Ahead of the much-talked about stimulus package to be announced this weekend, RBI governor D Subbarao said on Thursday the central bank will ensure continuous flow of credit to all productive sectors. Noting that a period of painful adjustment is inevitable, he said, "We hope that all the economic agents will plan their business activities on the basis of this assurance (comfortable liquidity flow will be maintained)."
Earlier, while announcing the Budget, finance minister Pranab Mukherjee projected the government borrowing in 2009-10 at Rs 4.5 lakh crore. "The RBI will ensure that the needs of the productive credit will be met. . . we are reviewing the situation and will use available instruments to conduct the borrowing programme in a non-disruptive manner," RBI deputy governor Shymala Gopinath told reporters in Mumbai.
Former Indian Prime Minister Manmohan Singh passed away on Thursday night at the age of 92. He was brought to the emergency department of AIIMS Delhi in critical condition after "sudden loss of consciousness."
The RBI has also increased the saving bank rate by 50 basis points to 4 per cent to give higher returns to depositors in the wake of high inflation.
The central bank also asserted that the country is ready for the tapering of the US Federal Reserve's bond purchases.
The Reserve Bank of India (RBI) on Friday kept key repo rate unchanged at 4 per cent in view of rising inflation and faint signs of economic growth amid gradual lifting of coronavirus (COVID-19) lockdown. The central bank's newly-constituted monetary policy committee (MPC) began its three-day meeting on October 7 and maintained the stance as accommodative. It also kept the reverse repo rate unchanged at 3.35 per cent.
Enthused by the high 8.4 per cent growth in the second quarter, the Reserve Bank of India on Wednesday revised upwards the economic growth for 2003-04 at 7 per cent.
Making a case for raising prices of diesel, kerosene and LPG, the Reserve Bank on Tuesday said hike in rates of petroleum products is necessary to arrest fiscal slippages.
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Industry's demand for a reduction in the repo rate, currently 8 per cent, has gained momentum after wholesale and retail inflation eased in February.
Allocation to bank deposits -- fixed deposits, savings account deposits, and current account deposits -- came down.
Despite steady loan growth, the banking sector is expected to report subdued margins in the quarter ending June 2024 (Q1FY25), driven by high demand for deposits amidst tight liquidity conditions. However, according to Bloomberg analysts, listed banks are forecasted to see a 14.5 per cent year-on-year (Y-o-Y) increase in net profit. Estimates showed that banks' net interest income (NII), and revenues from interest minus interest expenses might grow 11.9 per cent Y-o-Y.
'Data-dependence means you can raise or drop rates. The present stance is only for raising rates.'
Reserve Bank of India will announce the Monetary and Credit Policy for 2003-04 on April 29.\n\n\n\n
Reserve Bank of India has kept options open for a possible repo rate cut but said there was no "great urgency" for slashing it from the present level of 5.0 per cent.
The central bank says that there is room for policy action, but warns of persistent inflation risks.
The Reserve Bank on Friday said the agriculture growth will be muted this fiscal on account of the impact of poor monsoon on kharif crops.
Lower inflation, FCNR(B) outflows likely to influence central bank decision
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
The need to maintain people's confidence in digital banking resulted in the action against HDFC Bank for service outages, RBI Governor Shaktikanta Das said on Friday and exhorted lenders to invest more on the technology front.
At a time when inflation is hovering around 6 per cent, Reserve Bank on Friday said that a 5 per cent inflation this year is "certainly possible" and that India is likely to be "less affected" by global imbalances.
The Reserve Bank on Thursday said the country's wholesale price-based inflation and industrial production data should be improved and employment data availed for effective monetary policy management.
The macro-economic developments in the Indian economy, by and large, have been on expected lines and there is some continuing pressure on inflation.
Faced with the challenging task of balancing growth and inflation, the Reserve Bank of India will take measures in its quarterly review later this month to perk up the economy and to control inflation, which rose to 0.83 per cent for the third week of September.
RBI sees marginal improvement in economic growth to 5-6%.
The Indian economy continues to sustain the momentum achieved in the first half of 2023-24 and expectations of a fresh round of capex by the corporate sector is likely to fuel the next leg of growth, the Reserve Bank Bulletin said on Tuesday. "The likelihood of the global economy exhibiting stronger than expected growth in 2024 has brightened in recent months, with risks broadly balanced," said an article on 'State of the Economy' published in the bulletin.
The Reserve Bank of India on Friday said fiscal deficit situation would be better than the budget estimate of 5.6 per cent of GDP for 2003-04, while inflation rate will start falling in the coming days.
The RBI governor most famous oneliners -- 'I am Raghuram Rajan and I do what I do' -- that eventually summed up the year 2015 for the central bank
With inflation under control, the Monetary Policy Committee's (MPC's) job is to support growth because the economy had recovered well from the lows in the initial months of the pandemic, according to the panel's members, who met in the first week of this month. The minutes of the meeting show the Reserve Bank of India (RBI) governor in his statement said: "Given the sharp moderation in inflation along with a stable near-term outlook, monetary policy needs to continue with the accommodative stance to ensure that the recovery gains greater traction and becomes broad-based." Ashima Goyal, external member of the MPC, said: "The current macroeconomic configuration and its expected future evolution imply there is space for the MPC to continue to support the revival of the economy with inflation remaining in the target band."
The majority view remains for the central bank to leave the cash reserve ratio unchanged at 4 per cent.
