RBI Policy Decision Today Amid Global Market Storm: 10 Points

RBI Policy Decision Today Amid Global Market Storm: 10 Points

The Monetary Policy Committee (MPC) of the Reserve Bank of India kept the repo rate unchanged at 6 per cent at the conclusion of the policy meet. The MPC view keeping the benchmark repo rate - the rate at which the central bank lends money to banks - unchanged signals the RBI's desire to wait a wee bit longer before acting on rates, in view of the longer term risks to inflation. Retail inflation hit a 17-month high of 5.21 per cent in December. But then, they should also not be increasing the rates.

However, Hollingsworth estimates rates would need to rise three or four times over the next two years to bring inflation to 2% and predicts that the base rate will finish 2018 at 1.25% and 2019 at 1.75%.

"We felt that at this stage, without more data coming in, it was not necessary to change repo rate or the stance", he said.

More news: Rob Gronkowski loses 'weapons, safes' in Tremendous Bowl break

The monetary policy report released by the Reserve Bank of India (RBI) on Wednesday warns of an upward trend risk in the inflation linked to the consumer price index.

The RBI slightly lowered its gross value added forecast - a measure of economic growth it prefers - for the year ending in March to 6.6 per cent from its previous forecast of 6.7 per cent. Prior to this, there was a 25 basis point cut in the key rates in the month of August, the benefits of which are yet to be fully passed on to the customers.

RBI said it expects the headline inflation to be 5.1-5.6 per cent in the first half of next fiscal and cool down to 4.5-4.6 cent in the second half.

More news: Donald Trump Might Actually Get That Military Parade

However, the RBI had increased the growth projection to 7.2 percent in 2018-19 from 6.1 percent earlier. Second, non-oil industrial raw material prices have also witnessed a global uptick.

Industry bodies, however, felt a rate cut would have spurred private investments which remain sluggish.

A majority of watchers were expecting the MPC to go for a status quo in rates with a hawkish commentary on inflation concerns.

More news: Eagles Jenkins, Long, Smith plan on skipping potential White House visit

Further, the committee assessed that the nascent recovery needs to be carefully nurtured and growth put on a sustainably higher path. Here are 4 key reasons why the slipped 561 points on Tuesday: Bond yields Strong prospects of the Fed hiking interest rates in the next month has led to a spike in USA bond yields, which touched 2.89%, highest level in almost four years.

Related Articles

  • Kylie Jenner reveals her daughter's name

    Kylie Jenner reveals her daughter's name

    Fashion.ie features Fashion news, Irish fashion news, entertainment news, Celebrity news, Online shopping and Irish fashion. Unless Travis wants to make his stage name his legal name, his baby's name is technically Stormi Webster .
    Jessica Jones season two already looks better than The Defenders

    Jessica Jones season two already looks better than The Defenders

    The trailer concludes with what may be a suggestion that Kilgrave will return-possibly with some connection to her origins. Marvel's Jessica Jones Season 2 premieres on Netflix Friday, March 8 (that's International Women's Day).
    Three Palestinians killed by Israeli forces in West Bank

    Three Palestinians killed by Israeli forces in West Bank

    Israeli soldiers attacked, Wednesday, many students who marched in Bethlehem city, in the occupied West Bank , and abducted four. Israeli Defense Forces troops came under fire Tuesday night in Nablus while hunting for Abed al-Karim Adel Assi, who.
  • German coalition talks adjourned until Monday

    German coalition talks adjourned until Monday

    The parties are racing to clinch a deal on renewing the coalition that has governed since 2013 and end months of uncertainty. The SPD's 4,60,000 members will vote in the coming weeks on whether to agree to a coalition government with the CDU and CSU.
    Nest Makes Return To Google Mothership For AI-Infused Smart Home Devices

    Nest Makes Return To Google Mothership For AI-Infused Smart Home Devices

    It also plans to offer more bundled deals for Nest and Google home devices, and may integrate Google accounts into the Nest app. An improved range of products powered by Google can only be good, so we now have to wait to see what the future holds.
    OH  toddler found 'frozen' to death on front porch

    OH toddler found 'frozen' to death on front porch

    Cops say Wynter was at home with her dad while Dashanda took her four-year-old son out, according to reports. Wynter's mom reportedly left the girl in the care of her father to carry out some errands.
  • President Jacob Zuma's Fate to be decided by ANC Special NEC

    President Jacob Zuma's Fate to be decided by ANC Special NEC

    If reports that the ANC is close to removing the president are true, him giving the address would have been even more awkward. Opposition lawmakers have shouted him down or been ejected from the chamber by security guards in a melee of flying fists.
    New leaked details emerge about Red Dead Redemption 2

    New leaked details emerge about Red Dead Redemption 2

    The most important change in gameplay is that " Red Dead Redemption 2 " is said to arrive with an optional first-person view mode. Assaulting pedestrians is a low-severity crime while holding up a saloon and murdering everyone will be taken more seriously.
    US Redeploying Troops from Iraq to Afghanistan Following Islamic State Defeat

    US Redeploying Troops from Iraq to Afghanistan Following Islamic State Defeat

    The US combat mission in Iraq ended in 2010 but some American troops remained in the country to train and assist Iraqi forces. Last year, Abadi told Middle East Eye that Iraq wanted fewer USA forces on its territory after IS was eradicated.
  • Cheddar Man: earliest Britons had dark skin and blue eyes

    Cheddar Man: earliest Britons had dark skin and blue eyes

    This population had lighter skin and brown eyes and would have absorbed populations like the ones Cheddar Man belonged to. The most noticeable difference between Cheddar Man and modern British people is that the former has a darker skin tone.
    Pakistan delivers death sentence in blasphemy murder case

    Pakistan delivers death sentence in blasphemy murder case

    Khan's family has been given a security detail by the government since the case gained national prominence. Fifty-seven people have been on trial in connection with his murder, including three alleged ringleaders.
    Quentin Tarantino under fire for defending Roman Polanski: 'That's not rape'

    Quentin Tarantino under fire for defending Roman Polanski: 'That's not rape'

    In the story, Thurman talks about filming the iconic scene where she had to drive a blue convertible on the road to kill Bill . In an interview with Deadline , Tarantino broke his silence on the issue and gave his account of the vehicle crash.