Moderate rate hike gives leeway to make data-driven changes in monetary policy: Shaktikanta Das

Moderate rate hike gives leeway to make data-driven changes in monetary policy: Shaktikanta Das

Mumbai: Reserve Bank of India governor Shaktikanta Das has said the moderate hike in the policy rate — first since the cycle began last May — gives the central bank the leeway to make appropriate data-driven changes in the policy going forward. The RBI governor stopped short of making any forward looking statement on the … Read more

Banks and NBFCs in position to withstand the worst macro economic stress: RBI

Banks and NBFCs in position to withstand the worst macro economic stress: RBI

India‘s financial system, including banks and NBFCs are in a position to withstand even the worst of macro economic stress emanating from global spillovers and the central bank will focus on management of shocks and building the buffers of financial system, the RBI said in its half yearly Financial Stability Report. The central bank’s stress … Read more

RBI rate hike as expected but was a bit hawkish on the margin

RBI rate hike as expected but was a bit hawkish on the margin

RBI’s Monetary Policy Committee (MPC) hiked the benchmark policy rate (repo rate) by 35 bps to 6.25%. 5 out of 6 MPC members voted in favour of hiking the Repo rate by 35 bps while 1 member voted against the repo rate hike. The marginal standing facility (MSF) rate and the Standing Deposit Facility (SDF) … Read more

Monetary Policy Committee calls for caution on future rate hikes

Monetary Policy Committee calls for caution on future rate hikes

Arguments for ‘wait and watch’ on future interest rate increases are gathering pace among members of the Monetary Policy Committee as past increases ripple through the system, but Reserve Bank of India insiders are weighing the consequences of financial markets turbulence arising from monetary tightening in developed markets. The Reserve Bank raised the benchmark policy … Read more

View: RBI strikes a right balance between growth and inflation

View: RBI strikes a right balance between growth and inflation

Governor Shaktikanta Das announced a 50-bps hike in policy repo rate to 5.9% from 5.4% during the monetary policy committee’s meeting on 30th September 2022 and maintained withdrawal of accommodation. With this, the rates have gone up 190-bps cumulatively since the start of the current calendar year. The rate hike was decided by a majority … Read more

Households still expect inflation to be in double-digit over a one-year time horizon

Households still expect inflation to be in double-digit over a one-year time horizon

Even as the central bank expects inflation to be within the central bank’s upper tolerance band at 6 percent by early next financial year, households still expect it to continue to remain at double digit level over a one year time horizon, the central bank’s household expectation survey found. Households’ median inflation perceptions for the … Read more

Cryptos will lead to financial instability, dollarization of the economy, says RBI Governor

Cryptos will lead to financial instability, dollarization of the economy, says RBI Governor

RBI Governor Shaktikanta Das has lashed out at crypto assets once again. In an interview with ET Now, Das reiterated his concerns over the crypto assets. The RBI chief said, “cryptos may lead to dollarization of the developing countries like India as the prices of crypto tokens are mostly denominated in dollars.” He said that … Read more

RBI has zero tolerance for volatile, bumpy moves in rupee: Shaktikanta Das

RBI has zero tolerance for volatile, bumpy moves in rupee: Shaktikanta Das

India’s central bank has zero tolerance for volatile and bumpy movements in the rupee and will continue to engage with the foreign exchange market to ensure the rupee finds its level, its chief Shaktikanta Das said on Friday. The rupee has been hitting a series of record lows in recent weeks and has broken past … 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

Inflation forecast will drive rate action, says RBI governor Shaktikanta Das

Inflation forecast will drive rate action, says RBI governor Shaktikanta Das

The Reserve Bank of India is committed to containing inflation while keeping growth in mind, governor Shaktikanta Das told MC Govardhana Rangan and Bodhisatva Ganguli in an interview, during which he also spoke about borrowing, crypto and the reform agenda. Edited excerpts: You had said that the May 4 interest rate hike was the beginning … Read more