 "RBI monetary policy updates: Central bank has many other tools to revive growth, not just interest rates, says Shaktikanta Das")
 "Hyundai India’s Rs 27,870 crore IPO oversubscribed by 2.28X, largely driven by institutional investors")
 "How Indian fintech startups are driving Malaysia’s UPI-like digital payments revolution")
RBI MPC LIVE updates: After leaving benchmark interest rates rates unchanged in the second consecutive policy review, RBI governor Shaktikanta Das on Thursday said the central bank has many other instruments to address the sluggishness the economy, not just interest rates. The Reserve Bank of India (RBI) in its sixth bi-monthly monetary policy pegged GDP growth for FY21 at 6 percent but guided towards an uncertain inflation outlook. In a January 31 release, the National Statistical Office (NSO) had revised down real GDP growth for FY19 to 6.1 percent from 6.8 percent provided in the provisional estimates of May 2019. Given this, the central bank noted that the economy is still plagued by deep output gaps. “The RBI has several instruments to address the sluggishness in the growth momentum,” Das told reporters at the customary post-policy conference. The Reserve Bank of India on Thursday projected the economy to expand by 6 percent during the next financial year, pegging it at the lower end of the GDP growth estimate of the Economic Survey. The survey, tabled in Parliament last month, estimated the GDP growth during FY21 at 6-6.5 percent. After three-day deliberations, the Monetary Policy Committee (MPC), headed by Reserve Bank of India (RBI) Governor Shaktikanta Das, observed that the economy continues to be weak and the output gap remains negative. Real GDP growth for 2019-20 was projected at 5 percent in the December 2019 policy. RBI governor Shaktikanta Das said that the recent rise in food prices has shifted the terms of trade in favour of agriculture, which will support rural incomes. He added that the easing of global trade uncertainties should encourage exports and spur investment activity. Excluding onions, food inflation would have been lower by 4.7 percentage points and headline inflation by 2.1 percentage points in December. RBI governor Shaktikanta Das said that inflation in several other food sub-groups such as milk, pulses, cereals, edible oils, eggs, meat and fish also firmed up. S&P BSE Sensex was trading over 200 points higher at 41,367 points, while the broader Nifty50 index was ruling at 12,141, up 53 points. Shares of housing finance companies surged higher after the RBI said that ’no downgrade of commercial realty loan if delay genuine’. RBI governor Shaktikanta Das says that after extensive review, the decision to key policy rates unchanged was taken. This, he said, was discounted but added that one should not discount the Reserve Bank. MPC said that the higher fiscal deficit in 2019-20 has not resulted in an increase in market borrowings compared to the budget estimates. The fiscal deficit is budgeted to decline to 3.5 percent of GDP for 2020-21. MPC of Reserve Bank of India keeps the repo rate unchanged at 5.15 percent. With status quo on repo rate, the MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target. Amid slowing economic growth and rising inflation, the Reserve Bank of India (RBI) will unveil its last monetary policy for the current financial year today. This is the sixth bi-monthly monetary policy statement of this financial year. The RBI said it will place the resolution of the MPC on its website before noon on 6 February.
#RBIPolicy | Will the Reserve Bank of India hold fire or cut rates in its sixth bi-montly policy? Here's what CNBC-TV18's Citizens' Monetary Policy Committee is expecting@latha_venkatesh pic.twitter.com/AqJnZEWpoc
— CNBC-TV18 (@CNBCTV18News) February 6, 2020
The Monetary Policy Committee (MPC) of the RBI is expected to maintain status quo on the rates keeping in view the current economic situations. In its previous monetary policy review in December, the RBI had decided for a status quo, leaving the key repo – the rate at which it lends to banks — at 5.15 percent. RBI governor Shaktikanta Das headed six-member rate-setting panel had started its three-day brainstorming meeting on Tuesday (4 February) in the backdrop of Union Budget projecting a widening of fiscal deficit amid slowing economy and hardening inflation. [caption id=“attachment_5766671” align=“alignleft” width=“380”] File image of RBI governor Shaktikanta Das. Reuters[/caption] The Monetary Policy Committee (MPC), which announces the benchmark lending rate (repo) on bi-monthly basis, has been tasked by the government to tame retail inflation based on Consumer Price Index (CPI) at 4 percent (+,- 2 percent). The retail inflation that for several months remained in the comfort zone of the central bank has started inching up and crossed the 7 percent mark during December 2019, mainly due to spiralling prices of vegetables. MPC will have a tough time, say experts Experts said the MPC members are going to have a tough time as slowing economy makes the case for reduction in repo rate, while rising inflation and higher fiscal deficit will require the central bank to either hike the rate or maintain a status quo. The government has estimated India’s gross domestic product (GDP) at 5 percent in the current financial year owing to both domestic as well as global factors amid weakening consumption demand in the country. In December, retail inflation also peaked to a five-year high of 7.3 percent, mainly due to costlier vegetables, specifically onion and tomato. In its previous monetary policy review in December, the RBI had decided for a status quo, leaving the repo unchanged at 5.15 percent on concerns of rising inflation. While presenting the Union Budget on 1 February, Finance Minister Nirmala Sitharaman projected the fiscal deficit to widen to 3.8 percent of the GDP against the earlier estimate of 3.3 percent. Budget 2020 announcements may impact policy? Budget 2020 decisions may also reflect in the RBI policy. For FY20, the government has surpassed the budgeted fiscal deficit target. Fiscal deficit target of 3.3 percent of GDP has been revised upwards to 3.8 percent of GDP for FY20. For FY21, the fiscal deficit as percent of GDP has been projected at 3.5 percent of GDP. For FY21, the government’s gross borrowings are budgeted at Rs 7.8 lakh crore, estimated to be 9.8 percent higher than Rs. 7.1 lakh crore in FY20 RE. Further, the net borrowing requirement is pegged at Rs 5.40 lakh crore, which is 15 percent higher from a year ago. With higher net borrowings for FY21, the RBI may front-load the central government borrowings. Monetary Policy Committee has done its bit: CRISIL CRISIL Ratings in its post-Union Budget 2020-21 comment has said, “Monetary policy has done its bit, but with moderate and slow success.” It added that the RBI cut the repo rate cumulatively by 135 basis points (bps) through calendar 2019, but lending rates tarried with just nearly 50-bps decline. “Even as credit demand has fallen, risk aversion and weak sentiment have affected the willingness to supply credit, too.” Rupee range-bound with decline in crude prices In January 2020, the rupee has largely remained range-bound between Rs 70-72 per dollar with decline in the crude oil prices owing to the demand concerns after the outbreak of Coronavirus in China and narrowing current account deficit. But the outflow of FPIs has put pressure on the exchange rate.
 "Charlie Kirk, shot dead in Utah, once said gun deaths are 'worth it' to save Second Amendment")
 "From governance to tourism, how Gen-Z protests have damaged Nepal")
 "Did Russia deliberately send drones into Poland’s airspace?")
 "Netanyahu ‘killed any hope’ for Israeli hostages: Qatar PM after Doha strike")
 "Charlie Kirk, shot dead in Utah, once said gun deaths are 'worth it' to save Second Amendment")
 "From governance to tourism, how Gen-Z protests have damaged Nepal")
 "Did Russia deliberately send drones into Poland’s airspace?")
 "Netanyahu ‘killed any hope’ for Israeli hostages: Qatar PM after Doha strike")
