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  1. RBI Monetary Policy 2017 LIVE updates: RBI keeps repo rate unchanged at 6.25 per cent; Shaktikanta Das expects growth to revive upwards of 7 per cent for FY18

RBI Monetary Policy 2017 LIVE updates: RBI keeps repo rate unchanged at 6.25 per cent; Shaktikanta Das expects growth to revive upwards of 7 per cent for FY18

RBI governor Urjit Patel-led Monetary Policy Committee (MPC) kept the key repo rate unchanged in the first monetary policy review of 2017 and after Budget 2017.

By: | Updated: February 8, 2017 4:49 PM
However, the Consumer Price Index (CPI) based inflation came down to 3.6 percent in December due to decreased spending by cash strapped citizens in the aftermath of demonetisation.  The Consumer Price Index (CPI) based inflation came down to 3.6 percent in December due to decreased spending by cash strapped citizens in the aftermath of demonetisation.

RBI governor Urjit Patel-led Monetary Policy Committee (MPC) kept the key repo rate unchanged in the first monetary policy review of 2017 and after Budget 2017. In a surprise move, the RBI had kept the repo rate unchanged in the fifth bi-monthly monetary policy statement for 2016-17 on December 7, while it had cut the repo rate by 25 bps in the October 4 policy review in 2016, which was the first rate cut by Patel as the Governor. What is particularly notable is that the Central government’s aggregate expenditure growth is going to moderate sharply to 6-7% YoY in FY18 compared to 12-14% in the past 2-3 years. Additionally, the fiscal math presented in the Budget is quite credible, which should also be comforting for RBI. As regards growth, the economy is certainly stabilising after the demonetisation shock, but still aggregate demand remains weak with private capex particularly anemic. Catch all the LIVE updates here….

4:35 pm: Inflation is expected to pick up momentum, especially as growth picks up and the output gap narrows. Moreover, base effects will reverse and turn adverse during the third and fourth quarter of 2017-18, the RBI said today.

4:15 pm:  Last week, the government had informed Parliament that it has not come across any confirmed reports on detection of
counterfeit notes of Rs 2,000.

4:08 pm:  The large overhang of liquidity consequent upon demonetisation weighed on money markets in December, but from mid-January rebalancing has been underway with expansion of currency in circulation and new bank notes being injected into the system at an accelerated pace. Throughout this period, the Reserve Bank’s market operations have been in liquidity absorption mode, it says.

4:03 pm: The RBI has conducted market liquidity operations consistent with the liquidity management framework put in place in April 2016, progressively moving the system level ex ante liquidity conditions to close to neutrality. This stance will continue, the report says.

4:02 pm: The GVA growth for 2016-17 is projected at 6.9 per cent with risks evenly balanced around it. Growth is expected to recover sharply in 2017-18 on account of several factors, the report says.

4:00 pm: Government now focussing on implementing all Budget announcements, says economic affairs secretary

3:59 pm: Expect growth to revive & be upwards of 7% for FY18, says Shaktikanta Das.

3:58 pm: Banks have already reduced interest rates, he says.

3:57 pm: MPC has unanimously decided to keep rates unchanged, says Economic Affairs Secretary Shaktikanta Das.

3:56 pm: In the fifth bi-monthly statement of December, headline inflation was projected at 5 per cent in Q4 of 2016-17 with risks lower than before but still tilted to the upside. The decline in headline CPI inflation in November and December has been larger than expected.

3:53 pm: Marking the fifth consecutive month of softening, retail inflation measured by the headline consumer price index (CPI) turned down sharper than expected in December and reached its lowest reading since November 2014. This outcome was driven by deflation in the prices of vegetables and pulses. Some moderation in the rate of increase in prices of protein-rich items – eggs, meat and fish – also aided the downturn in food inflation, it says.

3:51 pm:  International financial markets turned volatile from mid-January on concerns regarding the ‘Brexit’ roadmap and materialisation of expectations about economic policies of the new US administration. Within the rising profile of international commodity prices, crude oil prices firmed up with the OPEC’s agreement to curtail production, the report says.

3:45 pm: Global growth is projected to pick up modestly in 2017, after slowing down in the year gone by.

3:43 pm: The Central Statistics Office (CSO) released its advance estimates for 2016-17 on January 6, placing India’s real GVA growth at 7.0 per cent for the year, down from 7.8 per cent (first revised estimates released on January 31) a year ago.

3:40 pm:  Sensex drops 45.24 pts to end at 28,289.92; Nifty up 0.75 point to 8,769.05.

3:30 pm: Industrial output measured by the index of industrial production (IIP) finally shrugged off the debilitating drag from insulated rubber cables from November and was also pushed up by a favourable base effect. In December, the output of core industries accelerated on a year-on-year as well as on a sequentially seasonally adjusted basis

3:23 pm: There is still scope for Lending Rates of banks to come down, says RBI Governor UrjitPatel.

R Gandhi, Deputy Gov, @RBI: 9.92 lakh cr notes are in circulation including all notes as of January 2017. pic.twitter.com/L1aPtWcFnl

3:21 pm: There won’t be any limit on cash withdrawal from March 13, says RBI.

3:15 pm: Assure on behalf of RBI that India’s banking system is robust,saying there are flaws because of few incidents is wrong: RBI Depuy Governor SS Mundra.

3:12 pm: RBI Deputy Guv, Viral Acharya: NPA problem requires significant recapitalisation of banks.

3:10 pm: Both fast remonetisation and balanced Budget must aid in narrowing output gap: RBI Deputy Governor Viral Acharya

Assure on behalf of RBI that India's banking system is robust,saying there are flaws because of few incidents is wrong: SS Mundra Dy Guv RBI Assure on behalf of RBI that India’s banking system is robust,saying there are flaws because of few incidents is wrong: SS Mundra Dy Guv RBI

3:09 pm: 9.92 lakh crore new notes infused into market as on January 27, says RBI

3:08 PM: RBI Deputy Governor, Viral Acharya: Both fast remonetisation & balanced Budget must aid in narrowing output gap.

3:07 pm: RBI Deputy Governor, Viral Acharya: NPA problem requires significant recapitalisation of banks.

3:06 pm: New notes of Rs 2000 and Rs 500 are difficult to copy, the ones being found are photo copies: RBI

3:05 pm: Governor Urjit Patel led RBI keeps repo rate unchanged at 6.25%: Read Full Monetary Policy Statement

3:04 pm: 

We await greater data on demonetisation, remain fully flexible: Viral Acharya We await greater data on demonetisation, remain fully flexible: Viral Acharya

3:03 PM: The Committee felt that we needed all the flexibility that we could muster: RBI Governor Urjit Patel

3:02 pm:  There is more than one channel of global spillover from inflation, says Urjit Patel

3:01 pm: There are several global developments like oil price uncertainties, base metal prices gone up, global food index has gone up: Urjit Patel

3:00 pm: RBI keeps key policy rate unchanged, but expect your EMIs to come down further

2:59 pm: 

Still scope for lending rates to come down: Urjit Patel Still scope for lending rates to come down: Urjit Patel

2:58 pm: There is still scope for lending rates to come down, scope for more transmission; sound & healthy borrowers already benefited: RBI

2:57 pm: 

 RBI Deputy Governor, SS Mundra: Some pressure on banks' net profits may continue.
RBI Deputy Governor, SS Mundra: Some pressure on banks’ net profits may continue.

2:56 PM: RBI Deputy Guv, SS Mundra: Level of provisioning for bad loans quite adequate

2:55 pm: Limit on cash withdrawal from savings banks accounts to be relaxed in 2 stages. From 20 Feb limit to be increased from Rs 24k to Rs 50k: RBI

2:54 pm: From 13 March there will be no limit on cash withdrawal from savings bank accounts: RBI

2:53 pm: RBI Deputy Guv, SS Mundra: RBI to constitute standing committee on cyber security

2:52 pm: On inflation front, transient factors have discolored objective assessment on inflationary pressures: Urjit Patel

2:51 pm: Assessing economic conditions in short terms tough due to demonetisation, says Urjit Patel

2:50 pm: Exercised abundance prudence in keeping policy rates on hold, keeping in mind the objective of growth: Urjit Patel

2:49 pm: Sensitive to have a calibrated approach to the target, so decided to shift policy stance: RBI Governor Urjit Patel

2:48 pm: MPC is dedicated to achieve the targeted CPI, says Urjit Patel

2:47 pm: Crude price rise, forex volatility, full impact of 7th Pay Commission risks to CPI, says RBI

2:46 pm: 

RBI keeps repo rate unchanged at 6.25% RBI keeps repo rate unchanged at 6.25%

2:45 pm: Geopolitical concerns hardened commodity prices, says RBI

2:44 pm: Stock markets fell after the Reserve Bank of India kept key policy rates unchanged, with the repo rate at 6.25%, against expectations, and toughened the policy stance to ‘neutral’ from ‘accomodative’.

2:43 pm: Sensex, Nifty fall as RBI holds policy rates defying hopes

2:43 pm: Urjit Patel raises doubts on Modi’s demonetisation? In big move, RBI changes credit policy stance from accommodative to neutral

2:42pm: Inflation seen at 4-4.5% for April-September, RBI says

2:41 pm: To continue close alignment of Repo Rate to weighted Call Rate.

2:41 pm: Rate on hold to assess demonetisation impact on inflation, output gap, says RBI

2:40 pm: FY18 Budget may cap upside risk to CPI, says RBI

2:39 pm: RBI says, see January-March CPI stay below 5%.

2:38 pm: MPC committed to bring CPI near 4% on durable basis.

2:37 pm: FY18 GVA seen at 7.4% with risks evenly balanced.

2:36 pm: FY17 GVA seen at 6.9% with risks evenly balanced.

2:35 pm: RBI keeps MSF, Bank rate unchanged at 6.75%.

2: 34 pm:  RBI keeps Reverse Repo rate unchanged at 5.75%.

2:33 pm: RBI changes policy stance to ‘Neutral’ from ‘Accommodative’.

2:32 pm: RBI monetary policy review: Urjit Patel-led MPC keeps repo rate unchanged post Budget 2017

2:31 pm: RBI keeps repo rate unchanged

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