Softening inflation, Das said would make available more policy space to the central bank to address risks to the growth going forward.
Achieving inflation target of 4 per cent, recovery after remonetisation and hardening profile of oil prices are some of the risks which the RBI is watching closely, says Gaurav Kapur.
FY22 will be the year to rebuild with the IMF projecting output growth at 11.5 per cent, economic survey at 11.0 per cent and the RBI's Monetary Policy Committee at 10.5 per cent.
In the June quarter of FY24, 51 per cent of consumers who took small-ticket personal loans already had more than four credit products at the time of accessing yet another new loan, compared with just 17 per cent in the June quarter of FY20, points out Tamal Bandyopadhyay.
Deputy governors Subir Gokarn, Usha Thorat and Shyamala Gopinath will get additional portfolios, which were until now under K C Chakrabarty, RBI said in a statement today. The central bank did not give any reason for the reshuffle and said the changes will be effective tomorrow.
The Reserve Bank of India kept interest rates unchanged at 8.0 percent on Tuesday as widely expected, staying focused on containing inflation while adopting a more dovish tone in response to the government's call for help to revive economic growth.
'People know if inflation is not within the tolerance band, then action will be taken so they do not expect inflation to rise above that.'
Retail inflation softened to 6.71 per cent in July due to moderation in food prices but remained above the Reserve Bank's comfort level of 6 per cent for the seventh consecutive month. With retail inflation continuing to remain high despite a fall in prices of vegetables and edible oils, among other commodities in July, the Reserve Bank of India (RBI) might go for another rate hike in September. The Consumer Price Index (CPI) based retail inflation was at 7.01 per cent in June and 5.59 per cent in July 2021. It was above 7 per cent from April to June this fiscal.
RBI may revise remuneration for banks.
The US Federal Reserve has said economic activity is improving while deciding to continue with the near-zero interest rate regime to bolster the economy.
RBI may go for a 25-basis point cut at its February policy meet.
A CRR cut will help banks to reduce lending rates.
The Delhi high court on Friday sought the Enforcement Directorate's stand on a plea by Aam Aadmi Party leader Sanjay Singh against his arrest in a money laundering case related to alleged irregularities in the now-scrapped Delhi excise policy.
Rajan also said the outlook for agriculture is subdued, in view of both rabi and kharif prospects being hit by monsoon vagaries.
The Delhi high court on Friday refused to interfere with the 'malicious' arrest of Aam Aadmi Party leader Sanjay Singh by the Enforcement Directorate in a money laundering case related to the now-scrapped excise policy of the Delhi government, saying it cannot impute political motive to a 'premier' investigating agency in the absence of material on record. It also said Singh's was not a 'prima facie case of no evidence at all'.
A Delhi court on Friday dismissed the bail application of Aam Aadmi Party leader Sanjay Singh in a money laundering case related to the alleged Delhi excise policy scam.
'There are occasions when the prices of individual items like food raise inflation; then supply-side measures must be taken.' 'But if there is continued inflation, it means liquidity is aggravating the situation.'
Earlier, the RBI had imposed similar restrictions on commercial banks and NBFCs.
Will RBI chief have the final say, in the form of a veto
With the widespread use of new technologies, inter-connectedness and dependency, newer risks, threats and vulnerabilities have emerged.
RBI has, since January, cut its policy rate four times.
RBI's out-of-turn rate cut has surprise few economists.
RBI is scheduled to announce mid-quarter review of monetary policy for 2013-14 on June 17.
Wholesale price-based inflation eased to a nine-month low of 4.68 per cent in February, while retail inflation slowed to a 25-month low of 8.1 per cent.
The RBI guv said global economy is actually recovering, though slowly
They have also called for giving cash to the poor, so that demand is generated in the economy.
The Reserve Bank of India had taken steps to tighten liquidity in a bid to curb volatility in the forex market after the rupee fell to a record low of 61.21 to the dollar on July 8.
RBI Governor Raghuram Rajan wanted to improve training for staff, through initiatives such as sending them to other central banks for short stints.
The market direction will be guided by corporate earnings, especially the oil & gas companies, since they were responsible for earnings disappointment in the past quarter as well.
Are we adopting an idea whose time has come and gone? My feeling is, yes, says ex-banker C Joseph Chacko in the fourth article of the series on inflation targeting.
Encouraged by foreign exchange reserves touching record levels, the Reserve Bank on Tuesday doubled the annual overseas investment ceiling for individuals to $2,50,000.
According to D&B, food price levels might witness a rebound as foodgrain production is estimated to have declined during 2014-15.
'Election years tend to see high government expenditure on unproductive schemes, though that money sloshing around can boost private consumption.' 'Again, it can mean higher inflation,' explains Devangshu Datta.
The RBI expects CPI inflation to fall from 5.8% in Jan '16 to 4.8% in Jan-Mar '17.
SBI was the biggest loser in the Sensex pack, shedding 2.40 per cent, followed by Yes Bank, Bharti Airtel, L&T, Sun Pharma, M&M, ICICI Bank, ONGC, RIL, Asian Paints, Vedanta and HUL, which lost up to 2.37 per cent.
The message from the Reserve Bank of India is clear; interest rates are headed up.
Financials ended mixed despite the status-quo on key rates by the RBI. SBI, ICICI Bank and Axis Bank ended up 0.4-2.5% each.
In a move that may put pressure on housing and other consumer loans, Reserve Bank of India on Tuesday hiked its short term lending and borrowing rates by 0.25 per cent.
In a move that may put pressure on housing and other consumer loans, Reserve Bank of India on Tuesday hiked its short term lending and borrowing rates by 0.25 per cent.
Banks normally park almost 27 per cent of their funds in government securitie.
