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RBI Monetary Policy Meeting Live: December 8 Announcement
Live Updates: RBI’s Monetary Policy Committee Decision
In the latest development from the RBI MPC Meeting, the Monetary Policy Committee has unanimously opted to maintain the key policy repo rate at 6.5%.
This marks the fifth consecutive meeting where the MPC has chosen to uphold the existing rate, with the last adjustment being a 25 basis points increase to 6.50% in February 2023.
RBI Governor reports that 5 out of 6 MPC members have voted in favor of the “withdrawal of accommodation,” signaling a cautious approach. Governor Das emphasized the MPC’s high alertness and readiness to take necessary actions as the economic landscape evolves.
| Metric | FY24 Projection | Q3 FY24 Projection | Q4 FY24 Projection | Q1 FY25 Projection | Q2 FY25 Projection | Q3 FY25 Projection |
|---|---|---|---|---|---|---|
| GDP Growth | 7% | – | – | – | – | – |
| CPI Inflation FY24 | 5.4% | – | – | – | – | – |
| CPI Inflation Q3 FY24 | – | 5.6% | – | – | – | – |
| CPI Inflation Q4 FY24 | – | – | 5.2% | – | – | – |
| CPI Inflation Q1 FY25 | – | – | – | 5.2% | – | – |
| CPI Inflation Q2 FY25 | – | – | – | – | 4% | – |
| CPI Inflation Q3 FY25 | – | – | – | – | – |
RBI Permits Reversal of Liquidity Facilities on Weekends and Holidays
In response to the heightened utilization of both the marginal standing facility (MSF) and standing deposit facility (SDF) by banks, the central bank has put forth a proposal to address the situation. Effective from December 30, 2023, the Reserve Bank of India (RBI) will allow the reversal of liquidity facilities in both SDF and MSF even during weekends and holidays.
Governor Das Highlights Concerns on Food Inflation Trajectory
During the ongoing RBI Monetary Policy Meeting, Governor Das emphasized the need to monitor the trajectory of food inflation. High-frequency indicators reveal potential price hikes in essential vegetables, contributing to an upward trend in food inflation. Additionally, Governor Das expressed concern about elevated global sugar prices, while noting the stabilization of domestic milk prices.
Date: December 8, 2023, 10:27 AM
RBI Expected to Maintain ‘Withdrawal of Accommodation’ Stance
In today’s highly anticipated monetary policy announcement, the Reserve Bank of India (RBI) is set to reveal its decision on key rates. A CNBC-TV18 poll suggests that the central bank may opt to keep the repo rate unchanged in this session. Stay tuned for real-time updates on the December Monetary Policy Committee (MPC) meeting.
RBI Governor Declares Status Quo on Key Rates
RBI Governor Shaktikanta Das disclosed that the majority of MPC members voted in favor of continuing the focus on the ‘withdrawal of accommodation.’ As the central bank addresses the economic landscape, key rates are expected to remain steady.
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Global Economic Insights from RBI Governor
Governor Shaktikanta Das shared insights on the global economic scenario, noting signs of a slowdown, albeit unevenly distributed. Highlighting inflation concerns and volatile financial markets, he emphasized the major central bankers’ decision to maintain existing interest rates.
Analyzing RBI’s Tone: More Crucial Than MPC’s Decision
As the RBI’s monetary policy is unveiled, the focus shifts from MPC’s voting outcomes to Governor Shaktikanta Das’s communication. The market awaits signals and cues from the central bank, transcending the numerical decisions made by the Monetary Policy Committee.
Stock Market Reacts to Policy Decision
The stock market opened with minor gains ahead of the RBI’s policy decision. Sensex and Nifty 50 displayed slight increases, setting the tone for the trading session.
Inflation Forecast and Economic Outlook
Governor Shaktikanta Das may address concerns over inflation and potential risks to the economy in his statement. Analysts anticipate a cautious outlook, leaning towards a hawkish stance due to persistent inflation worries.
Policy Stance Unlikely to Change
Based on a CNBC-TV18 poll, the majority expects no further rate hikes in the current fiscal year. The policy stance, focused on the withdrawal of accommodation, is anticipated to remain unchanged, with consensus challenging for a shift to a neutral stance.
RBI’s Focus Beyond Interest Rates
This time, market interest lies beyond interest rate changes. Observers are keen to see if Governor Shaktikanta Das announces unexpected measures, such as adjusting risk weights or selling bonds in the open market.
Reviewing Previous Rate Changes
The last repo rate hike occurred on February 23, bringing it to 6.5 percent. With the RBI maintaining tight liquidity, short-term rates hover higher than the repo rate.
Future Rate Change Speculations
According to a Deutsche Bank report, the RBI might not alter repo rates until June next year. Analysts predict a potential rate cut in June 2024, with further adjustments based on the global economic scenario and actions by the Federal Reserve.
CNBC-TV18 Poll Forecasts Unchanged Repo Rates
As per a CNBC-TV18 poll, expectations align with the RBI maintaining the status quo on the repo rate. Governor Shaktikanta Das is projected to communicate a cautious outlook, leaning towards a hawkish tone.
Governor Das Set to Announce Outcome at 10 am
The culmination of the three-day meet will be unveiled at 10 am, as RBI Governor Shaktikanta Das announces the central bank’s monetary policy outcome. Stay tuned for the latest updates on this critical economic event.