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Given inflation pressure, there is no doubt that it would be difficult for the MPC to cut rates in the near-term
With three external members of MPC appointed, the committee will meet from October 7 to October 9
The three new members represent a diversity of experience and have engaged with policy making through their careers
Modi's administration has delayed payments it promised India's 28 states as compensation under the new consumption tax regime, increasing tension between the two tiers of government
The Reserve Bank of India deferred its three-day interest-rate meeting due to start Tuesday, without giving any reasons or a new date for its policy decision
From RBI's MPC meeting prep to Govt's plan to club unviable airports with main ones, here are top headlines this morning
The economy and the affairs between RBI and govt were tumultuous in the four years to 2020. Business Standard takes a look at MPC's performance and its consonance with major macroeconomic indicators
From Infosys hinting at acquisitions to Centre seeking Parliament nod for additional Rs 1.67 trillion expenditure, here are top headlines this morning
Despite the dovish tone, the minutes suggest the bank sees little room for rate cuts in the current environment
The nervousness in the bond markets on account of higher inflation, larger supply of bonds in H2 and absence of RBI OMOs so far is evident
There is no provision for extension of tenure of external members, and it is likely that the govt will appoint new ones
Some economists and market insiders argue it may be prudent for the MPC, the policy committee, to hold its fire when it meets early next month
The move will bring NBFCs and HFCs at par with banks in treatment of loans given for restructuring of real estate projects without downgrading the asset classification
"Multiple objectives are not a good thing. They confuse the markets," said a senior economist not wanting to be quoted.
RBI's focus now is on improving transmission and lending
As a push to ensure that retail loans remain growth drivers for banks, RBI has incentivised credit to segments such as automobile, housing and MSMEs
The RBI raised its inflation projection for the six months to Sept to 5-5.4% from 3.8-4% previously, while terming the outlook on price rise as "highly uncertain"
Despite expectations of a moderation in inflation from the elevated level of 7.35% in Dec 2019, the RBI's MPC expects a hardening of prices of other food items, notably those of pulses and proteins
From RBI MPC's decision to keep the repo rate unchanged to the latest on coronavirus, here are the day's top headlines