the RBI to maintain its withdrawal stance from accommodation. Elevated headline inflation prompts caution despite a drop in core inflation. The US Federal Reserve signals a cautious approach to rate cuts, eyeing a 2% inflation target. Read on

07:47:09 IST

RBI MPC Meeting Live:  What’s in it for aam aadmi?

RBI policy announcements aren’t only about jargon and cryptic comments from central bankers. The rate actions announced will have a certain impact on every average Indian who might be connected to the formal banking system either as a borrower or depositor. Banks typically follow RBI policy clues and pass on the rate actions to the end customer by tweaking loan or deposit rates. But today any such action is unlikely. The MPC is largely expected to follow the status quo in key rates and wait till April-June before taking any rate action based on the inflation trajectory.

– Dinesh Unnikrishnan, Editor (Banking & Finance)

07:44:44 IST

RBI MPC Meeting Live:  Balancing growth, inflation, and market dynamics

With robust growth and inflation yet to align with targets, RBI has room to wait, assessing factors like monsoon, Red Sea tensions, and US Fed actions before rate cuts. However, rapid market shifts could prompt early monetary easing. RBI should avoid being caught in market volatility, potentially pivoting to a neutral stance in Q2 FY25 and initiating a shallow rate-cut cycle from October 2024, aiming for a cumulative 75 bps reduction in FY25.

07:32:45 IST

RBI MPC Meeting Live:  A look beyond February 2024