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RBI Policy Analysis in 7 Points! 📈🌐 1. No Rate reduction - negative news absorbed well 2. CRR rate reduced is positive 3. Inflation Projections very positive 4. GDP growth projections moderate projections 5. Credit Extension to small finance banks positive 6. Overnight Rupee Rate will strengthen currency in coming months 7. Positive Commentary overall . . . Follow Sunil Gurjar, CFTe For more such insight and learning 🙂 . . . #investment #finance #stockmarket #mutualfund

RBI's Strategic Balancing Act: Growth vs Inflation In its latest MPC meeting on 6th Dec 2024, RBI maintained the repo rate at 6.5% & cut CRR by 50 basis points to 4%. The CRR reduction is expected to inject liquidity into the banking system , stimulating economic activity. However, the unchanged repo rate underscores the need to control inflationary pressures amidst global uncertainties. The Inflation Forecast changed to 4.8% and GDP Growth is revised to 6.6% for FY25 , this careful approach aims to support economic growth while managing inflation. #RBI #MPC #Economicgrowth #Inflation #FinancialStability

CRR cut by 50 BPS but Repo Rate remains unchanged. Also declaration that economic growth is expected to recover in Q3 and Q4. GDP Growth rate for 2024-25 projected at 6.6%. RBI decision today is expected to help equity markets without making banking sector less competitive as bank deposits remain attractive for investors with limited propensity to take risk. If deposits grow banks can lend more helping investment and consumption demand. #rbipolicy

Our Product & Research team has prepared an insightful note on the recent RBI Monetary Policy Meeting. Key highlights include the unchanged repo rate at 6.5% and a 50 basis points cut in the Cash Reserve Ratio (CRR). Dive into the details to understand the implications for liquidity, credit growth, and economic forecasts.

Repo rate is the interest rate RBI charges to the banks when they borrow money from RBI. RBI has a target of keeping inflation within the range of 2 to 6%; to maintain this, the MPC (Monetary Policy Committee) reviews the economy every two months. This is called a bi-monthly monetary policy review. When the inflation is above 6%, MPC hikes the Repo rate making loans more costly and hence demand will come down eventually controlling the inflation and vice versa. (Ideal scenario) However, there are many factors apart from the inflation which guides MPC decisions. Lowering the Repo rate         | Low-cost loans to customers         | More demand for goods and services          | Profit of companies will increase         | Good for the equity market To put it in a nutshell, a low-interest rate means a higher return in the equity market and vice versa. #Repo #RBI #Inflation #MPC #Economy #Policy #LowCost #Profit #micofinmart #financeNews #Finance #News #Credible #Data #Facts

The MPC's decisions directly impact interest rates, which influence borrowing costs for businesses and consumers alike. With inflation concerns still prevalent, the RBI's approach will be closely watched by market participants. The last review saw the repo rate at 6.5%, and any changes could signal the RBI's stance on economic growth versus inflation control. Stay tuned for updates and analysis following the meeting! #RBI #MonetaryPolicy #Economy #Finance #InterestRates #Inflation#Doctor's #CA

According to the RBI report on currency & finance 2021-22, one% increase in banking liquidity surplus above 1.5% of NDTL can push up inflation by 60 BPS on an average in a year.

🚨 Monetary Policy Update: Here’s What You Need to Know! 🚨 1️⃣ Repo rate unchanged at 6.5%, but with a twist – The MPC has reduced the Cash Reserve Ratio (CRR) by 50 bps, releasing ₹1.16 lakh crore into the banking system. This move is expected to improve liquidity and provide a slight boost to Net Interest Margins (NIMs). 2️⃣ GDP growth forecast revised downward to 6.6% for FY25 (previously 7.2%). While concerns over weak domestic activity persist, festive demand and strong consumer sentiment are anticipated to provide some support. 3️⃣ Inflation projection rises to 4.8%, reflecting recent surges in food prices. The RBI’s balanced approach aims to ensure price stability while nurturing growth. 4️⃣ Lower CRR = healthier Net Interest Margins. A win for the banking sector. The Big Picture: The RBI is striving to maintain a fine balance between inflation management, growth, and liquidity in a challenging economic environment. The CRR cut signals proactive measures to stabilize the banking system while accommodating seasonal liquidity demands. 📊 What’s your take? Will these measures foster stability or add more complexity to economic recovery? Share your insights below 👇 #MonetaryPolicy #RBI #EconomicOutlook #GrowthVsInflation

RBI Update! Monetary Policy Statement, 2023-24 Resolution of the Monetary Policy Committee (MPC) February 6 to 8, 2024 On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (February 8, 2024) decided to: I. Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 percent. Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25 percent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. II. The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth. Assessment #rbipolicy #corporatebanking #indianeconomy #inflation

🌟 RBI MPC December 2024 Updates: Stability Amidst Challenges 🌟 The RBI's Monetary Policy Committee (MPC) announced some pivotal decisions today to address economic challenges like high inflation and a GDP slowdown. Here's a quick summary: 📉 Repo Rate: Held steady at 6.5% for the 11th time, signaling continuity in the neutral stance. 📉 GDP Projection: Revised downward to 6.6% for FY 2024-25 from an earlier estimate of 7.2%, acknowledging the slowdown in Q2 growth (5.4%). 📉 CRR Cut: Reduced to 4% from 4.5%, injecting ₹1.16 lakh crore into the banking system—encouraging lending and fostering economic growth. 🏠 Sectoral Impact: Real estate developers and homebuyers will benefit from increased liquidity and stable borrowing costs. Banks gain lendable resources to support sectors critical for recovery. Inflation Control & Growth: While the near-term inflation outlook remains volatile, RBI's actions aim to balance disinflation goals with resilience in economic growth. 🔍 Other Highlights: Collateral-free agricultural loans hiked to ₹2 lakh per borrower. Framework for ethical AI use announced. Interest rates on NRI deposits increased to bolster the rupee. These measures reflect a strategic, balanced approach to tackling liquidity constraints while safeguarding growth and stability. 💬 What are your thoughts on this monetary policy? How do you see these decisions impacting industries and the economy at large? Let's discuss! #RBI #MonetaryPolicy #EconomicGrowth #Inflation #Banking