January 23, 2018

RBI seen keeping rates unchanged

06 December 2017, 12:18 | Kevin Scott

India's Central Bank, Wary on Inflation, Set to Keep Rates on Hold

RBI seen keeping rates unchanged

Consumer prices rose at a seven-month high of 3.6 percent in October and a Bloomberg Economics index shows core inflation - which strips out volatile food and fuel - is stubbornly above the central bank's 4 percent medium-term target. However, it kept economic growth forecast unchanged at 6.7 per cent. Further, global policy rate cycle and commodity prices along with consolidated fiscal position will keep the RBI cautious. Polls conducted by major news organisations say that the RBI will keep its policy rates unchanged, with retail inflation threatening to rise beyond 4 per cent.

At the fifth bi-monthly monetary policy session, the Monetary Policy Committee of the Reserve Bank of India made a decision to maintain the repo rate at 6.00 percent and the reverse repo rate at 5.75 percent.

It also expected the impact of the house rent allowance (HRA) to the central government employees to peak during December, following the 7th Pay Commission award.

Reverse repo rate is the rate of interest offered by the RBI when banks deposit their surplus funds with it for short periods.

The Indian economic growth recovered to 6.3 percent year-on-year in the third quarter from the previous quarter's 5.7 percent growth, slightly coming below the market projection of 6.4 percent.

General ticket sales for Orange Bowl begin Tuesday
WAA is a division of the Wisconsin Foundation and Alumni Association, a nonprofit organization dedicated to advancing UW-Madison. The Badgers are Orange Bowl-bound - and you can be, too, if you're interested in finding a travel package for the game.

Winter Weather Advisory issued for Wednesday and Thursday
Forecasters says snow will most likely fall in central and southeastern Jefferson County and northern Lewis County. Early Monday morning, the National Weather Service issued a winter storm watch for much of the area.

Mosaic Family Wealth LLC Acquires 2601 Shares of Intel Corporation
Lombard Odier Asset Management Europe Ltd sold 51,382 shares as the company's stock declined 2.96% while stock markets rallied. Summit Group Ltd Liability Corp holds 0.12% or 19,281 shares in its portfolio. 402,145 were reported by Blb&B Advsrs Limited.

While there has been weakness in some components of the services sector such as real estate, its survey indicates that the services and infrastructure sectors are expecting an improvement in demand, financial conditions and the overall business situation in fourth quarter, RBI pointed out.

"I. vote for status quo, but only as long as inflation readings stay within the target of 4%".

Nevertheless, Modi's advisers said India's rates are too high.

"The recovery is a source of comfort to the RBI as it lowers pressure on them to take a growth-supportive stance", said Radhika Rao, an economist at DBS in Singapore.

Besides, recapitalisation of public sector banks may help improve credit flows further, it added.

Other News

Trending Now

Illegal Immigrant Faces Federal Charges in Kate Steinle's Death
Gascon also criticized President Trump and conservative pundits for turning the trial into a "political football". Defense lawyers for Garcia Zarate said Monday they will appeal the state charge for which he was convicted.

Rite Aid (NYSE:RAD) Receives Coverage Optimism Score of 0.17
Thereafter, both the entities entered into a new deal, per which Walgreens will buy certain Rite Aid stores and related assets. The company's shares were given away at $7.77 per share worth to an income of some $265,004 on account of Donley Douglas E.

Texas cheerleader's invisible box challenge goes viral
The successful attempt went viral with more than 142,000 re-tweets, and it's now inspiring many users to try the trend. It seems that 2017 has found its own internet fad just before 2018 begins with the " invisible box" challenge.

N'Zonzi eyes Sevilla exit amid Premier League interest
He continued: "I'm indeed in London , but it's got nothing to do with a transfer or football. However, that rumour has been quashed since N'Zonzi was in London visiting his son.