The Reserve Bank of India on Wednesday left the key repo rate unchanged at 6.25%. The reverse repo rate also remains unchanged at 5.75%. The RBI governor Urjit Patel presented the monetary policy review in the midst of the demonetisation drive on Wednesday. This decision came as a shock against speculations by a majority of analysts, who had predicted that the RBI would cut the repo rate by 25 points to 6.00%, which would be lowest since November of 2010.The decision was likely to be influenced by two major factors; the fall in consumer and investment spending because of the cash crunch and the outlook on rupee’s value and inflation. In the last policy review in October, the Central Bank had cut the short-term lending (repo) rate by 0.25 per cent to 6.25 percent and has reduced the policy rate by 1.75 percent since January 2015. India, with 7.3% growth in July-September still keeps its position as the world’s fastest growing economy, which is quite ahead of China’s growth rate of 6.7%.
Six-member Monetary Policy Committee met on Tuesday amid speculations of at least 0.25 percent cut in the policy rate to soften the impact of demonetisation.
This was the second such meeting headed by RBI Governor Urjit Patel after the first in October, when it had cut repo, or the short-term lending rate, by 0.25 percent to 6.25 percent.
03: 54 PM: Will get to know the growth impact and liquidity in system in 2 months: CEA Arvind Subramanian
03: 50 PM: Only Indian bond yields have come down post US election; Rupee under pressure: Arvind Subramanian
03: 50 PM: Today’s @RBI decision important in containing liquidity in the system: Arvind Subramanian, CEA
03: 50 PM: Need to wait for high frequency data and macro data for assessment of note ban: Arvind Subramanian, CEA
03: 50 PM: Rate cut from @RBI now could have given conflicting signals, says CEA A Subramanian
03: 50 PM: Looking at all high-frequency data and impact of demonetisation in detail: Arvind Subramanian, CEA
03: 50 PM: RBI’s decision has come at the time of high global volatility and uncertainty: Arvind Subramanian, CEA
03: 49 PM: RBI has made a bold and brilliant call on keeping rates unchanged: Arvind Subramanian, CEA
03: 48 PM: Demonetisation has led to uncertainty on future course on growth & inflation: Arvind Subramanian, CEA
03: 47 PM: Keeping rates unchanged is a brilliant call by RBI Monetary Policy Committee: Arvind Subramanian, CEA
03: 46 PM: Will get to know the growth impact and liquidity in system in 2 months: CEA Arvind Subramanian
03: 37 PM: Choice of denomination is based on requirement. Regarding Rs 1000 notes, we have not determined anything as of now: R S Gandhi RBI Deputy Governe, RBI
03:36 PM: Sensex falls 156 points after RBI dashes hope of rate cut, Nifty settles at 8,102
03:29 PM: RBI deputy governor R Gandhi says, the last date of returning old notes is under continuous review.
03: 21 PM: RBI & Central govt note presses working at full capacity, all efforts being made to supply currency to every part of country: R Gandhi Deputy Governer, RBI
03: 21 PM: No fundamental trust deficit, most ppl think its good decision as it fights fake currency,black money&terrorism: Urjit Patel
03:15 PM: No implication of demonetisation on RBI’s balance sheet: Urjit Patel
Also read: Highlights of RBI Monetary Policy 2016
03: 13 PM: Have Recalibrated Production Of Rs 500 & Rs 100 Notes In Last 2 Weeks. Paper Currency Requirement To Come Down with Digitisation
03: 10 PM: RBI promises continuous supply of new currency notes; almost Rs 11.55 lakh crore in old notes back in system: Gandhi
03: 10 PM: Consequences of demonetisation were taken on board; all efforts were made to mitigate problems: Urjit Patel
03: 10 PM: RBI policy on interest rate has nothing to do with forthcoming US Federal Reserve decision: RBI
03:07 PM: Write-offs Have Reduced Vs Last Year. Have Allowed Banks To Implement 5/25 Even In Low-value Cases.
03:06 PM: Between 10th Nov-5th Dec 2016, RBI supplied 19.1 bn pieces of denominations to public,which is more than total of last 3 years: R Gandhi Deputy Governer, RBI
03:06 PM: Old notes worth Rs 11.55 lakh crore recovered after #DeMonetisation : R Gandhi, RBI
03:02 PM: Govt has pro-actively responded with increasing Market stabilisation scheme limit to Rs 6 Lakh crore: Urjit Patel
03:01 PM: SS Mundra, RBI Deputy Governor: Recoveries of bad loans have been better in H1 of FY17
03:00 PM: There is adequate supply of notes, says RBI asking people not to hoard new currency; supplied Rs 4 lakh crore in new notes
02:59 PM: Demonetisation decision not taken in haste: RBI Deputy Governor R Gandhi
02:55 PM: The benchmark 10-year bond yield rose sharply, and was up 13 bps from levels before the decision.
02:54 PM: Inflation outcome in September and October indicates current stance: Urijit Patel
02:53 PM: Salary rise under the 7th pay commission has not been disruptive for inflation: Urjit Patel
02:51 PM: In the external sector, India’s merchandise exports rebounded in Septemberand October. The return to positive territory was supported by a pick-up in both POL and non-POL exports. After a prolonged fall for 22 months, imports rose in October on the back of a sharp rise in the volume of gold imports and higher payments for
02:50 PM: RBI: Demonetisation to result in short-run disruptions in cash-intensive sectors like retail, hotels, restaurants and transportation
02:49 PM: Retail inflation to be 5 per cent in fourth quarter of current fiscal: RBI
02:48 PM: Food prices seeing sustained firmness, momentum pick-up: RBI
02:48 PM: RBI: Demonetisation to result in short-run disruptions in cash-intensive sectors like retail, hotels, restaurants and transportation
02:48 PM: Monetary stance remains accommodative, says RBI
02:47 PM: Withdrawal of old notes could result in temporary reduction in inflation by 10-15 basis points in third quarter: RBI
02:46 PM: Liquidity conditions have undergone large shifts in Q3 so far. Surplus conditions in October and early November were overwhelmed by the impact of the withdrawal of SBNs from November 9. Currency in circulation plunged by `7.4 trillion up to December 2; consequently, net of replacements, deposits surged into the
3banking system, leading to a massive increase in its excess reserves: RBI
02:45 PM: FY-17 growth projection revised down to 7.1% from 7.6%
02:44 PM: RBI to withdraw incremental CRR from Dec 10
02:44 PM: Global growth picked up modestly in H2 of 2016, says RBI
02:43 PM: Six members voted in favour of the monetary policy decision, says RBI
02:43 PM: RBI projects CPI at 5% in Q4 of 2016-17 with risks tilted to the upside
02:42 PM: Gross fixed capital formation contracted for the third consecutive quarter. Although government final consumption expenditure slowed sequentially, it supported private final consumption expenditure, the mainstay of aggregate demand.
02:41 PM: On the domestic front, the growth of real gross value added (GVA) in Q2 of 2016-17 turned out to be lower than projected on account of a deeper than expected slowdown in industrial activity.
02: 41 PM: Nilesh Shah to ET Now: Markets are disappointed, analysts had hoped for a 25 bps rate cut
02:38 PM: International financial markets were strongly impacted by the result of the US presidential election and incoming data that raised the probability of the Federal Reserve tightening monetary policy. As bouts of volatility fuelled a risk-off surge into US equities and out of fixed income markets, a risk-on stampede pulled out capital flows from EMEs, plunging their currencies and equity markets to recent lows even as bond yields hardened in tandem with US yields.
02: 38 PM: Global growth picked up modestly in the second half of 2016, after weakening in the first half. Activity in advanced economies (AEs) improved hesitantly, led by a rebound in the US. In the emerging market economies (EMEs), growth has moderated, but policy stimulus in China and some easing of stress in the larger commodity exporters shored up momentum.
02:36 PM: RBI keeps Reverse Repo Rate unchanged at 5.75%
02:30 PM: RBI keeps repo rate unchanged at 6.25%
12:16 PM : Bank and auto stocks surged nearly five per cent in morning trade on BSE ahead of the Reserve Bank’s policy review meet.
09:30 AM: Rupee continued to recover for the second day today, climbing 12 paise to 67.78 against the dollar on increased selling of the American currency by exporters and banks ahead of RBI policy meet.