RBI Policy LIVE updates: Central bank cuts repo rate by 25 bps, maintains 'neutral' stance

04 Apr 2019, 12:00:15 PM IST

Projected CPI inflation for 2018-19 is revised to 4.7-5.1 percent: RBI

Projected CPI inflation for 2018-19 is revised to 4.7-5.1 percent in H1 FY19 and 4.4 percent in H2, including the HRA impact for central government employees, with risks tilted to the upside.

04 Apr 2019, 11:58:38 AM IST

GDP growth is projected to strengthen: RBI

RBI has said that GDP growth is projected to strengthen from 6.6 percent in 2017-18 to 7.4 percent in 2018-19.

04 Apr 2019, 11:58:38 AM IST

Four members of MPC was in favour of 'neutral' stance

Dr. Chetan Ghate, Dr. Pami Dua, Dr. Michael Debabrata Patra, Dr. Viral V. Acharya and Shaktikanta Das voted in favour of the decision to maintain the neutral stance of monetary policy.

Dr. Ravindra H. Dholakia voted to change the stance from neutral to accommodative.

04 Apr 2019, 11:51:06 AM IST

RBI maintains neutral stance

The MPC also decided to maintain the neutral monetary policy stance.

04 Apr 2019, 11:49:22 AM IST

RBI cuts repo rate

Central bank cuts repo rate by 25 bps

04 Apr 2019, 11:45:36 AM IST

If RBI cuts repo rate by 50 basis points

One among the ten economists was of the view that the MPC could go for a reduction of 50 basis points. A 50 basis points repo rate cut by RBI would mean that there is a higher room for the banks to reduce their interest rates.

04 Apr 2019, 11:43:21 AM IST

RBI Policy meet: Market's expectations

The market is expecting a cut in policy rates by 25 basis points ahead of the general elections, along with a change in policy stance to accommodative from neutral.

04 Apr 2019, 11:42:47 AM IST

RBI Policy meet: What economists are saying

Of the 10 economists and treasurers polled by Mint, nine expect the monetary policy committee to cut the benchmark repo rate by 25 basis points to 6%, as inflation continues to undershoot the central bank’s targeted trajectory and growth continues to be hit due to a global slowdown

04 Apr 2019, 11:41:55 AM IST

Rupee dips against US dollar ahead of RBI policy

Indian rupee weakened marginally against US dollar ahead of the key Reserve Bank of India's bi-monthly policy today due at 11.45 am. At 9.08 am, the rupee was trading at 68.54 a dollar, down 0.16% from its previous close of 68.43. The home currency opened at 68.54 a dollar.

04 Apr 2019, 11:41:13 AM IST

Will the MPC revise its growth target?

Declining growth is a matter of serious concern due to a fall in employment generation and slowdown in industrial activity. India’s gross domestic product (GDP) growth slowed to a five-quarter low of 6.6% in the December quarter and is expected to further slow to 6.4% in the March quarter. Bank treasurers and economists polled by Mint are unanimous in their view that the MPC will pare down their forecast to 7-7.25% for 2019-20. Goldman Sachs, however, believes there will be some pick-up in growth over the course of this year, and forecast real GDP growth to increase from 7.1% in 2018-19 to 7.5% in 2019-20.

04 Apr 2019, 11:40:01 AM IST

RBI's monetary policy aims to maintain price stability

The primary objective of RBI's monetary policy is to maintain price stability while keeping in mind the objective of growth. All rate decisions of the RBI with respect to the repo rate are data driven.

04 Apr 2019, 11:39:15 AM IST

What are the other miscellaneous policy developments that the RBI could announce?

The market will watch out for commentary from RBI governor Shaktikanta Das on the 12 February circular which was struck down by the Supreme Court, citing that the central bank acted beyond its powers. In the coming days, the RBI is expected to come out with new rules on debt restructuring framework. Any remarks on the dollar-rupee swaps that the central bank had announced to infuse liquidity into the market will also be closely watched. The market will also look for the governor’s comments on monetary policy transmission and whether enough has been done by banks to pass on the rate cuts.

04 Apr 2019, 11:38:39 AM IST

India's services sector output growth at six-month low in Mar: PMI

India's services sector activity eased in March with slowest pace of output growth in six-months due to a slower expansion in new work, leading to weakest rate of hiring since last September, a monthly survey shows. All eyes are on RBI policy now

04 Apr 2019, 11:36:36 AM IST

RBI should reduce the repo rate: CII

Director General of CII Chandrajit Banerjee said the inflation trajectory has remained benign which further warrants a reduction in interest rate.

"In view of the visible signs of a growth slowdown in the second half of 2018-19, it is requested that the RBI should reduce the repo rate by at least 25 basis points in the upcoming policy and maintain a softening trend in monetary policy," he said.

04 Apr 2019, 11:32:23 AM IST

It is likely that there could be another 25 basis-point rate cut later in the year: Kotak Mahindra Bank said

"It is likely that there could be another 25 basis-point rate cut later in the year, but that would be dependent on inflation and growth data. In addition, the central bank will keep an eye on the post-elections budget, monsoons and oil prices," PFB Shanti Ekambaram, President (Consumer Banking) at Kotak Mahindra Bank said

04 Apr 2019, 11:29:31 AM IST

Rate cut expected from RBI. How it could impact you

As a retail consumer, a falling rate impacts you in two different ways. If you are a depositor, the new deposits you make earn a lower rate and it means lower returns. However, as a borrower, a downward revision of interest rate would bring down your interest outgo in the near future. Mint decoded

04 Apr 2019, 11:28:26 AM IST

Inflation has remained within the RBI’s 4% target for over 6 months

The expectation of a rate cut is based on a lower inflation rate as well as slower growth in the economy. The consumer price index-based inflation has remained within the RBI’s 4% target for over 6 months and is further expected to remain within the target range at least for the next few months.

04 Apr 2019, 11:27:36 AM IST

RBI Policy meet: Five things to watch out for

The market is expecting a cut in policy rates by 25 basis points ahead of the general elections, along with a change in policy stance to accommodative from neutral. Mint takes a look at the five things that could be on the rate-setting committee’s radar. Read the full story here

04 Apr 2019, 11:26:01 AM IST

Will RBI tweak its growth forecast as well?

The central bank could also tweak its growth forecast in the April policy. RBI had projected GDP growth for 2019-20 at 7.4 percent.

04 Apr 2019, 11:25:09 AM IST

Economists calls for a more cautious outlook

Core inflation has remained above 5 percent, leading to economists calling for a more cautious outlook by the MPC

04 Apr 2019, 11:24:09 AM IST

RBI Feb 12 circular quashed. All eyes now on monetary policy

The Supreme Court on Tuesday quashed RBI's 12 February circular that had set strict norms for bad loan resolution. The RBI circular directed banks to refer defaulters to bankruptcy courts if they were unable to find a resolution plan within 180 days for stressed accounts where the outstanding amount was more than ₹2,000 crore. Read full story here

04 Apr 2019, 11:21:17 AM IST

Market update: Sensex struggles ahead of RBI policy announcement

Stock market benchmark Sensex struggled today while 10-year bond yields fell ahead of the RBI policy announcement. The Sensex was down about 40 points. The RBI is expected to cut rates for the second consecutive time this year, a Reuters poll showed. "Markets have already priced in a 25-basis-point cut, so now it will depend on the tone of the policy," said Neeraj Dewan, director with Quantum Securities. "If RBI cuts 25 bps and signals further rates cuts down the line this year, it would be seen as positive for the markets."

04 Apr 2019, 11:12:37 AM IST

Will the central bank change its stance?

RBI is also likely to announce a few measures to address the liquidity concerns. The street is also expecting a change in stance from neutral to accommodative in this policy.

04 Apr 2019, 11:10:46 AM IST

A back-to-back rate cut?

This will be the last RBI monetary policy announcement before the general elections in India. The six-member MPC headed by Governor Shaktikanta Das will probably reduce the repurchase rate by 25 basis points to 6 percent on Thursday. according to experts.

04 Apr 2019, 11:03:12 AM IST

RBI policy announcement schedule

The Monetary Policy Committee of the Reserve Bank of India will announce its first bi-monthly monetary policy statement for 2019-20 at 11.45 am. Thereafter, the top management of the RBI with the media. The interaction will be held from 12.00 noon to 12.45 pm. The top management of the RBI will also interact with researchers/analysts between 3 pm and 3.45 pm.