RBI Monetary Policy Updates Live | The head of RBI Shaktikanta Das said the repo rate remains unchanged at 4%.

RBI Monetary Policy Updates Real Time: In line with expectations, the RBI MPC keeps key interest rates unchanged. This is the ninth consecutive time there has been no change in interest rates. RBI Monetary Policy Live: Reserve Bank of India (RBI) Governor Shaktikanta Das announced on December 8 that the central bank has decided to keep key rates unchanged. The repo rate is kept at 4% and his position is flexible. Amid the global panic over the novel omicron coronavirus strain, the RBI was expected to wait for a better time to calibrate its benchmark interest rate to keep the status quo in upcoming monetary policy and spur growth without sacrificing the main goal of containing inflation. . Moreover, since the interest rate has not changed, this is the ninth time in a row. On December 68, 2021, a meeting of the Monetary Policy Committee (MPC), chaired by the Governor of the Central Bank, will be held. The decision of the rate-setting committee will be announced on Wednesday (December 8). The central bank kept the benchmark interest rate unchanged in October.
“…we think the talk of a reverse repo rate hike at the MPC meeting may be premature, as the RBI has been able to narrow its scope significantly without raising rates and the resulting market dissonance,” the SBI Research report said. Says.
According to this, the RBI is not obligated to act with reverse repo rates only at MPC. “Also changing the reverse repo rate is a disruptive policy tool that the RBI has effectively applied during the crisis as it moves to the floor rather than the aisle,” he added.
Experts also say the RBI MPC is likely to keep rates unchanged and will favor the “conservative” until February 2022 when risks to public health become more evident, experts say.
Omicron Factor Before the Omicron variant of
COVID19 took over dynamics and market discourse, it was possible that the MPC could signal the RBI to begin the currency normalization process at its December 68 meeting. as a reverse repo ratio. It has been reiterated that
RBI will continue to normalize in a conditional, not time-based (data-driven approach), progressive, pre-telegraphically calibrated fashion. In Variable Rate Repo Repo Auction (VRRR), we have consistently made a profit in both average and cutoff returns.
Other Factors
As noted by some MPC members in the last policy review in October, in addition to potential new public health uncertainties, the recent projected equilibrium dynamics between growth and inflation has called for normalization.
Growth continues to slow and recovery continues globally and in India, although there are concerns over loss of economic growth in China. In many developed countries, inflation has remained high over the past few months and is expected to continue in the first half of 2022.
Labor markets, particularly those in the US and UK, remain narrow, raising concerns that wage inflation will spill over into greater price pressures. There is a labor shortage for a variety of jobs, exacerbating price pressures. The housing market remains strong in many regions.
Background The
central bank last revised its policy rate on 22 May 2020 as part of a further policy cycle to stimulate demand by cutting interest rates to historical lows. The central government has asked the RBI to keep retail inflation at 4% based on the Consumer Price Index (CPI). The central bank kept the benchmark interest rate unchanged after a monetary policy review in August, citing inflation concerns.
At the MPC meeting in October, the central bank predicted CPI inflation of 5.3% in 202122: 5.1% in Q2, 4.5% in Q3; Q4 2021 5.8%22, risk is generally balanced. In Q1 2022, CPI inflation23 is expected to be 5.2%.