Wednesday's was the first MPC meeting that had a dissent note.
As the MPC is mandated to target CPI inflation rate at 4 plus minus 2 per cent, any measurement error in CPI is likely to have grave consequences for monetary policy.
'Fauji jo hain, woh desh sambhalta hain, border sambhalta hain, hum shehar sambhalte hain (Soldiers protect the country, the border, we protect the city).'
Ravindra Dholakia joins the board along with Gurcharan Das, former chief executive officer of Procter & Gamb#8804 Prem Vrat, vice-chancellor of ITM University of Gurgaon; Air Marshal K K Nohwar; and Renuka Ramnath, managing Director and CEO of private equity firm Multiples Alternate Asset Management.
The government on Tuesday appointed three external members -- Ram Singh, Saugata Bhattacharya and Nagesh Kumar -- to the RBI's rate-setting Monetary Policy Committee for four years. The central government has reconstituted the Monetary Policy Committee (MPC) of RBI, the finance ministry said in a statement. Ram Singh is the director of the Delhi School of Economics, Saugata Bhattacharya is an economist, and Nagesh Kumar is the director and Chief Executive, Institute for Studies in Industrial Development, New Delhi.
Economists and experts said on Tuesday the Union Budget presented by finance minister Pranab Mukherjee on Monday has not shown any fiscal prudence. They were speaking at a post Budget analysis session organised by the Confederation of Indian Industry in Ahmedabad.
Growth impulses, while improving, remain fragile, and a rate hike will be disruptive to interest costs.
Air India's financial and operational performance as part of its turnaround process came up for a review at the airline's Board meeting in New Delhi.
The government on Monday appointed three eminent economists Ashima Goyal, Jayanth R Varma and Shankanka Bhide as members of the rate-setting Monetary Policy Committee of the RBI
Chetan Ghate, Pami Dua and Ravindra Dholakia have been appointed for 4 years
The six-member monetary policy committee voted 5:1 for the decision, with only Ravindra Dholakia voting for a 0.25 per cent reduction in rates.
Chances of a rate cut in April improve if core inflation continues to ease, growth falling below the projected 7.2% for FY19 and if the global trade slowdown exacerbates.
Probably in August. We can argue whether RBI is dovishly neutral or neutrally dovish but the telltale signs of at least one more rate cut are strewn all over the policy statement, points out Tamal Bandyopadhyay.
A combination of farm loan debt waivers by state governments and the implementation of the pay commission award could entail some fiscal slippages and pose a risk to inflation
This is the fifth straight cut in rates by the Reserve Bank of India in as much policy reviews in 2019, and takes the total quantum of reductions to 1.35 per cent.
'Overall, domestic demand has moderated significantly. 'The weakening of private consumption, which for long has been the bedrock of aggregate demand, in particular, is a matter of concern,' RBI Governor Shaktikanta Das said in the MPC meetings, in October.
Political analysts say the Congress appears on the backfoot this time after one of its senior tribal leaders from the region joined the BJP, which has a stronghold in urban areas where civic bodies, leaders and the network required to win the election are firmly with the saffron party.
This time the all-powerful interest-rate setting panel, whose constitution was notified by the government on Thursday, will take call on interest rate. But that's not the only change. The Reserve Bank of India has also decided to change the timing of announcement of its policy review, due next Tuesday, to mid-afternoon.
North Block and Mint Road seem likely to now stick to the earlier convention of the RBI governor coming to Delhi and being the only MPC member meeting the finance minister and senior bureaucrats on pre-policy meetings
Pressure has been mounting on the Reserve Bank of India to cut interest rates in the wake of declining retail inflation and the need to fuel growth momentum. However, the RBI will have to do a tightrope walk as globally interest rates are inching upwards.
Instead of a rate hike, or even a pause, there could be a window for the RBI for an interest rate cut
Even while the union budget may not have announced many direct schemes for Gujarat, the state has been a major beneficiary under Prime Minister Narendra Modi's first 100 days in office.
An audit should determine whether a voluntary retirement scheme should be offered or staff redeployed or manpower strength slashed.
A five-member committee, headed by IIM-Ahmedabad's Prof Ravindra H Dholakia, was set up by Civil Aviation Minister Ajit Singh after a review meeting of the ailing national carrier's functioning.
'The no-rate cut policy and preference to wait for the Budget and clarity on the fiscal front demonstrate RBI Governor Shaktikanta Das is maturing in his new role,' notes Tamal Bandyopadhyay.
Although there is headroom for further monetary policy action, at this juncture it is important to keep our arsenal dry and use it judiciously: RBI's Das.
Deficits could come under more pressure in coming years as states implement their own Pay Commissions.
RBI in wait and watch mode as several risks to inflation continue to exist including a sudden reversal of food prices and oil price volatility.
Lower inflation, FCNR(B) outflows likely to influence central bank decision
Senior bureaucrats say the government has planned a 'feel-good' Budget after the 'pain' of demonetisation.
Das favoured shifting the stance of monetary policy from neutral to accommodative to send a clear signal, indicating that more measures could be taken in the near future to boost growth.
All-out efforts are needed to mitigate the adverse impact of the Covid-19 pandemic, and the RBI will use any instrument necessary to revive growth and preserve financial stability, according to the minutes of the central bank's policy meeting.
The fourth consecutive rate cut is expected to lower equated monthly instalments (EMIs) for home and auto buyers, and borrowing cost for corporate.
The 6-member Monetary Policy Committee, headed by Reserve Bank of India Governor Urjit Patel, in its fifth bi-monthly review, kept the repo rate unchanged at 6 per cent and reverse repo at 5.75 per cent.
RBI said at the current juncture, the all-out effort is to maintain and sustain, with the hope that when life is secure, resources, energy and time can be marshalled to rebuild and revive.
RBI governor Das flags growth slowdown, deputy raises alarm on inflation
Relations between the Mint Road and North Block have often been frosty, with the former's calls for lowering rates being the biggest point of difference
If banks cannot charge interest from borrowers during the moratorium, who will bear that cost? Should the depositors subsidise the borrowers by foregoing interest on deposits? In that case, we will turn banking on its head! notes Tamal Bandyopadhyay.
'I would have loved to see Dhoni play the first ever Test in Rajkot.' Fans from Saurashtra share their excitement with Haresh Pandya.
RBI said inflation in the second half of the current fiscal is projected at 2.7-3.2%. It retained its GDP forecast for the current fiscal at 7.4%
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