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Rate = Unchanged Recently, the RBI had announced that the rate will continue to be maintained 6.5 %. It has remained the same way for the last 22 months. But the real question, Why should we even bother when some economic rates at the macroeconomic level are being adjusted ?? Well, this has a trickle down effect - Rate, in this case, refers to the Repo rate. This is the rate at which commercial banks borrow money from the central bank. The central bank uses repo rate as the ultimate tool to control and sail past the economic cycles. In case of inflation where the prices are skyrocketing and there's too much money in flow, the central bank increases the rates. This in turn, increases the interest rates of borrowings. This discourages corporates and even the people at a retail level to reduce borrowings. So on an overall level the spending and the money flow decreases. This has a negative impact on the prices of stocks and the market most likely falls. On the other hand the yield on bonds, government securites, other debt instruments and even prices of gold for that matter, increase. Similarly, when the market is red and the economy is going through a recession, the central bank cuts the rate to stimulate spending and liquidity in the system. Interest rate on loans become cheaper and credit can be availed easily. Markets welcome this decision, and the bond yields fall. ➡️ This also highlights the inverse relation between bonds and equity. As the rate hike happens the money is transferred from one market to another - in simple terms - transferred to the market which gives better returns. However, in reality it is the anticipation of a rate cut/hike that triggers the market's movement rather than the actual announcement. ➡️ Therefore, the changes in the rate made by RBI affects everything, right from the EMI that we pay, to the FD rates that people go after. To put in a capsule, Repo rate inversely impacts the markets. ➡️ Increase in rate, stocks fall ➡️ Decrease in rate, stocks rise Follow Naren S #economics #ca #rbirate #market #stocks

🟢 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 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 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.

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'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

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%.

NO CHANGE is expected in Repo rate in RBI MPC meeting on 5th-7th June... _Foreign banks expect the RBI’s 6-member Monetary Policy Committee (MPC)_ to *maintain status quo on interest rates* in the upcoming June 5-7 monetary policy meeting, while *remaining cautious on inflation.* RBI will probably retain its *inflation forecast at 4.5%* and *GDP growth forecast at 7%* for FY2024-25,

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

RBI #Monetary Policy: Here are 5 key things to look for tomorrow The central bank has kept the repo rate unchanged at 6.5 percent since April 2023 MPC. Here are five things to watch out for in the RBI monetary policy on April 5. Monetary policy stance The RBI's policy stance indicates the thinking within the MPC, the rate-setting panel. Currently, its stance is of withdrawal of accommodation. ⭐️Repo rate The repo rate, at which the central bank lends short-term funds to banks, stands at 6.5 percent. The central bank has kept it unchanged since April 2023. ⭐️Monetary policy stance The RBI's policy stance indicates the thinking within the MPC, the rate-setting panel. Currently, its stance is of withdrawal of accommodation. ⭐️GDP growth target In the February policy review, the RBI projected GDP growth of 7 percent for FY25. ⭐️Inflation target The inflation print in February was far above the central bank’s medium-term target of 4 percent. According to the RBI's latest forecast, retail inflation is seen at 5.4 percent for FY24, with Q4 at 5 percent. ⭐️Liquidity measures Experts are of the view that the central bank may continue to maintain the finetuning of liquidity through repo and reverse repo auctions.