RBI Repo rate hike: Retail inflation will likely soar further as a spike in global energy prices since Russia's invasion of Ukraine seeps into consumer prices
While the RBI's monetary policy committee kept rates steady in its recent policy review in April, UBS expects the Indian central bank to hike rates starting June 2022
RBI monetary Policy: As the central bank keeps the repo rate unchanged at 4 per cent, here is what the industry experts has to say
BENGALURU (Reuters) -Indian shares edged higher on Friday after the central bank kept its key lending rate unchanged at a record low, opting to support post-pandemic economy growth despite rising inflation due to the Russia-Ukraine war. The NSE Nifty 50 index was up 0.3% at 17,691, as of 0443 GMT, while the S&P BSE Sensex rose 0.25% to 59,181.17.
Can RBI afford the luxury of waiting out on the inflation front to allow growth to pick up?
Morgan Stanley expects the April RBI policy to mark the process of policy normalisation with a reverse repo rate hike.
The rates represent a particular stance with regard to the monetary policy and the committee decided to continue with the accommodative stance, said RBI Governor Shaktikanta Das
Rupee opened at 74.90 against the American dollar, and later witnessed an intra-day high of 74.88 and a low of 75.05 against the greenback
RBI has announced the decision of the MPC to keep the major policy repo rate at 4 per cent and reverse repo rate at 3.35 per cent unchanged
The Reserve Bank of India's Monetary Policy Committee is set to meet this week. Will it hike the reverse repo rate -- at which the central bank absorbs the excess liquidity? Let's find some answers
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'Growth concerns amid spread of the Omicron variant and relatively benign inflation out-turns provide the RBI with enough room to maintain its growth-supportive monetary policies,' analysts said
The January 4-7 survey of 41 economists showed Indian retail inflation rose to 5.80% last month from 4.91% in November.
State Bank of India (SBI) has increased benchmark lending rate or base rate by 0.1 per cent, a move that may be followed by other lenders.
The next policy in February will be come post the Budget announcement. It will be crucial as the state of the economy will be clear as will the action taken by the government to counter Omicron impact
The current differential or spread is nearly three times the average spread in the last 10 years.
The broader indices also surged over a per cent each, and gainers outnumbered losers in 2.5:1 ratio
If Omicron becomes a major issue, risks to India's inflation will likely rise further
The RBI stopped the Government Securities Acquisition Programme (G-SAP), through which it has infused Rs 2.2 trillion of liquidity in the system
RBI Governor's statement says, this process will be gradual, calibrated, and non-disruptive, while remaining supportive of the economic recovery