RBI monetary policy review highlights: Indian economy is resilient: Governor Das

Updated on Dec 07, 2022 01:16 PM IST

RBI Monetary Policy Meet highlights: The Monetary policy committee (MPC) of the Reserve Bank of India (RBI) announced its policy review today. The bi-monthly meeting which started on Monday is keenly watched by the financial market.

RBI Monetary policy review: Reserve Bank of India (RBI) Governor Shaktikanta Das to give policy statement.
RBI Monetary policy review: Reserve Bank of India (RBI) Governor Shaktikanta Das to give policy statement. (PTI file photo)

RBI MPC Meet highlights: The Reserve Bank of India (RBI) on Wednesday hiked the policy repo rate - for a fifth consecutive time - by 35 basis points to 6.25%. The key interest rate has been hiked a total of 190 basis points - by 50 basis points thrice since June and once - by 40 basis points - during an off-cycle meet in May. The central bank increased the rate after inflation continues to stay above its tolerance band.

 Governor Shaktikanta Das, delivering the Monetary Policy Committee (MPC) announcements, also said the FY23 real GDP forecast had been lowered to 6.8% - 0.1% lower than revised estimates released Tuesday by the World Bank. In addition, the RBI has also maintained FY23 consumer price index (CPI) inflation forecast at 6.7% and Das said he expects inflation to moderate as the winter harvest comes in. 

The RBI chief hailed the Indian economy's performance in the face of global challenges like the war in Ukraine and the Covid-19 pandemic, and underlined that it is the fastest growing in Asia this year.

Follow all the updates here:

  • Dec 07, 2022 12:48 PM IST

    Satisfactory feedback from the wholesale CBDC pilot: RBI Governor

    Governor Shaktikanta Das said that feedback from wholesale Central Bank Digital Currency (CBDC) pilot has been very satisfactory.

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    E-Rupee is money: Deputy Governor T Rabi Sankar on difference between UPI and Digital Rupee

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  • Dec 07, 2022 12:23 PM IST

    Our decision is not based on US's Fed: RBI Governor

    "The US Fed’s terminal rate is important for the whole world. But our policies are primarily determined by domestic factors. We don’t look at the Fed’s decision and then take our decision," RBI Governor.

  • Dec 07, 2022 12:13 PM IST

    RBI Governor illustrates Monetary policy review key takeaways

    RBI Governor Shaktikanta Das (Screengrab/ RBI)
    RBI Governor Shaktikanta Das (Screengrab/ RBI)
    1. Indian GDP growth is holding on
    2. Worst of Inflation is behind us
    3. But we have be extremely watchful
    4. RBI ready to undertake liquidity operations to inject liquidity, but will for durable signs of turn in liquidity cycle
    5. Indian Rupee resilient and stable, focus on orderly evaluation of exchange rate
    6. Forex exchange reserves has gone up by USD 36.7 Billion
  • Dec 07, 2022 11:53 AM IST

    MPC post policy media briefing to begin at 12:00 pm

    RBI Governor Shaktikanta Das, after announcing the rates, will take up questions.

  • Dec 07, 2022 11:23 AM IST

    Experts term the hike a welcome move

    The RBI has been extremely judicious in their decision to raise repo rate by 35 bps as against the previous revisions, which were much sharper. The move is a balanced approach towards continued economic growth despite the higher than tolerance level of inflation, says Shishir Baijal, Chairman & Managing Director, Knight Frank India.

    He adds, since the rate hike cycle in May 2022, home loan products have become expensive by around 150 bps before today’s hike. The lending rates have risen significantly, especially for the loans linked to External Benchmark based Lending Rate (EBLR) where there has been a 100% transmission of repo rate. Loan products linked to MCLR rate are also up by around 108 bps during this period.

    The 35-bps rate hike by the RBI may be considered moderate in the current context and therefore considered a welcome move, he states.

  • Dec 07, 2022 11:18 AM IST

    RBI’s 35 bps rate hike won't rock housing boat: Expert

    With repo rates now at 6.25%, there may be some repercussions on housing uptake. This hike will undoubtedly push up home loan interest rates, which had already crept up after four consecutive rate hikes this year, says Anuj Puri, Chairman – ANAROCK Group.

    He adds, however, as long as interest rates remain in single digits (mainly within 9.5%) the impact on housing will at best be moderate. If they breach this point, we will see some real pressure on residential sales volumes in the months to come – especially in the affordable and lower mid-range housing segments.

  • Dec 07, 2022 11:09 AM IST

    RBI policy review impact: Rupee strengthens against dollar

    The Indian rupee rose against the dollar and forward premiums inched up on Wednesday after the Reserve Bank of India (RBI) raised rates by 35 basis points (bps) and said that inflation risks remained. It stood at 82.54 per U.S. dollar by 11:07 am compared with 82.53 before the RBI's policy decision.

  • Dec 07, 2022 11:04 AM IST

    Indian Rupee performing well compared to other major currencies: RBI Governor

    The Indian rupee has appreciated by 3.2% during April-October in real terms, while other major currencies have depreciated: RBI Governor Shaktikanta Das

  • Dec 07, 2022 11:02 AM IST

    India's forex reserve size comfortable: RBI Governor 

    Forex reserves stand at $561.2 billion as on December 2. The size of our forex reserves is comfortable and has increased: Reserve Bank of India Governor Shaktikanta Das

  • Dec 07, 2022 10:58 AM IST

    The main risk was that inflation would remain sticky and elevated: RBI Governor Shaktikanta Das

    RBI governor Shaktikanta Das. (HT Photo/Vipin Kumar)
    RBI governor Shaktikanta Das. (HT Photo/Vipin Kumar)

    Despite some signs of moderation, RBI Governor Shaktikanta Das said the main risk was that inflation would remain sticky and elevated.

    "The MPC was of the view that further calibrated monetary policy action was warranted to keep inflation expectations anchored, break core inflation persistence and contain second round effects,” Das said as he announced the monetary policy committee's decision.

    "The focus on inflation control continues. There will be no let up in our efforts to bring inflation to more manageable levels," he added. Read more…

  • Dec 07, 2022 10:44 AM IST

    We see possibility of another 25 bps rate hike, says Kotak Mahindra Bank's Chief Economist

    "The MPC delivered the 35 bps hike as expected while retaining the stance as 'withdrawal of accommodation.' We continue to expect the focus of MPC to remain in a watchful mode as uncertainties on inflation settle down. We see a possibility of another 25 bps rate hike before a prolonged pause." Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank.

  • Dec 07, 2022 10:41 AM IST

    Expert says RBI's decision along market lines

    “RBI’s decision was along market lines,” said Rahul Bajoria, an economist at Barclays Plc. “The step down in magnitude of hikes signals greater comfort with inflation outlook, but not enough to shift gears to neutral.”

  • Dec 07, 2022 10:38 AM IST

    RBI Governor hints more interest hike coming ahead

    RBI would look at data and take policy action accordingly; liquidity condition likely to improve in coming months. Battle against inflation yet not over as risks remain; RBI's action to remain nimble in best interest of economy, says Das.

  • Dec 07, 2022 10:34 AM IST

    RBI Governor expects liquidity conditions to improve ahead

    “Will look for durable signs for turn in liquidity cycle for infusing liquidity. BI remains nimble and flexible in its liquidity management operations. So, even though the RBI is in absorption mode, we are ready to conduct LAF operation that inject liquidity as may be needed. We will look for a durable sign of a turn in the liquidity cycle. Market participants must wean themselves away from overhang of liquidity surpluses,” RBI Governor.

  • Dec 07, 2022 10:32 AM IST

    India to be fastest growing Asian economy: RBI Governor

    RBI Governor Das expected inflation to be moderate as winter harvest arrives in. He added that Indian economy is going to be fastest growing in Asia this year.

  • Dec 07, 2022 10:26 AM IST

    Domestic markets remain unaffected by RBI's policy review

    Indian shares were largely unchanged on Wednesday, after the country's central bank hiked key interest rate, as expected, amid expectations that inflation has likely peaked. The Nifty 50 index was up 0.02% at 18,646.65, as of 10:05 am IST, and the S&P BSE Sensex rose 0.08% to 62,678.57.

  • Dec 07, 2022 10:19 AM IST

    Battle against inflation not over: RBI Governor

    We will keep Arjuna's eyes on the evolving inflation dynamics, says RBI's Das.

  • Dec 07, 2022 10:15 AM IST

    SDF rate increased to 6.00%, MSF rate at 6.50%

    The standing deposit facility rate and the marginal standing facility rate were also increased by the same quantum to 6.00%and 6.50%, respectively.

  • Dec 07, 2022 10:14 AM IST

    RBI hike in line with experts prediction

    A strong two-thirds majority in a Reuters analysts poll had predicted a 35 bps increase, smaller than its last three hikes of 50 bps each, and said it was still too soon for the central bank to take its eye off inflation, which has stayed above the upper end of the RBI's 2-6% tolerance band all year.

  • Dec 07, 2022 10:09 AM IST

    Global food, energy prices have moderated recently. Fragmentation in trade, finance, technology adding to de-globalisation: RBI Governor

    Global food, energy prices have moderated recently. Fragmentation in trade, finance, technology adding to de-globalisation: RBI Governor

  • Dec 07, 2022 10:05 AM IST

    RBI Governor announces increase in interest rate by 35 basis points, fifth time in the 

    RBI Governor announces increase in interest rate by 35 basis points.

  • Dec 07, 2022 10:02 AM IST

    RBI Monetary policy review LIVE: Governor Shaktikanta Das begins MPC statement

    RBI Monetary policy review LIVE: Governor Shaktikanta Das begins MPC statement.

  • Dec 07, 2022 10:01 AM IST

    Ahead of RBI policy review, markets open flat

    Sensex opens at 62,615, Nifty at 18,638.

  • Dec 07, 2022 09:59 AM IST

    Experts expect rate hike

    “The RBI’s December policy meeting will likely see the MPC hiking repo rate by 35 bps; lower than the last three hikes of 50 bps. However, the decision is unlikely to be unanimous," said Suvodeep Rakshit, Chief Economist, Kotak Institutional Equities.

  • Dec 07, 2022 09:54 AM IST

    RBI Governor Shaktikanta Das to begin addresss at 10 am

    Reserve Bank of India's Governor Shaktikanta Das to begin addresss at 10 am.

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