RBI Meeting Updates: No Change in Repo Rate, Inflation Outlook Raised to 5.4%
RBI Meeting Updates: On August 10, RBI’s MPC increased the expected inflation rate for 2023-24 to 5.4% from 5.1%, said Governor Shaktikanta Das. Meanwhile, the GDP growth projection for the same period stayed at 6.5%.
The RBI Meeting Updates: No Change in Repo Rate, Inflation Outlook Raised to 5.4%
RBI Meeting Updates: The MPC decided unanimously on August 10 to keep the repo rate steady at 6.5%. RBI Governor Shaktikanta Das announced today. The Standing Deposit Facility rate remains at 6.25%, and the Marginal Standing Facility rate, Bank Rate is also retained at 6.75%. The MPC will focus on reducing support as needed.
The central bank hasn’t altered the repo rate for the third time, as stated by RBI Governor Shaktikanta Das.
RBI MeetingUpdates: Expert Opinions
The move to maintain policy rates will encourage consumer demand despite moderate inflation, fostering economic growth. This approach is likely to boost confidence for potential homebuyers, given steady affordability. Since interest rates began to rise, the repo rate has gone up by 250 basis points, leading to a corresponding 160 basis point increase in home loan rates.
We’re cautious about the housing market, especially the affordable and mid-range segments, which are sensitive to pricing and have felt the impact of previous rate hikes. However, keeping the policy rate steady could support the housing market. -Shishir Baijal, Chairman & Managing Director of Knight Frank India
The Reserve Bank of India Meeting Updates: Stock Analysts Suggest ‘Buy on Dips’
Stock market experts recommend adopting a ‘buy on dips’ strategy for certain sectors sensitive to interest rate changes. RBI has kept the repo rate at 6.50% for the third time. After this decision, financial specialists expect fluctuations in industries like banking, non-banking financial firms (NBFCs), automobiles, real estate, and infrastructure.
RBI Meeting Updates: RBI Imposes 10% ICRR on Bank Deposits
RBI enforces a 10% Incremental Cash Reserve Ratio (ICRR) on bank deposits between May 19 and July 28, according to RBI Governor Shaktikanta Das. He adds that this measure is temporary and aims to absorb extra liquidity due to the return of Rs 2000 notes.
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The Reserve Bank of India Meeting Updates: Higher Forecast for 2023-24 Inflation, Significant Increase in Q2
On August 10, the Reserve Bank of India (RBI) lifted its inflation forecast for 2023-24, now anticipating a 30 basis point hike to 5.4 percent.
This revision primarily stems from the second quarter, which is now predicted to reach 6.2 percent – a full hundred basis points higher than previous estimates – attributed to a notable surge in vegetable prices.
RBI MeetingUpdates: AI in Conversational Payments on UPI
The Reserve Bank of India announced on August 10 its contemplation of employing artificial intelligence (AI) for conversational payments on the unified payments interface (UPI). This move is aimed at harnessing new technological advancements to benefit users, as stated.