Saurav Das’ Post

"Announcement of RBI's Monetary Policy" ✍ RBI Governor said the repo rate has been kept unchanged to continue with the neutral stance of the policy and to monitor outlook on inflation and growth. ✍ The GDP growth projection for the FY 2025-26 is projected at 6.6%. ✍ The Cash Reserve Ratio (CRR) has also been reduced to 4 per cent from 4.5 percent. CRR is a tool used by RBI to manage inflation and curb excessive lending. #news #rbi #monetarypolicy #reporate

Repo rate remains unchanged by RBI as on yesterday post MPC meet. However Cash Reserve Ratio has been reduced to 4% from 4.5% to meet the liquidity demands in the market, basically to improve lending and allowing banks to earn interest income. While the core inflation excluding food is said to be below 4.5% , it can be expected that a 25 bps cut will materialize in the next MPC meet. However, as I stand on my ground that interest rates are just tools of the RBI to manage money circulation in the market to balance growth and inflation. It has nothing to do with human capital development, ease of business or living conditions of citizens. Consumption cannot be driven by interest rate cuts alone. That is the responsibility of the government to come up with policies that cuts government spending on unnecessary assets and put the revenue receipts to the right use. RBI cannot provide a solution more than a rate cut probably in the next MPC but government has a 1000 things to ensure the consumption or house hold savings pick up in the economy again. #MPC #CRR#Repo#RBI#Consumption

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

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,

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 keeps repo rates unchanged at 6.50% for the eleventh consecutive meeting in December 2024. 🔔 MPC decided by a majority of 4 out of 6 members to keep the repo rate unchanged, with a Neutral stance. ✅ RBI cuts cash reserve ratio by 50 bps to 4% in two tranches of 25 bps each ✅ GDP growth projected at 6.6% in FY25 against earlier projection of 7.2% ✅ Inflation for FY25 projected at 4.8%, against earlier projection 4.5%. ✅ RBI raised interest rate ceilings on FCNR-B deposits by 400 bps from 200 bps #India #USDINR #INR #MPC #RBI #RepoRate #CRR #Policy #Interestrates #Forex #Government

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.

RBI Maintains Repo Rate at 6.5% for the 10th Time: Key Takeaways from the Latest Monetary Policy | FinBrook - #RBIMonetaryPolicy #RepoRate #IndiaEconomy #InflationControl #FinancialStability #EconomicGrowth #ShaktikantaDas #InterestRates #NBFCs #ConsumerProtection

RBI Maintains Repo Rate at 6.5% for the 10th Time: Key Takeaways from the Latest Monetary Policy | FinBrook - #RBIMonetaryPolicy #RepoRate #IndiaEconomy #InflationControl #FinancialStability #EconomicGrowth #ShaktikantaDas #InterestRates #NBFCs #ConsumerProtection https://go.shr.lc/3YgrmGr

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