RBI MPC Meet 2024 LIVE: Inflation expected to moderate in 2024, says RBI governor

Reserve Bank of India governor Shaktikanta Das on Thursday announced that the central bank will issue guidelines for a principle-based framework for authentication of digital payment transactions. Deep dive

RBI Monetary Policy LIVE: “Our policy stance is in terms of interest rate, which is the principal tool of monetary policy in the current framework. Our stance of withdrawal of accommodation should be seen in the context of incomplete transmission and inflation ruling above the target of 4% and our efforts to bring it back to the target on a durable basis. So far liquidity conditions are concerned these are being driven by exogenous factors which are likely to correct in the foreseeable future, aided by our market operations,” the governor said

RBI Monetary Policy LIVE: “The Reserve Bank undertook six fine-tuning variable rate reverse repo auctions, that is, VRRR auctions from February 2 to February 7, 2024 to absorb surplus liquidity. Financial market segments have adjusted to the evolving liquidity conditions to varying degrees,” says governor

RBI Monetary Policy LIVE: “The public debt levels in advanced economies, in fact, are much higher than those in the emerging market economies. The challenges of debt sustainability in an environment of high-interest rates and low growth at the global level can become new sources of stress. Reducing debt burdens is necessary to create fiscal space for new investments in priority areas, including green transition,” says RBI governor Shaktikanta Das

RBI Monetary Policy LIVE: RBI governor Shaktikanta Das says,"Amidst the current headwinds elevated levels of public debt are raising serious concerns on macroeconomic stability in many countries, including some of the advanced economies. The global public debt to GDP ratio is projected to reach 100% by the end of this decade."

RBI Monetary Policy LIVE: “Global growth is expected to remain steady in 2024, with heterogeneity across regions. Though global trade momentum remains weak, it is exhibiting signs of recovery and is likely to grow faster in 2024. Inflation has softened considerably and is expected to moderate further in 2024. Financial markets are volatile as market participants adjust their expectations on the timing and pace of rate cuts by major central banks, who in any case remain cautious against premature easing in their fight against inflation,” says governor Shaktikanta Das

RBI monetary policy LIVE: Investment cycle gaining steam aided by sustained thrust of government capital expenditure, says governor

RBI Monetary Policy LIVE: Monetary policy must continue to be actively dis-inflationary, says governor

RBI monetary policy LIVE: Uncertainty in food prices continue to impinge on headline inflation, says governor Shaktikanta Das

The Reserve Bank of India on Thursday kept its key policy rate unchanged at 6.5 percent in its Monetary Policy Committee (MPC) meeting on February 8. This is the the sixth consecutive time that the central bank has maintained a status quo. Deep dive

RBI Monetary Policy LIVE: RBI governor Shaktikanta Das to make big announcement shortly. Will the repo rate remain unchanged?

RBI Monetary Policy LIVE: Experts across sectors are of the view that the central bank for the sixth time in a row will not tinker with the repo rate, which currently stands at 6.5 per cent mainly due to concerns over inflation. The government has mandated the central bank to ensure the retail inflation based on the Consumer Price Index (CPI) remains at 4 per cent with a margin of 2 per cent on either side.

RBI Monetary Policy LIVE: "We expect the MPC (monetary policy committee) to unanimously vote for a (rate) pause and policy guidance to shift away from the current tightening bias towards one that is more neutral," analysts at Nomura told Reuters

RBI MPC Meet 2024 LIVE: Stock market opened in green ahead of the RBI monetary policy committee announcement. Sensex rose by over 200 points to open at 72,404. Nifty opened at 21,988. Deep dive

RBI MPC Meet 2024 LIVE A Reuters poll of 60 economists in early February indicated that the RBI would keep its key repo rate unchanged at 6.50% on Thursday and maintain status quo until at least July. Investors are also waiting to see if the moderation in core inflation and focus on fiscal prudence in the interim budget would enable policymakers to signal a turn in the rate cycle.

RBI MPC Meet 2024 LIVE: State Bank of India (SBI) in a report said the RBI is expected to continue its pause stance in upcoming policy.

"Strong US non-farm payroll data and wages seem to have pushed back on market expectations for a quick pivot to rate cuts," it said, and added the first rate cut on the table could be from June to August period "looks the best bet now".

"In its upcoming meeting, the RBI is anticipated to sustain its emphasis on liquidity management, given the persistently tight money market conditions where call money rates continue to hover above the repo rate. Despite some moderation observed in the past week, liquidity in the banking system has remained in deficit since the last policy meeting, reaching a peak of over ₹3.5 trillion in the last week of January. The deficit in systemic liquidity has consequently tightened overall money market conditions, leading to an inversion in a segment of the yield curve," CareEdge tells Mint in a note

“The primary risk to the RBI’s efforts to align headline inflation with the 4% target is likely to stem from potential volatility in food prices,” Rajani Sinha, an economist at Care Ratings Ltd., wrote in a note. Nevertheless, the benign nature of core inflation will provide some reassurance to the rate setters, she said.

The Monetary Police Committee consists of three external members and three officials of the RBI. The external members of the panel are Shashanka Bhide, Ashima Goyal, and Jayanth R Varma. Besides Governor Das, the other RBI officials in MPC are Rajiv Ranjan (Executive Director) and Michael Debabrata Patra (Deputy Governor)

Indian economy should record a growth rate of 7 per cent in the next fiscal and inflation is likely to ease further, RBI Governor Shaktikanta Das said last month. Deep dive

“The RBI MPC will keep the policy rate unchanged at the February 8 policy meeting at 6.5%, sound optimistic on growth, recognize the sharp fiscal consolidation in the interim budget, and reiterate the commitment to the 4% headline inflation target,” Santanu Sengupta, a senior economist at Goldman Sachs Group Inc., wrote in a note.

RBI Governor Shaktikanta Das will reveal the MPC decision at around 10 am on Thursday. The central bank will broadcast the RBI governor's policy statement on the RBI's YouTube channel or RBI's official X handle.

For the past year, the Reserve Bank has maintained the repo rate at 6.5 per cent, having last increased it in February 2023 from 6.25 per cent to 6.5 per cent to curb inflation primarily driven by global factors. Deep Dive

The Reserve Bank of India’s six-member monetary policy committee is expected to keep the repurchase rate unchanged at 6.5%, according to all 42 economists surveyed by Bloomberg. Many experts expect the central bank to stick to its stance of “withdrawal of accommodation” as well, although they expect the tone of the statement to be less hawkish