For the market reaction to the RBI policy announcement, follow our LIVE coverage of the market.
RBI Monetary Policy LIVE Updates: RBI Governor Shaktikanta Das is expected to make the statement on the MPC’s decision at 10 am. A post-policy press conference will be held at 12 pm. The RBI Governor’s statement and the press conference can be viewed live on the RBI’s YouTube channel.
RBI Monetary Policy LIVE Updates: The purpose of low interest rate policy is to support the real economy, but this has not happened yet, given the large output gaps and the lack of credit offtake, believes TRUST Mutual Fund Chief Executive Sandeep Bagla.
In an interview with Moneycontrol, he told Sunil Shankar Matkar that with inflation readings likely at 4-5 percent over the next two months, the RBI does not have a pressing need to guide the markets about normalisation.
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RBI Monetary Policy LIVE Updates: The MPC is more likely to vote for holding the policy repo rate steady at 4 percent, notwithstanding rising inflationary pressures in the economy and the depreciation of the rupee. However, it may try to strike a balance between supporting growth with concerns of rising inflation in its stance. A revision of its projection for inflation for the second half of the financial year and the full year looks likely, given the twin challenges from the depreciating rupee and elevated international prices of commodities. The rupee fell to its six-month low of almost 75 to a dollar as the committee sat down for its three-day deliberation.
Read: MPC may worry about inflation as energy costs rise, rupee depreciates
RBI Monetary Policy LIVE Updates: The RBI may start pulling out surplus liquidity and eventually move towards normalisation of interest rates, putting an end to the days of easy money, as the economy revives and Covid-19 concerns ease, economists said.
Core liquidity surplus is at a record high of Rs 12 lakh crore and the RBI is likely to calibrate the overall surplus, with the outlook for growth having improved over the past three to four months, Vivek Kumar, an economist at QuantEco Research told Moneycontrol.
Read: RBI Policy | No fireworks expected, days of easy money may be over, say top economists
RBI Monetary Policy LIVE Updates: Ahead of the announcement by RBI Governor Shaktikanta Das, here is what we can expect:
> Rates likely to remain unchanged
> Trends in Consumer Price Index
> Likely optimism on growth
> Roadmap on liquidity management
> Previous liquidity measures may continue
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Good morning! Welcome to Moneycontrol’s LIVE coverage of the RBI monetary policy announcement. The RBI is expected to keep the repo rate unchanged and continue with the “accomodative” policy stance.
