RBI retains its growth outlook for the fiscal year started April 1 at 10.5%, unchanged from its February outlook.
Indian shares inched higher on Wednesday, ahead of a RBI decision that could leave interest rates at record lows, as a surge in coronavirus cases sparked fears about the impact on economic growth
Status quo expected on Wednesday, but guidance will hold the key for bond market
The disconcertingly sharp new wave of Covid-19 cases has reignited uncertainty regarding the economic outlook in the immediate term
RBI should not digress from maintaining price stability
At present, an important reason for the large leeway around the inflation target lies in the behaviour of the prices of oil and food, which can push prices more generally
At best, the RBI stopped a sharp spike such as the one witnessed after the global financial crisis
The currency and finance report, which the central bank claims is not its official view, says the RBI must retain the freedom to tweak the reverse repo and MSF rate for liquidity management purposes
RBI will need to do a tough balancing act
Street expecting across-the-board earnings acceleration in FY22
The broader markets, however, came under selling pressure. The S&P BSE MidCap and SmallCap indices ended 0.93 per cent and 0.28 per cent lower, respectively
RBI has done exceptionally well in managing government's extended borrowing this year when fiscal deficit has shot-up to 9.5 per cent of GDP
The MPC meet outcome is neutral to different sectors. Although some sectors were eyeing for cut in rates, this was impractical going by the large spend envisaged by the Budget
This is the fourth time in a row that MPC has decided to keep the policy rate unchanged at 4%. The central bank had slashed the repo rate by 115 basis points since late March 2020 to support growth
RBI Monetary policy LIVE updates: MPC voted unanimously to keep rates unchanged, said RBI governor Shaktikanta Das. Stay tuned for all the LIVE updates
Projection for CPI-based inflation revised to 5.2% for Q4 of FY21, for H1 of FY22 at 5% to 5.2%, and for Q3 of FY22 at 4.3%
After touching an all-time high of 50,687.51 during the day, the Sensex ended 358.54 points or 0.71 per cent at its new closing record of 50,614.29
Over the past two years we have strengthened and deepened our supervisory systems, said Das
Given the RBI's projection on inflation, we may not see any further cut rate at least till mid-March 2021. It may also get postponed to next fiscal year