Overall RBI monetary policy was on expected lines and the policy statement highlighted its commitment to do whatever it takes to ensure financial stability
Live updates: Monetary policy committee's decisions being read out by RBI governor Shaktikanta Das
The temporary supply shocks that have led to higher inflation has been kept aside by the MPC while focusing on growth
The consensus earnings for the current fiscal (FY22) are projected to grow by an outsized 35-40 per cent on the back of a relatively weak earnings profile in the previous year, he said
An accommodative stance on monetary policy (unchanged since June'19), in the face of an unfavourable growth-inflation trade-off is understandable for now
While industry executives feel that there will be no shortfall in consumer demand in the near future, most are wary of the near-term challenges
Retail inflation came at 6.30 per cent in May, and 6.26 per cent in June -- both above the upper limit of the RBI's target
This is a different strategy than what played out until last month, where the central bank seemed more focused on keeping the 10-year bond yields at 6%
The Nifty IT index is one of the strongest indexes market at the current juncture, technical charts suggest
The nation's NSE Nifty 50 Index is among Asia's top gainers this month, beating the regional benchmark by about 4 percentage points
Central bank seeks to keep the government's borrowing costs low, while investors are demanding higher yields.
Limited headroom for yields to decline further, says rating agency
The inflation shock is adding to uncertainty on whether the central bank would stick to its pledge of keeping policy accommodative to support growth after economy was battered by a deadly Covid wave
Foreign exchange reserves surged to $605 billion in the week to June 4 as the central bank mopped up dollars.
MPC likely to revise inflation forecast upward in August policy review
Data later today might show wholesale prices grew 13.3%, the highest rate in three decades, it's unlikely just yet to fully feed into consumer prices.
Oil prices and exchange rate, however, are key monitorables
The monetary policy stance is expected to remain accommodative for most of 2021, until a dramatic improvement in vaccine coverage quells uncertainty regarding the growth outlook
Nifty Bank is expected to touch 36,600 levels, as per the technical chart
Going forward, the inflation trajectory is likely to be shaped by uncertainties impinging on the upside and the downside. The rising trajectory of international commodity prices, especially of crude