RBI Policy Meet: What Should Investors Do? Today, the RBI decided to keep the repo rate steady at 6.5% for the tenth consecutive meeting, but the focus has shifted with the central bank changing its policy stance to 'neutral' from 'withdrawal of accommodation'. This signals a potential move towards easing, but with inflation risks still on the horizon. Key Takeaways: >>Repo rate unchanged at 6.5% >>GDP growth for FY25 stays at 7.2% >>Inflation forecast maintained at 4.5% What Should Investors Do? >>Stay on course with asset allocation: Market volatility or possible rate cuts shouldn't shake your long-term strategy. >>Focus on your financial goals: Don’t be swayed by short-term movements. Keep an eye on what matters—growing your wealth sustainably. >>Position for future rate cuts: With a rate reduction likely in early 2025, consider adjusting your fixed-income exposure accordingly. While the RBI signals potential easing in the coming quarters, staying disciplined in your investment approach will help you navigate any short-term uncertainties. 📌 Follow me Prashant Mishra for more such updates.
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The RBI's latest monetary policy decisions have sparked important changes in the banking and economic landscape. Here’s a quick breakdown of essential terms to help you understand their relevance in light of these developments: 1️⃣ Cash Reserve Ratio (CRR) 2️⃣ Repo Rate 3️⃣ Neutral Stance 4️⃣ GDP Growth Projection 5️⃣ UPI Credit for Small Finance Banks These terms not only reflect the technical aspects of monetary policy but also underline the RBI's strategic moves to balance liquidity, growth, and inflation. By understanding these concepts, we can better grasp the broader implications of the policy changes on our economy. 💡 Found this helpful? Share this post to help others simplify complex topics!" 📊 Need personalized stock analysis or economic insights for your portfolio? Let’s connect! #RBI #Monetarypolicy #Indianeconomy #Developments
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🎯 Key Takeaways from the RBI MPC Meeting – December 2024 🎯 🔹 Interest Rates: Repo Rate: Held steady at 6.5% (unchanged since February 2023) Monetary policy stance remains neutral. 📈 Economic Growth: FY25 GDP growth projection reduced to 6.6% (from 7.2%). Quarterly outlook: 6.9% (Q1) and 7.3% (Q2). 📉 Inflation Forecast: FY25: 4.8% Quarterly breakdown: 5.7% (Q3 FY25), 4.5% (Q4 FY25), 4.6% (Q1 FY26), 4% (Q2 FY26). 💡 New Initiatives: Mulehunter.AI: Leveraging AI to combat digital fraud. UPI Credit Expansion: Small Finance Banks now enabled to offer credit through UPI. 💬 The RBI strikes a balance between supporting growth, managing inflation, and driving innovation in the financial ecosystem.
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RBI Monetary Policy: Here are 5 key things to look for tomorrow 1. Repo Rate Unchanged: The RBI has maintained the repo rate at 6.5 percent since April 2023, indicating a continuation of the monetary policy stance without any adjustment in this round. 2. Monetary Policy Stance: The current stance of the RBI is towards the withdrawal of accommodation, suggesting a bias towards potential rate hikes rather than cuts. This stance is expected to remain unchanged, according to the majority of economists and bankers. 3. GDP Growth Projection: While the RBI had projected a GDP growth rate of 7 percent for FY25 in the February policy review, there's an expectation among experts that the central bank might revise this projection based on the surprise increase in the third quarter of FY24. 4. Inflation Target: Despite inflation being above the RBI's medium-term target of 4 percent, experts anticipate minor adjustments in the inflation forecast, particularly due to easing fuel and cooking gas prices. However, no significant lowering of the inflation target is expected. 5. Liquidity Measures: The RBI is likely to continue its fine-tuning of liquidity through repo and reverse repo auctions. Experts suggest that the central bank may prefer to micromanage daily liquidity positions without announcing advance measures to manage liquidity, indicating a continuation of current liquidity management strategies.
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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.
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RBI Holds Rates Steady- Key Updates from Monetary Policy Meeting https://lnkd.in/gybHeenZ #CentralBanking #MonetaryPolicyCommittee #InflationForecast #RBIMonetaryPolicy #InterestRates #EconomicOutlook #FinancialMarkets #RateCuts #PolicyUpdates #EconomicGrowth
RBI Holds Rates Steady Amidst Anticipation of Future Cuts: Key Updates from Monetary ...
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The RBI has announced its latest policy updates, and here’s what it means for all of us: Repo Rate Unchanged: This means loan interest rates are likely to stay steady for now. Good news if you’re planning to borrow! Focus on Inflation: RBI is keeping a close watch on prices to ensure they don’t go out of control. Boosting Liquidity: Measures have been introduced to make more funds available to banks, which could mean better access to loans and credit. In simple terms, the RBI is working to balance two key things—keeping inflation in check while ensuring there’s enough money flowing in the economy to support growth. What do you think of these moves? Do you see them affecting your finances or business? Let’s share our thoughts! #RBIUpdate #IndianEconomy #FinanceSimplified
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For those of you smoking h-opium you might be getting your wish that Fed rate cuts are coming. ECB just cut rates. What do you think it means for fed rate cuts this year? It feels like rate cuts are coming, June is starting to look more likely.. but no one knows. I still don’t think Fed rate cuts are going to “save” all of these distressed MF deals. Most of the floating rate bridge debt deals are too far underwater to be saved. What do you’all think?
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Growth and inflation balanced but a rap on the knuckles for shadow banks In the latest MPC review on 9th October , RBI held on to the benchmark rates while changing its stance to neutral from withdrawal in line with the market expectations. The commentary on inflation was quite benign with a caveat on risks emanating from global geopolitical conflicts and rise in commodity prices. Growth outlook remains stable with both investment and consumption doing well. Government capex has picked up after contraction in the first quarter with private investment also gaining steam on back of rising non-food credit and higher capacity utilisation. Manufacturing activity is gaining on back of improving domestic demand, lower input costs and supportive policy environment. A normal monsoon has supported agricultural growth and spurred rural demand while urban demand holds firm. So overall our economy is in a pretty idyllic situation with inflation under control and growth on track. The only thing putting spanner in the works for RBI is the burgeoning credit growth in the shadow banking system in the country with the regulator making a special mention of “ growth at any cost” approach of some of the players. It also mentions that the retail credit growth at times can be because of the “push effect” driven by business targets rather than its actual demand. The regulator flags it as a risk to financial stability and has warned the players to course correct wherever applicable. Now the market awaits for a rate action in the next MPC meeting on 4-6 December 2024.
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Bond market recap: 19 July Stay up-to-date with Harmoney’s Daily Newsletter. Here are quick highlights: • Long-term government bond yields were slightly lower due to caution ahead of the weekly guilt auction on Friday and the upcoming Union Budget for 2024-25. The 10-year benchmark bond yields ended at 6.97%, up from 6.96% on Tuesday. Turnover was ₹636.55 billion, close to Tuesday's ₹649 billion. • Corporate bonds mirrored government bonds, which rose slightly on hopes of U. S. rate cuts by September, increasing expectations of a domestic policy rate cut in December. The 3-year corporate bond yield fell around 3 bps in the secondary market as mutual funds actively bought papers. • The 10-year benchmark U. S. Treasury yield jumped 4.4 basis points to 4.19%. The interest rate-sensitive 2-year rates rose 3.4 basis points to 4.463%. The U. S. treasury yield curve steepened, and the yields eased intraday as increased unemployment claims reinforced the belief that the Fed would begin reducing interest rates in September. Know more here: https://lnkd.in/dSRdgCaZ #Harmoney #HarmoneyNewsletter #MarketTrends
Daily Newsletter - 19th July 2024
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