RBI keeps interest rates unchanged on inflation risks
The Dollar Business Bureau The Reserve Bank of India (RBI), in its sixth bimonthly Monetary Policy Committee meeting, on Wednesday kept the repo rate unchanged at 6%, while hinting on tight monetary conditions due to rising inflation risks. The Bank also increased the Consumer Price Index (CPI) inflation forecast for March-end to 5.1% and estimated that inflation would be in the range of 5.1-5.6% in the first six months of the next fiscal. “On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6%,” RBI said in a statement. “Consequently, the reverse repo rate under the LAF remains at 5.75%, and ...
RBI ups inflation forecast to 4.2-4.6%, keeps repo rate unchanged
The Dollar Business Bureau The Reserve Bank of India (RBI) on Wednesday raised its retail inflation forecast to 4.2-4.6% for the second half of 2017-18 owing to the firming international prices of oil and uncertainty on the farm output of the kharif crop. In August, in its last monetary policy review, the Central Bank had predicted the Consumer Price Index (CPI)-based retail inflation to be between 4-4.5% in the second half of current fiscal. “The inflation path for the rest of 2017-18 is expected to be shaped by several factors," the bank said in its fourth bi-monthly monetary policy statement 2017-18. As it sees inflation risks, the monetary policy committee (MPC) of RBI also kept the key lending rates – ...
Economy in the week gone by: GDP growth for FY17 at 7.1%; Domestic iron ore prices remain high; Policy rates on hold
By Abin Daya The oil situation is more fluid than the fuel itself, despite all the efforts of OPEC and non-OPEC producers. While the extending of the supply cut was to have provided some stability to prices, this does not seem to be the case. Prices of India’s basket of crude have dropped to their lowest levels in 28 weeks. And with the strengthening of rupee, this seems to have given RBI ample opportunities to shore up its FX reserves, which are currently at $381Bn, more than a year’s import worth. The only thing missing here is the drop-in retail fuel prices. Hopefully, it will happen soon. The Provisional Estimates of full year and Q4 GDP and GVA numbers were released on ...
'Government to take final view on Financial Code after consultation'
Source: PTI The government will consult stakeholders including the Reserve Bank before firming its views on a draft bill that seeks to limit the central bank's authority in setting interest rates. Finance Minister Arun Jaitley said the government will take a view on the revised draft of the Indian Financial Code -- which favours creation of an interest rate-setting panel where a majority (out of its 7 members) is nominated by government -- only after receiving comments from stakeholders. The Chief Economic Adviser Arvind Subramanian has already dubbed the IFC draft as merely a FSLRC report, not reflecting government views. "FSLRC has made its recommendations, which have been made public for comments. After the comments are received, it is only then that ...
