As the MPC signals normalisation, a key challenge for the RBI would be to ensure that even as sovereign yields rise, the move is orderly
The meeting of the interest rate setting body, which was scheduled to start on Monday, will now begin on February 8
Conducting monetary policy will become more challenging
15-40 bps raise likely in MPC meeting next week, say market participants
Budget 2022: ICRA expects a satus quo on the stance of the monetary policy as well as the reverse repo rate in the upcoming meeting of the Monetary Policy Committee.
It is widely accepted that the Omicron spread would impact the ongoing quarter but it would be much softer than that of the second wave on the first quarter of the current fiscal
Committee meeting kept policy stance accommodative as Jayanth Varma opposed, but the central bank later worked on raising money market rates through VRRR.
'Need to remain vigilant to incipient cost-push pressures to inflation as well as to uncertainty imparted by Omicron. Its implication for inflation, going forward, are two-fold,' says Shaktikanta Das
Repo rate unchanged at 4% and reverse repo at 3.35%
The 5% tax rate broadly covers most food items, so an increase here would directly impact the monthly grocery budget of households
Here are the 10 important events, policy decisions that Das undertook after becoming the 25th governor of the RBI on Dec 12, 2018
There is a slack in the economy, and the RBI governor expected it to exceed the pre-pandemic level of output only in the third quarter of 2021-22
The Reserve Bank of India's MPC left key rates unchanged at record lows earlier in the month
'We have flagged the issue of fuel (taxes). Now, it is for the government to make a decision'
At the moment, G-SAP is not required but going forward, the G-SAP option, together with options of 'operation twist', and 'open market operations' are very much on the table.
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The RBI accepts overnight excess liquidity from banks at 3.35 per cent, its reverse repo rate
The Indian economy is on the recovery path, but structural challenges remain, Saggar said at an event
Economists say revival will hinge on govt spending, policy support
'Our collective decision was to record our views through the MPC minutes and not elsewhere,' says Chetan Ghate.