Aligning market realities with policy goals

Aligning market realities with policy goals

Mumbai: When Reserve Bank of India (RBI) Governor Shaktikanta Das began Friday by saying that the monetary policy review was not just a ‘status quo’ one but would ‘reveal and give an idea of our approach not only to monetary policy but also to various aspects of monetary policy,’ few knew what was in store. … Read more

Monetary tightening behind us; liquidity to remain key focus for RBI

Monetary tightening behind us; liquidity to remain key focus for RBI

After the RBI MPC paused monetary tightening in April 2023, although attempting to reinforce that the pivot is way off, the markets are bracing for the onset of the rate cuts sooner rather than later. The softer than expected inflation (particularly the recent moderation seen in the seasonally adjusted core inflation), above 1% real policy … Read more

Time has come to review monetary policy objectives: RBI deputy governor Michael Patra

Time has come to review monetary policy objectives: RBI deputy governor Michael Patra

Monetary policy on its own cannot influence economic growth but can only support it by creating congenial factors, Reserve Bank of India (RBI) deputy governor Michael Patra said Thursday. Formulating monetary policy has become more challenging in the current environment because of data lags and also frequent reviews, Patra said. “On the basis of data … Read more

Nifty may slip to 16,800 levels and Sensex to 56K; use dips to buy in these 5 sectors: Ravi Singh, ShareIndia

Nifty may slip to 16,800 levels and Sensex to 56K; use dips to buy in these 5 sectors: Ravi Singh, ShareIndia

“Interest rate hikes by the global central banks have strengthened fears of recession while inflation still remains high in the global economy,” said Ravi Singh, Vice President and Head of Research, ShareIndia. In an interview with ETMarkets.com, Singh said he is highly bullish on the auto sector and his top picks are , , and … Read more

Surprise tightening in Asia ups pressure on dovish central banks

Surprise tightening in Asia ups pressure on dovish central banks

Central banks in Asia that remained dovish even in the face of soaring inflation may see their resolve tested after a surprise tightening by peers in the region leaves their currencies vulnerable to sell-off, according to economists. Thailand, which has kept its key rate at a record low to bolster the economy’s recovery, is seeing … Read more

RBI keeps rates unchanged; FY23 GDP growth seen at 7.8%

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The Monetary Policy Committee has, unanimously, opted to maintain the repo rate at 4.00%. With a 5:1 majority, the committee also opted to maintain an accommodative stance in order to support economic growth and recovery, RBI Governor Shaktikanta Das announced on Thursday. This is the tenth consecutive time that the rate has remained unchanged. The … Read more

RBI likely to keep key policy rate unchanged, say experts

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Mumbai: Amid global scare due to new coronavirus variant Omicron, the RBI is likely to maintain status quo in its upcoming monetary policy and wait for a more opportune time to calibrate benchmark interest rate to promote growth without sacrificing the main objective of containing inflation. The Reserve Bank Governor-headed Monetary Policy Committee (MPC) is … Read more

Nomura sees 40 bps reverse repo hike as CPI seen rising, growth recovering despite Omicron

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NEW DELHI: India’s GDP growth in July-September reflects a rapid rebound in the economy from the lows of the deadly second wave of the COVID-19 pandemic, but looking ahead the outlook is mixed as improving mobility may be offset by supply-side bottlenecks and signs of weakness in demand for mass consumption goods, Nomura wrote in … Read more

Gilt yields, OIS rates suggest RBI may hike reverse repo rate in December

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NEW DELHI: A common feature of the weeks before the last two monetary policy statements by the Reserve Bank of India is an increase in communication –both official and unofficial- by central bank officials including Governor Shaktikanta Das. There are exactly three weeks to give before the Monetary Policy Committee’s next statement on Dec 8 … Read more

Making money in 2022 may not be easy

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So far, the Reserve Bank of India has kept the benchmark lending rate unchanged at a record low of 4.0%. But that may change soon. Synopsis Across-the-board inflationary pressures, record low interest rates, easy money all mean that in the near term, the impact has been muted. As central banks across the world look to … Read more