Stay updated with live updates of RBI’s Monetary Policy Committee (MPC) December 2024 meeting. Follow Governor Shaktikanta Das announcements on repo rate, interest rate, CPI inflation as well as GDP estimates.
In the previous monetary policy in October, RBI MPC The repo rate was kept at 6.5 percent. However, it had changed the monetary policy stance from ‘accommodative’ to ‘neutral’.
The repo rate is 6.50%, unchanged from February 2023. CRR remains at 4.5%, while statutory liquidity ratio stands at 18%.
Repo rate is the interest rate at which RBI lends money to banks to meet short-term needs. CRR is the percentage of a bank’s total deposits that the RBI must hold in cash, while SLR is the portion of the bank’s net demand and time liabilities (deposits) that must be in gold, cash, or government form. Approved Securities
RBI is mandated to keep CPI inflation in the range of 2-6%. It uses repo rate, reverse repo rate, CRR, and other instruments to control inflation.
Currently, the RBI projects CPI inflation at 4.5% for FY25. According to analysts, the central bank may have to raise it to 4.8 percent due to inflation rising to 6.2 percent in October.
On the GDP growth front, the central bank had projected a GDP growth of 7.2 percent for FY25. It is likely to be revised on Friday after the latest quarterly numbers for September 2024 showed India’s GDP growth slowed to a seven-quarter low of 5.4 percent.
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RBI MPC Meeting Live Updates: Expectations of Real Estate Developers – Pradeep Agarwal, Founder & Chairman, Signature Global
Any rate cut could spur demand and strengthen the sector’s contribution to India’s economic growth.
RBI MPC Meeting Live Updates: Real Estate Developers’ Expectations – Mohit Kalia, Vice President, Raheja Developers
RBI MPC meeting live updates: Expectations of real estate developers ahead of RBI MPC decision
Real estate developers are anxiously awaiting the RBI’s decision, hoping for a rate cut or at least, a more favorable stance that could indicate a future cut. With rising property prices and monthly mortgage payments increasingly squeezing home buyers, many are hoping for relief.
RBI Policy Meeting Live Updates: How CRR Cut Will Impact Indian Economy?
Acuité Ratings Executive Director and Chief Economist Suman Chaudhary highlighted that the economic outlook is marked by uncertainty about growth and a cautious stance on inflation.
A cut in the CRR will infuse liquidity in the banking system, thereby boosting economic activity without directly altering the repo rate. Chaudhary expects a high probability of a 50 basis point cut in CRR between December 2024 and February 2025, bringing it down to 4% from 4.5%.
RBI’s Monetary Policy Meeting Live Updates: D Street Pace
India’s major equity indices rose for a fifth consecutive session on Thursday, gaining about 1% on Friday’s monetary policy review and short-covering by foreign traders on expectations of a CRR cut. The NSE Nifty rose 240.95 points (0.98%) to 24,708.4, while the BSE Sensex jumped 809.53 points (1%) to close at 81,765.86.
RBI Monetary Policy Meeting Live Updates: RBI may opt for CRR cut instead of repo rate cut
M. Govind Rao, member of the 14th Finance Commission and former director of the National Institute of Public Finance and Policy, noted that the MPC faces the challenge of stimulating growth amid a sluggish economy while managing inflation. They believe that the RBI may maintain the current repo rate but consider a modest reduction in the Cash Reserve Ratio (CRR) to ensure adequate liquidity.
RBI Monetary Policy Meeting Live Updates: Summary of October 2024 RBI MPC Meeting – Key Highlights and Outcomes
- Repo rate No change was made at 6.5 percent.
- RBI has kept the rate unchanged from February 2023.
- The monetary policy stance was shifted to ‘neutral’.
- GDP growth forecast It stood at 7.2 percent for FY25.
- Inflation estimation Retained at 4.5% for FY25.
- UPI123PAY The transaction limit (for feature phones) has been doubled to Rs 10,000.
- UPI Lite wallet limit increased to Rs 5,000, per transaction limit increased to Rs 1,000.
RBI MPC Meeting Live Updates: Meet MPC Members
The Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, consists of three external members who serve four-year terms, appointed by the central government. Recently, the government appointed three new external members to the committee: Sugata Bhattacharya, economist; Dr. Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development. and Professor Ram Singh, Director, Delhi School of Economics, Delhi University.
The internal members of the MPC include Shakti Kanta Das as Chairperson, Michael Debbarta Patra, RBI Deputy Governor in charge of Monetary Policy, and Rajeev Ranjan, Executive Director of RBI’s Monetary Policy Department.
RBI MPC Live Updates: What Happens To Your Home Loan Rates If RBI Keeps Repo Rate Unchanged For 11th Consecutive Time?
The Reserve Bank of India (RBI) plays an important role in setting the repo rate Home loan rates. Home buyers are eagerly awaiting RBI’s upcoming decision, as it will have a direct impact on loan interest rates, including for home loans in India.
When the RBI increases the repo rate, banks generally increase their lending rates, resulting in higher home loan interest rates (both fixed and floating). Conversely, a reduction in the repo rate leads to lower lending rates, making home loans more affordable. Borrowers with floating interest rates will feel the impact immediately or at their next rate reset.
For homeowners or those paying Equated Monthly Installments (EMIs), a fixed repo rate means that their interest rates will remain unchanged for now.
RBI’s Monetary Policy 2024 Live: Buzz About New RBI Governor
The policy press conference is likely to be filled with questions about whether Governor Das will get an extension or who could be his successor, if no clarification is provided before Friday. His term is due to expire on December 10, 2024. When Das’ term was last extended to 2021, the government announced it a month earlier.
RBI Monetary Policy 2024 Live: Analysts Expect CRR Cut
To reduce liquidity, analysts expect the RBI to reduce the cash reserve ratio (CRR), the portion of deposits that banks are required to hold as reserves with the central bank. Upasana Bhardwaj, Economist at Kotak Mahindra Bank Ltd., said the cut in CRR will act as a soft signal for the upcoming round of monetary easing.
RBI’s Monetary Policy December 2024 Live: Additional liquidity measures expected
Economists also expect the RBI to introduce measures to address liquidity concerns. Recent capital outflows and pressure on the rupee have added complexity to the policy outlook. The rupee has hit new lows, and any easing of monetary policy could further weaken the currency by narrowing the interest rate differential with the US.
Tight liquidity conditions are the result of large forex interventions by the central bank and currency outflows from the banking system. According to ICICI Securities Primary Dealership, the core banking system liquidity surplus narrowed to Rs 1.2 trillion from Rs 4.5 trillion at the end of September.
RBI’s Monetary Policy December 2024 Live: More MPC Members May Vote for Rate Cut
In the October meeting, external member Nagesh Kumar voted in favor of a 25 basis point rate cut. With calls for a rate cut growing, more MPC members may join him in supporting a rate cut. Madhavi Arora, an economist at MK Financial Services Ltd, estimated that at least two members could vote to cut the key rate to support growth.
RBI’s Monetary Policy December 2024 Live: Growth-Inflation Divergence Poses a Dilemma for RBI MPC
The RBI faces a difficult dilemma with the continuing gap between growth and inflation. Volatile food prices pushed headline inflation to 6.2 percent in October, the fastest pace in a year. According to DBS Bank Economist Radhika Rao, a rise in inflation will make the RBI MPC a tough decision. She expects the RBI to cut its full-year growth forecast by 30-40 basis points and revise its inflation forecast upwards from the current 4.5%.
RBI MPC Live Updates: Das & Co May Cut GDP Forecast
The central bank’s growth forecast of 7.2 percent for the fiscal year to March 2025 is now under threat after the second-quarter GDP data fell by 160 basis points. Economists, including those at Goldman Sachs, have revised their growth estimates downward, with Goldman now forecasting an expansion of 6%, down from a previous estimate of 6.4%.
RBI’s Monetary Policy December 2024 Live: Change in MPC’s policy narrative inevitable
“We believe a change in the MPC’s policy narrative is inevitable, starting with an acknowledgment of the slowdown in growth and the need for counter-cyclical support,” Teresa John, economist at NormalBang Institutional Equities Ltd., told Bloomberg. While the RBI may hold off on a rate cut until next year, he noted that a surprise move cannot be completely ruled out.
RBI’s Monetary Policy Meet December 2024: Inflation and growth key challenges for Shaktikanta Das
Both Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal have in recent months pushed for lower borrowing costs. Some economists are urging the RBI to do more to boost lending and growth. Governor Das is under pressure to tackle both inflation and growth challenges, with his six-year term set to expire next week, and no clear indication of an extension.
RBI’s Monetary Policy Meet December 2024: Rate Cut Unlikely
Governor Shaktikanta Das has repeatedly ruled out an immediate rate cut despite the RBI taking a neutral stance at its October meeting. Inflation remains above the RBI’s 4% target. However, weaker than expected GDP growth of 5.4% for the July-September period is raising concerns that the RBI’s restrictive policies may affect economic activity.
RBI Monetary Policy Meeting December 2024: RBI has kept its policy rates unchanged in the last ten meetings.
During the last ten sessions, RBI It has maintained its policy rate at 6.5 percent. The central bank has taken a more hawkish stance on inflation, mainly due to persistent food price inflation that is not effectively under control. At the same time, it remains optimistic about growth, driven by expectations of favorable monsoon rains and a recovery in capital spending.
RBI monetary policy meeting December 2024: Shakti Kanta Das to announce repo rate decision today
The RBI is set to announce its interest rate decision today, as the country grapples with high inflation and sluggish GDP growth. Stay tuned for latest updates and detailed analysis on India’s economic outlook.