Brickwork Ratings’ Post

How does the government keeps the economy in check? So, there are three tools: CRR Cash Reserve Ratio), SLR (Statutory Liquidity Ratio), and the Repo Rate. CRR was a big deal for managing liquidity in the pre-COVID era and post-COVID, SLR rates has barely moved. But now,in the last couple of years it was about the Repo Rate basically, the rate at which the Reserve Bank of India (RBI) lends to banks. Higher Repo Rate = less liquidity and this tightens the economy. Lower Repo Rate = more liquidity and it loosens things up. Right now, the repo rate is 6.5%, a bit higher than the 20-year average of 5.7%. Inflation is still high at 6.25%, thanks to food prices but this is expected to correct soon. GDP growth has been a little weak and mostly due to industrial segment such as manufacturing, mining, electricity seeing slow growth, but overall expectations for the year are holding up as festive season is lined up and other factors remain stable. Therefore, a no rate cut is the decision this MPC seems justified. CRR on the other hand have seen a cut to boost the liquidity and support the economy. #MPC #RBI

India cuts banks’ cash reserves ratio by 50bps; lowers full-year GDP forecast India’s central bank on Friday maintained its benchmark interest rate at 6.5% but cut its cash reserve ratio (CRR) by 50 basis points to 4%, in a bid to improve growth and rein in high inflation. #ICIS #India #GDP #inflation #RBI #CRR https://lnkd.in/ghx6zzVW

🔔 RBI Keeps Repo Rate Unchanged at 6.5%; Raises GDP Growth Forecast Today, the RBI announced that the repo rate will stay at 6.5%, marking the eighth time in a row. They also increased the GDP growth forecast for FY25 from 7% to 7.2% and kept the inflation forecast at 4.5%. Key points: Repo Rate: 6.5% GDP Growth for FY25: 7.2% Inflation for FY25: 4.5% RBI Governor Shaktikanta Das highlighted the focus on India's growth and inflation. The steady repo rate supports economic stability. Market reactions were positive, with Sensex and Nifty 50 both rising over 1%. This is a good time for depositors to lock in higher returns on fixed deposits as banks may offer better rates. Overall, the RBI's cautious approach aims to support strong economic growth and stability. 💼 What are your thoughts on this decision? #RBIPolicy #RepoRate #IndianEconomy #GDPGrowth #Inflation #Finance #Investment

RBI Keeps Repo Rate Unchanged At 6.5%, GDP Growth Seen At 7% The RBI decided to keep the key policy repo rate unchanged at 6.5% in its April monetary policy along with maintaining the stance at ‘withdrawal of accommodation’. India’s real GDP growth for FY25 is projected at 7%. CPI inflation for FY25 is estimated at 4.5%. The RBI doesn’t want to lower its guard on inflation too early and lose the gains yet as it focuses on bringing down inflation to the 4 per cent medium-term target on a sustainable basis. Watch Siddharth Zarabi, Managing Editor, Business Today TV in conversation with Madan Sabnavis, Chief Economist, Bank of Baroda and Saugata Bhattacharya, Economist. Watch LIVE: https://lnkd.in/gPmVhiaS | #Easynomics #rbi #reservebankofindia #shaktikantadas #reporate

Despite lower GDP growth, the Reserve Bank of India (RBI) kept the repo rate unchanged but cut CRR by 50bps to 4%. This decision was influenced by October's inflation of 6.21%, a weaker INR at 84.7 against the dollar, and the need to boost savings. Bond markets had already factored in this decision, with only small changes in the 10-year G-Sec yield. If inflation drops, a rate cut may occur early next year to stimulate economic growth and improve GDP. #BondsInFocus #BondsInNews #Bondbazaar

📊 RBI Monetary Policy Update - October 2024 📊 The Reserve Bank of India (RBI) has retained the repo rate at 6.50% while changing the stance to 'neutral', ensuring a balance between inflation management and economic growth. Key highlights from the meeting include: 🔹GDP Growth Projection : Revised to range between 7.00% - 7.40% for FY2024-25 and projected at 7.30% for Q1FY2025-26. 🔹Inflation Outlook : Projected to remain steady, with revisions for FY2024-25 ranging between 4.10% - 4.80%. 🔹Policy Rates : SDF rate remains at 6.25%, and MSF & Bank Rate at 6.75%. The RBI’s focus remains clear: aligning inflation with targets while fostering growth in the economy. #Darashaw #RBIMonetaryPolicy #EconomicGrowth #InflationControl #GDP #PolicyRates #FinanceUpdates #MonetaryPolicy

RBI Maintains Repo Rate at 6.5%, Raises FY25 GDP Growth Forecast to 7.2%: In its latest monetary policy announcement, the Reserve Bank of India (RBI) has decided to keep the benchmark repo rate steady at 6.5%, marking the eighth consecutive time the rate has remained unchanged. This decision was made by the six-member Monetary Policy Committee (MPC), led by RBI Governor Shaktikanta Das, and passed by a 4:2 majority. The RBI continues with its stance of ‘withdrawal of accommodation,’ indicating a cautious approach to liquidity management. Significantly, the RBI has revised the GDP growth forecast for the fiscal year 2024–25, increasing it from 7% to 7.2%. This adjustment reflects optimism about India's economic prospects despite global uncertainties. Additionally, the central bank has retained the inflation forecast for FY25 at 4.5%, signaling confidence in maintaining price stability. This policy review, the first after the 2024 Lok Sabha elections, underscores the RBI's balanced approach to fostering economic growth while keeping inflation in check. The continued pause on the repo rate highlights the bank’s focus on supporting economic recovery amid evolving domestic and international challenges. #RBIPolicy #RepoRate #GDPGrowth #InflationForecast #MonetaryPolicy #IndiaEconomy #CentralBank #FinanceNews #EconomicOutlook #RBIGovernor

📊 RBI Monetary Policy Update - December 2024 📊 The Reserve Bank of India (RBI) has retained the repo rate at 6.50% and retained the stance to 'neutral', ensuring a balance between inflation management and economic growth. Key highlights from the meeting include: 🔹GDP Growth Projection : Downwardly revised to 6.60% for FY2024-25. 🔹Inflation Outlook : Projected to remain steady, with upward revisions for FY2024-25 ranging between 4.50% - 5.70%. 🔹Policy Rates : SDF rate remains at 6.25%, and MSF & Bank Rate at 6.75%. The RBI’s focus remains clear: aligning inflation with targets while fostering growth in the economy. #RBIMonetaryPolicy #InflationManagement #EconomicGrowth #RepoRate #IndiaEconomy

Key Highlights from the RBI MPC Meeting: • Reserve Bank of India (RBI) kept the repo rate unchanged at 𝟔.𝟓%, signaling a cautious approach to the current economic conditions. • RBI has cut the Cash Reserve Ratio (CRR) by 50 basis points to 𝟒%. • India's GDP growth for July-September 2024 dipped to 𝟓.𝟒%, falling short of RBI’s earlier 𝟕% projection and hitting a seven-quarter low. • Inflation expectations have also been raised to 𝟒.𝟖%, driven by persistent inflationary pressures, especially in food sectors. #RBI #MPC #MonetaryPolicyCommittee #GDP #India #MPCmeeting

𝗥𝗕𝗜 𝗞𝗲𝗲𝗽𝘀 𝗥𝗲𝗽𝗼 𝗥𝗮𝘁𝗲 𝗨𝗻𝗰𝗵𝗮𝗻𝗴𝗲𝗱 𝗮𝘁 𝟲.𝟱%, 𝗦𝗵𝗶𝗳𝘁𝘀 𝘁𝗼 𝗡𝗲𝘂𝘁𝗿𝗮𝗹 𝗦𝘁𝗮𝗻𝗰𝗲 In its October 2024 meeting, the Reserve Bank of India (RBI) held the repo rate steady at 6.5% while shifting its stance from "withdrawal of accommodation" to "neutral." Governor Shaktikanta Das emphasized managing inflation amid global uncertainties. This shift allows flexibility for potential rate cuts, with analysts expecting a possible 25 basis points reduction by December 2024. The RBI's unchanged GDP growth projection of 7.2% reflects optimism despite global challenges. #RBI #MonetaryPolicy #Inflation #InterestRates #IndiaEconomy Source:- https://lnkd.in/gC65Sakg