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RBI Monetary Policy Committee maintained a status quo on the repo rate and stance. The six-member committee of the central bank, with a majority of 4:2, decided to keep the benchmark repo rate unchanged for the eighth consecutive time. The MPC also decided to continue its stance of ‘withdrawal of accommodation’. RBI governor’s speech emphasized easing inflation and firming economic growth while food inflation remains a cause of concern. While keeping CPI inflation projections unchanged from previous monetary policy, RBI raised GDP projections. One important thing RBI Governor stated in the speech was, ‘While the RBI keeps a watch on the impact of monetary policy in advanced economies, RBI will act according to the domestic growth-inflation conditions and the outlook.’ Market mood uplifted post Monetary Policy announcement! Sensex crossed 76,000 while Nifty crossed 23,000 level, as GDP growth projection revised to 7.2% from 7.0% earlier. Bank Nifty is up by 1%+ following remarks of RBI governor on sound and resilient banking system and strong financials by NBFCs. #RBIMonetaryPolicy #NineStarBroking #FinanceUpdates

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

RBI MPC meeting live updates: RBI keeps repo rate unchanged at 6.5%, cuts CRR to 4%, RBI Monetary Policy Meeting LIVE: The Reserve Bank of India’s (RBI) announced its fifth bi-monthly monetary policy of FY25, today, December 6. The six-member Monetary Policy Committee (MPC) led by RBI Governor Shaktikanta Das decided by a 4 to 2 majority to keep the benchmark repo rate unchanged at 6.5% for the eleventh straight meeting, and maintain the monetary policy stance ‘Neutral’ and to remain unambiguously focused on a durable alignment of inflation with the target, while supporting growth. Moreover, the rate setting panel slashed the cash reserve ratio (CRR) by 50 basis points (bps) to 4%.

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

Key Decisions By Monetary Policy Meeting RBI: ✅️The policy repo rate remains unchanged at 6.50% under the liquidity adjustment facility (LAF). ✅️The standing deposit facility (SDF) rate stays at 6.25%, and the marginal standing facility (MSF) rate and Bank Rate are steady at 6.75%. ✅️The MPC decided to maintain a neutral monetary policy stance, aiming to keep inflation under control while promoting growth. ✅️Real GDP growth is projected at 6.6% for 2024-25, with Q3 at 6.8%, Q4 at 7.2%, and for H1 2025-26 at 6.9% (Q1) and 7.3% (Q2). ✅️CPI inflation for 2024-25 is projected at 4.8%, with Q3 at 5.7%, Q4 at 4.5%, and for H1 2025-26 at 4.6% (Q1) and 4.0% (Q2). ✅️The MPC announced a 50 basis points reduction in the Cash Reserve Ratio (CRR), bringing it down to 4%. #RBI #MPC #GDP #Inflation #monetarypolicycommittee #crr #ratecuts #growth #stockmarket #banking #funds

The RBI has kept the repo rate unchanged at 6.5%, shifting its stance to "neutral." This decision reflects caution over inflation risks but opens the door for future rate cuts, especially with signs of economic slowdown. The real estate sector awaits further developments for growth. #linkdine #share #market #finance #economy #business #banking

Why does the RBI constantly play with the repo rate? Have you ever wondered why the repo rate isn't a fixed percentage but always fluctuating data? Well, it's all about maintaining a low and stable level of inflation, which is crucial for an economy to grow. Imagine an economy with high inflation. This means there's a surplus of money circulating among the public, businesses, and government, leading to increased spending and lower savings. But what's fueling this surplus? Low-interest loans! When banks offer loans at low rates, it's encouraging for everyone to borrow, flooding the economy with cash and driving prices up. So, how does the repo rate come into play here? The RBI steps in by raising its repo rate. This hike makes it costlier for banks to borrow from the RBI, and they, in turn, pass this increased cost to customers by raising interest rates. Higher rates encourage saving and discourage excessive borrowing, effectively reducing the money supply. From 2022 to 2023, the RBI steadily increased repo rates to absorb excess money from the economy and bring inflation back into its target range of 4 to 6%. So this is how central banks control inflation in an economy with the help of monetary policy. LinkedIn LinkedIn Guide to Creating #economy #MonetaryPolicy #rbi #Inflation #finance #linkedinforcreators

The RBI has kept the repo rate unchanged at 6.5% in its October 9, 2024, meeting. This marks the tenth straight meeting without a rate change, as the bank remains cautious due to inflationary pressures and external factors like rising crude oil prices Positive Impact: 1.Borrowing costs remain stable, benefiting consumers and businesses. 2.Inflation is kept in check, preventing further price increases. 3.Provides economic stability by avoiding abrupt monetary policy changes. Negative Impact: 1.No cheaper credit for businesses seeking growth opportunities. 2.Slows economic stimulus as lower rates could have boosted spending. 3.Could lead to short-term negative sentiment in stock markets.

👨💻RBI Policy Details👨💻 🟢 RBI Keeps Repo Rate Steady at 6.5% 📊 The RBI has left the repo rate unchanged at 6.5%* while shifting its stance from "withdrawal of accommodation" to "neutral." This indicates that the central bank is now focused on balancing inflation control with economic growth._ 📈 Impact on Stock Market The stock market rallied even though there was no rate cut, showing positive sentiments. Steady interest rates due to low inflation have shown good signs for the economy. 🗓️ Chance of Rate Cut in December If inflation continues to moderate and global risks ease, there is a possibility of a rate cut in December. The RBI's neutral stance allows for flexibility in future rate decisions based on economic conditions. 💸 Interest Rates and Markets When interest rates are high, borrowing costs rise, often slowing markets. Lower rates make borrowing cheaper, boosting market activity.

RBI's Repo rate unchanged for 7th time? Repo Rate:- >> The interest rate at which the Reserve Bank lends money to banks against the collateral of government and other approved securities under Liquidity Adjustment Facility (LAF). >> It is also the benchmark policy rate. Monetary Policy Committee:- >> The monetary policy committee is a statutory and institutionalized framework under the Reserve Bank of India Act, 1934, for maintaining price stability, while keeping in mind the objective of growth. >> MPC consists of 6 members. Out of 6, 3 members are from RBI and 3 are appointed by the government. >> Governor of RBI is ex-officio Chairman of the committee. >> The MPC determines the policy interest rate (repo rate) required to achieve the inflation target. >> An RBI-appointed committee led by the then deputy governor Urjit Patel in 2014 recommended the establishment of the monetary policy committee. RBI MPC Meeting 2024 Highlights:- The RBI decided to keep the key policy repo rate unchanged at 6.5% in its April.