As it happened: RBI key policy meeting cuts repo rate. GDP predictions and more here
Business News | This was WION's comprehensive coverage of the RBI MPC meeting as the central bank announced its key monetary policy decisions.
The Reserve Bank of India (RBI) on Friday (Feb 2) held a key Monetary Policy Committee (MPC) meeting to announce its decision on India's benchmark repo rate.
In line with market expectations, the Reserve Bank of India's Monetary Policy Committee (MPC) cut the key repo rate by 0.25 per cent to 6.25 per cent. This is the first rate cut in nearly 5 years and signals a shift in the central bank's policy to aid economic growth. Before this move, the RBI had kept the repo rate steady at 6.5 per cent for 11 straight meetings. RBI also raised India's GDP growth projection to 6.7 per cent from the previous estimate of 6.6 per cent.
As it happened | WION's LIVE updates on the RBI Policy Meeting
In line with market expectations, the Reserve Bank of India's Monetary Policy Committee (MPC) cut the key repo rate by 0.25 per cent to 6.25 per cent. This is the first rate cut in nearly 5 years and signals a shift in the central bank's policy to aid economic growth. Before this move, the RBI had kept the repo rate steady at 6.5 per cent for 11 straight meetings. RBI also raised India's GDP growth projection to 6.7 per cent from the previous estimate of 6.6 per cent.
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According to RBI governor Sanjay Malhotra, for the year 2025, the real GDP predictions are:
Q1: 6.7 per cent
Q2: 7.0 per cent
Q3: 6.5 per cent
Q4: 6.5 per cent
Making a statement on Monetary Policy, RBI Governor Sanjay Malhotra says, "Reserve Bank has been taking various measures to enhance digital security in the banking and payments system. The introduction of an additional factor of authentication for digital payments is one such measure."
"It is now proposed to extend this to online international digital payments made to offshore merchants who are enabled for such authentication. Second, the Reserve Bank shall implement the 'http://bank.in' exclusive Internet domain for Indian banks. Registration for this domain name will commence from April this year. This will help avoid banking fraud. This will be followed by the 'http://fin.in' domain for the whole of the financial sector..."
The RBI governor has voiced serious concerns over the increase in digital fraud, urging stakeholders to take immediate action.
RBI Governor Sanjay Malhotra anticipates a decline in food inflation due to the upcoming harvest.
RBI Governor Sanjay Malhotra has urged banks not to passively park funds with the Central bank, but actively trade amongst themselves.
Banks to have exclusive domain name 'fin.In' to check cyber frauds, registration to start in April: RBI Guv.
RBI to set up a working group to review trading and settlement timing of regulated markets, says Governor Malhotra.
RBI projects inflation for FY'25 at 4.8 per cent, and FY'26 projection at 4.2 per cent.
RBI forex policy has remained consistent, in favour of orderly and stable market operation, does not target any exchange rate: RBI Governor.
It will be our endeavour to do stakeholder consultations and give importance to such consultations, says the RBI Governor.
RBI Governor Sanjay Malhotra during the MPC meet said that the Indian economy remains strong, though not immune to global challenges.
The rate-setting panel decides to continue with a 'neutral' monetary policy stance, says RBI Governor Sanjay Malhotra.
RBI estimates GDP growth in the next fiscal year at about 6.7 per cent.
The Reserve Bank of India cut its key interest rate by 0.25% to 6.25% on Friday to boost economic growth and consumer spending.
The cut comes in the first policy decision under new RBI governor, Sanjay Malhotra, after rates were kept on hold for eleven consecutive meetings.
Monetary Policy Committee (MPC) decides to reduce the policy rate by 25 basis points to 6.25 pc, says RBI Governor Sanjay Malhotra.
The Indian National Rupee (INR) recovered 16 paise to 87.43 against the US dollar in early trade on Friday, ahead of the Reserve Bank of India's monetary policy announcement.
Forex traders said there is an overall negative bias in the rupee as market participants are projecting RBI to cut rates by 25 bps.
At the interbank foreign exchange, the rupee opened at 87.57 against the greenback and touched 87.43 against the greenback in initial trade, registering a rise of 16 paise from its previous close.
On Thursday, the rupee plunged 16 paise to close at an all-time low of 87.59 against the US dollar.
The expected rate cut is to revive the flagging economy, which has seen growth hit a four-year low. This move will come under new governor Sanjay Malhotra's first monetary policy review.
Shilan Shah, deputy chief emerging markets economist at Capital Economics, told Reuters, "With the finance ministry still keeping the overall fiscal deficit in check, there is scope for the RBI to do more to boost the economy." He added, “This strengthens our conviction that the bank – under new leadership - will begin easing monetary policy...on Friday."
The Reserve Bank of India is widely expected to cut interest rates for the first time in nearly five years. This is according to a Reuters survey of economists and analysts. Inflation in India has declined; however, it remains above the RBI's medium-term target of four per cent.
The NSE Nifty 50 and BSE Sensex were trading almost flat early on Friday (Feb 7) ahead of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting to announce its decision on India's benchmark repo rate.
