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To lower rates in a bold or measured way is a classic dilemma of monetary policy

Livemint

Livemint · 1m ago

To lower rates in a bold or measured way is a classic dilemma of monetary policy

The Reserve Bank of India recently chose a bold interest rate cut amidst high economic uncertainty, challenging traditional conservative policy approaches. The decision reflects differing views within the monetary policy committee, especially considering global economic unpredictabilities like trade tensions and financial market volatility. The term "uncertainty" frequently appears in committee discussions, highlighting ongoing economic challenges. The move raises questions about the adequacy of current estimates for India's neutral interest rate in today's volatile context.

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Experts seek RBI interest rate cut to revive real estate, ease home loan burden

Livemint

Livemint · 8m ago

Experts seek RBI interest rate cut to revive real estate, ease home loan burden

The Reserve Bank of India's decision to keep its key interest rate unchanged has prompted real estate experts and developers to call for a rate cut. They argue that lower rates are needed to boost sales, particularly in the affordable housing segment, and ease the burden of borrowing costs. The RBI's Monetary Policy Committee did, however, reduce the cash reserve ratio by 50 basis points, aiming to increase liquidity in the banking system. Housing sales have declined as prices have risen, compounded by high home loan rates and the impact of the Covid-19 pandemic.

A pivot in monetary policy in October is likely

Money Control

Money Control · 10m ago

A pivot in monetary policy in October is likely

- The forthcoming Monetary Policy Committee (MPC) review could bring about policy easing after 14 meetings of maintaining status quo. - Three factors, geopolitical tensions, US Federal Reserve's interest rate decision, and performance of the southwest monsoon, have delayed the easing of monetary policy. - The market is curious about the perspectives of the new committee members on inflation, growth, and liquidity. - Inflation has dropped below 4% in July and August, creating room for monetary policy easing. - The US Federal Reserve's rate cut has opened the door for rate cuts in emerging markets, including India. - Some segments of the economy are showing signs of weakening growth, reflecting the impact of higher interest rates and tighter lending norms.

RBI holds rates again as inflation fight continues; retains GDP forecast

VCCircle

VCCircle · 1y ago

RBI holds rates again as inflation fight continues; retains GDP forecast

The Reserve Bank of India (RBI) has chosen to keep its key interest rate unchanged, as it maintains its focus on reducing inflation towards its 4% target. The Monetary Policy Committee has decided to retain the repo rate at 6.50%. This is the ninth consecutive policy meeting where the rate remains unchanged. Four out of six committee members voted in favour of the decision. The RBI Governor, Shaktikanta Das, stated that it is important to maintain the current monetary policy to bring inflation down and ensure sustainable economic growth. The MPC last changed rates in February 2019.

RBI holds rates as expected, shifts stance to 'neutral'

VCCircle

VCCircle · 10m ago

RBI holds rates as expected, shifts stance to 'neutral'

- RBI keeps key interest rate unchanged at 6.50% for the tenth consecutive policy meeting - The policy stance is changed from "withdrawal of accommodation" to "neutral" - Five out of six members of the Monetary Policy Committee vote in favor of holding rates - Annual retail inflation remains below the central bank's target of 4%, standing at 3.65% in August - Manufacturing and services PMI indicators show a slowdown in economic growth - Overall growth in India slows to 6.7% in the June quarter

Dell's 50% employees choose remote work over promotions, says report. Check why

Livemint

Livemint · 1y ago

Dell's 50% employees choose remote work over promotions, says report. Check why

Dell Technologies is experiencing a dilemma as almost 50% of its employees have chosen to work fully remote, despite the disadvantages in terms of career advancement. The company implemented a new policy distinguishing employees as either remote or hybrid, with remote workers being restricted from promotions or applying for new roles. However, many employees have cited practical, financial, and personal reasons for opting to work remotely. Some employees have expressed frustration with limited advancement opportunities regardless of their working arrangements and are exploring job opportunities elsewhere.

India appoints former World Bank, IMF economist Poonam Gupta as central bank deputy

VCCircle

VCCircle · 4m ago

India appoints former World Bank, IMF economist Poonam Gupta as central bank deputy

India appointed Poonam Gupta, former economist at the World Bank and IMF, as the new deputy governor of the Reserve Bank of India for a three-year term. Previously the Director General of the National Council of Applied Economic Research, Gupta will replace Michael Patra and is expected to join the monetary policy committee. Her appointment arrives as India faces economic growth challenges, and the RBI is anticipated to continue easing interest rates to boost growth.

Mint Quick Edit | Low inflation: Stoking high hopes?

Livemint

Livemint · 1m ago

Mint Quick Edit | Low inflation: Stoking high hopes?

India's retail inflation rate has dropped to under 3%, nearing the lower limit of the Reserve Bank of India's target, marking unprecedented price stability in over six years. This low inflation rate gives the RBI more room for policy maneuvers, as evidenced by its recent substantial monetary stimulus. However, how the inflation trend will develop throughout the year remains uncertain, posing a significant economic question for India.

Despite global turmoil, inflation to stay below 4% target: MPC member

Economic Times

Economic Times · 1m ago

Despite global turmoil, inflation to stay below 4% target: MPC member

Monetary Policy Committee (MPC) member Ram Singh noted that despite geopolitical risks affecting oil and fertilizer prices, India's CPI-based inflation is expected to stay below the 4% target. He highlighted that India's robust foreign exchange reserves and stable global commodity prices offer a cushion. Recent policy actions, including a rate cut, aim to maintain economic stability amid external uncertainties. The Reserve Bank of India remains prepared to ensure financial stability with various monetary tools.

SBI Research anticipates RBI repo rate cut in February policy meet

Livemint

Livemint · 8m ago

SBI Research anticipates RBI repo rate cut in February policy meet

The Reserve Bank of India (RBI) is expected to cut repo rates in February 2025, regardless of the impact of the rupee's weakness against the dollar, according to a report by SBI Research. The report predicts a cumulative 75 basis points rate cut. The RBI recently announced its decision to keep the repo rate at 6.50%, maintaining a neutral monetary policy stance. The report also mentions the RBI's upward revision of inflation projection for 2024-25 and the downward revision of GDP growth forecast.

Higher policy transmission likely as share of floating rate loans rises: RBI

Economic Times

Economic Times · 1m ago

Higher policy transmission likely as share of floating rate loans rises: RBI

The Reserve Bank of India indicates that monetary policy transmission is expected to be more effective this time, as the share of floating rate loans among banks has risen, reaching 75.7% in March 2025 from 72% in March 2023. Public sector banks have a higher share of floating rate loans (80.9%) compared to private banks. Recent measures by the RBI, including liquidity injections and CRR reductions, aim to enhance monetary policy transmission to financial markets.

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