RBI MPC Meet highlights: CPI inflation estimated at 6.8% in Q3FY21, says RBI Governor

The Reserve Bank of India's Monetary Policy Committee (MPC) has kept Repo Rate unchanged at 4%. It has maintained "Accomodative" stance. The voted unanimously to hold rates steady, RBI Governor Shaktikanta Das said.

Repo rate unchanged; real GDP growth projected at -7.5% for 2021

RBI keeps policy repo rate unchanged at 4%. Signs of economic recovery far from broad-based, said RBI Governor Shaktikanta Das. This is the third time that the RBI has maintained status quo. Das also said that the central bank will continue the accomodative stance as long as needed, implying more rate cuts in the future if need arises to support the economy hit by the Covid-19 pandemic.

Read more

Near-term financial stability risks have been contained. Portfolio flows into emerging markets have recoevered. RBI seeks to quickly recoup employment and output losses. We remain strongly committed to preserve stability of the financial sector: Das

Near-term financial stability risks have been contained. Portfolio flows into emerging markets have recoevered. RBI seeks to quickly recoup employment and output losses. We remain strongly committed to preserve stability of the financial sector: Das

Comprehensive guidelines for derivatives have been reviewed and a revised draft will be issued today, says RBI governor.

CPI inflation estimated at 6.8% in Q3FY21, says RBI governor.

GDP expected contract by 7.5% in the FY21: Das

Have been able to swiftly resolve situations at two scheduled commercial banks, says RBI governor.

Economy recovering faster than expected: Das

The outlook on inflation has turned adverse in past two month: says Das

MPC will monitor all threats to policy stability, says Shaktikanta Das.

Inflation spiral being fuelled by supply chain disruptions, excessive margins and indirect taxes, says RBI governor.

Inflation likely to remain elevated with some relief in the winter months, says RBI Governor Shaktikanta Das

To continue accomodative stance as long as needed, RBI governor says

Markets in green ahead of policy decision

The markets are trading in green ahead of policy decision. The benchmark indices are up by about 0.5%.

RBI caught in dilemma over inflation versus growth

"The upcomingRBIMPC policy will likely be a damp squib on conventional policy actions with inflation sticky at over 7% in the near term. While growth concerns and sub-optimal fiscal response may keep MPC’s stance accommodative, the inflation trajectory hints that the bar for further conventional rate cuts becomes high for the rest of FY21. We expect theRBIto raise its inflation and growth forecasts in the upcoming policy,"Emkay Global Financial Services said in a note.

RBI likely to maintain status quo in its monetary policy on December 4

Madan Sabnavis, Chief Economist, Care Ratings said the six-member MPC is expected to factor in its decision making the nascent signs of improvement in the domestic economy while also recognising the fragile nature of this recovery and the underlying downside risks.

Read more

“With inflation continuing to trend well above RBI’s medium-term target of 4%, there is limited room for a rate cut in the upcoming policy. We have seen encouraging signs of a pick-up in economic activity and a return of consumer demand, buoyed by the festive season. The next few months are critical as it needs to be seen whether demand levels will sustain and the central bank will closely monitor the growth trajectory and high-frequency data prints.

After its last MPC meeting in October, RBI kept policy rates unchanged to help tame inflation that in the recent times has surged past 6%. But the central bank has cut policy rates by 115 basis points so far this year.

“RBI should do not do anything for now. They have done enough. They are the only ones who have held things up. Otherwise it would have been worse. They should wait and see what the government is doing vis-à-vis their fiscal policy, Pronab Sen, former chief statistician of India, told DH.

The MPC began its deliberations on Wednesday. Amid high inflation and the central bank exhausting almost all its tools, experts have said it should wait and watch till the government makes its stand clear on the fiscal policy.

Good morning readers, RBI Governor Shaktikanta Das will address the media shortly. The Monetary Policy Committee (MPC) of RBI is expected to maintain the status quo when it announces its policy decision on December 4. Stay tuned for live updates.