Shaktikanta Das News

RBI) reason to hold off on monetary policy tightening. Consumer Price Index (CPI) inflation rose to 7.44% in July from 4.87% in June, shooting past the RBI's tolerance band of 2-6% and marking the highest print in 15 months. A Reuters poll of 53 economists had predicted the retail price gauge at 6.4% in July.

MUMBAI : A declining core inflation, amid a 15-month high retail inflation, gives no reprieve to the Reserve Bank of India (RBI), which recently called for supply-side interventions to cushion food price shocks. Inflation, without accounting for food and energy prices, known as core inflation, stood at 4.9% in July, as against 5.1% in June. Economists believe it will remain sticky in the coming months.

MUMBAI : A declining core inflation, amid a 15-month high retail inflation, gives no reprieve to the Reserve Bank of India (RBI), which recently called for supply-side interventions to cushion food price shocks. Inflation, without accounting for food and energy prices, known as core inflation, stood at 4.9% in July, as against 5.1% in June. Economists believe it will remain sticky in the coming months.

RBI's move to raise incremental CRR that has come as a shock to banks could also end up increasing transmission of deposit rates as the move will force banks to review their deposit rates to absorb more durable liquidity. In his latest monetary policy statement, governor Shaktikanta Das imposed a temporary incremental cash reserve ratio (I-CRR) of 10% on incremental deposits received between 19th May and 28th July 2023 given the surge in surplus liquidity in the system.

Inflation likely rose to 6.50% in July; can a fresh spike in retail inflation upset the market? Last week, the Reserve Bank of India (RBI) raised the CPI inflation targets to 5.4 per cent for FY24 versus an earlier projection of 5.1 per cent. Headline inflation projection for Q2 of 2023-24 has been revised up substantially, primarily due to the price shock from vegetables.

Lok Sabha elections due in April 2024, and before that a string of state assembly polls, Raisina Hill would like to see the Reserve Bank of India (RBI) start cutting rates sooner rather than later. Lower borrowing costs will allow it to craft a more election-friendly budget and signal to middle-class families repaying home loans that the cycle of rising monthly installments has ended. RBI’s interest-rate-setting committee has refrained from touching rates for three meetings in a row this year, including in the latest one, held from 8 to 10 August.

RBI monetary policy was also announced wherein Governor Shaktikanta Das-led MPC kept the repo rate steady at 6.50 percent. Air India too this week unveiled it's brand news logo. In politics, Rahul Gandhi's Lok Sabha membership was restored.

RBI) governor Shaktikanta Das on Friday pitched for speedy completion of the general review of the International Monetary Fund to help countries in debt distress. Speaking at a seminar on the global economy organized by the finance ministry and RBI, Das said recent experience suggests countries facing financial difficulties go to other bodies beyond the IMF because of “perceived stigma" or lack of access.

Terming the Unified Payments Interface (UPI), a public sector initiative, Reserve Bank of India (RBI) Governor Shaktikanta Das said that it was not necessary that public goods could only be set up and financed by the public sector. “In this regard, it is worthwhile to build innovative design features which private investors find attractive in financing GPGs,” Das said while delivering closing remarks at a G20 Finance Track National Event organised by the Finance Ministry and the RBI. Keeping in mind very large investment requirements for setting up global public goods (GPGs), trigger financing could come from public investment, which would minimise risk and widen market access, Das said. “Subsequent financing needs can be met by the private sector. This is where international capital flows and movements assume importance,” he said. The central bank head said that multilateral development banks could act as catalysts for private sector investments through risk-sharing methods.

Reserve Bank if India (RBI) revise inflation forecast? Headline inflation projection for Q2 of 2023-24 has been revised higher substantially, primarily due to the price shock from vegetables. Since the last policy in June, inflationary pressures have increased, with headline Consumer Price Index (CPI)-based inflation rising from 4.3% in May to 4.8% in June. Economists are expecting vegetables prices to push headline CPI inflation to above 6% year-on-year (YoY) in July.

The BSE Sensex was trading 138 points or 0.21% lower at 65,549. Nifty50 was trading at 19,498, down 44 points or 0.23% at around 9.18 am.

Reserve Bank of India (RBI) will issue guidelines to banks and housing finance companies (HFCs) on resetting the tenor and/or equated monthly instalments (EMIs) after it found “several instances of unreasonable elongation” of floating rate tenor by lenders without proper consent or communication to borrowers. Governor Shaktikanta Das said lenders will have to also take into consideration age and payment capacity before changing loan terms. “It is necessary to avoid an undue long elongation which sometimes may camouflage an underlying stress in a particular loan.

Whenever monetary authorities wanted to influence price levels for goods and services, they resorted to the popular tool — interest rates that make money more expensive or affordable. If inflation climbs, they raise the interest rate to dampen demand, and if growth slows, they reduce the cost of funds to fuel demand. With inflation in India soaring due to high vegetable prices, the Reserve Bank of India, going by the textbook, could have raised interest rates. But it did not do so. It expects the current high prices for vegetables to be temporary. But Governor Shaktikanta Das promised to act when high prices turn out to be persistent. That means whenever the RBI moves next to put a lid on price pressure it would be an increase in the key repo rate, the rate at which it lends to banks. But there’s a slight twist that is emerging. “The recent spike in CPI inflation is expected to be short-lived going by past trends,” said Das. “In such situations, we need to remain watchful and not resort to any knee-jerk reactions. And deployment of policy instruments is not just in terms of rate and stance but there are other ways of dealing with it. We have done our bit with regard to the incremental CRR today.”

MUMBAI : The Reserve Bank of India (RBI) on Thursday said it would set rules to enhance transparency in interest rate and tenor resets for floating loans, an outcome of home-loan repayment periods being extended to as long as 50 years in certain cases. After RBI started raising the repo rate in May last year, home-loan borrowers, most of whose loans are pegged to external benchmarks like the repo rate, had to substantially increase their monthly repayments or extend their repayment tenor or a combination of both. As Mint reported in March, these extended loan tenors resulted in certain borrowers being obligated to make payments well into their 70s and 80s.

RBI’s) monetary policy committee (MPC) on Thursday kept the policy rate and stance unchanged for the third time in a row, citing the need to watch the evolving inflation trajectory amid adverse weather conditions. All MPC members voted for a pause in the repo rate at 6.5%. Five out of six members also voted for a continuation of the “withdrawal of accommodation" stance.

RBI) MPC was an exception to the rule. It was a relatively open-and-shut case, with markets unanimous that the MPC would opt for the status quo. Even so, there was just that soupçon of uncertainty up to the moment of Governor Shaktikanta Das’s statement on Thursday morning, confirming that yes, markets had called it right: The policy—or repo—rate, at which RBI infuses liquidity into the system, has been kept unchanged at 6.5% for the third successive time.

Reserve Bank of India (RBI) left its key policy rates unchanged for a third straight meeting but signalled tighter policy if food prices drive inflation higher. The monetary policy committee (MPC), which has three members from the central bank and a similar number of external members, held the benchmark repurchase rate (repo) at 6.50 per cent in a unanimous decision.

Shaktikanta Das in his monetary policy statement on Thursday announced that all scheduled banks will have to maintain a 10% incremental cash reserve ratio (ICRR) from August 12. The ICRR of 10% will be on the increase in the banks’ net demand and time liabilities (NDTL) between May 19, 2023, and July 28, 2023.

inflation projection for the current fiscal by the Reserve Bank of India (RBI) on Thursday, while highlighting the global economic conditions, has dashed Dalal Street investors’ hope of a rate cut any time in the near future. Until the last policy meet, expectations were building for a longer pause and possibly, a rate cut later in FY24.

RBI Governor Shaktikanta Das, while speaking on the decision of the bi-monthly Monetary Policy Committee meeting today, said that a Public Tech Platform for Frictionless Credit delivery is being developed by the Reserve Bank Innovation Hub (RBIH) for end-to-end digital lending processes. The RBIH is a wholly owned subsidiary of the RBI set up to promote and facilitate an environment that accelerates innovation across the financial sector.

infrastructure financing, the Reserve Bank of India has relaxed regulations of Infrastructure Debt Funds (IDF) to enable them greater access to funds. The RBI has withdrawn the requirement of a sponsor for the IDFs. Also, the central bank has allowed IDFs to finance Toll Operate Transfer projects (ToT) as direct lenders, access to External Commercial Borrowings (ECBs) and allowed making tripartite agreements optional for PPP projects.