The Reserve Bank of India on Thursday made no changes to its interest rates, as expected at 6.50% during its June meeting. Guidance however remained hawkish as Governor Shaktikanta Das signaled those monetary conditions will remain tight for some time as it looks to further curb inflationary pressures. Indian inflation fell to a 18-month low of 4.70% in April, however analysts do not expect India’s inflation to fall to the Reserve Bank of India’s (RBI) 4% medium-term target in a … Continue reading “Reserve Bank of India Kept its Key Repo Rate at 6.50% as Expected”
Reserve Bank of India Surprised Keeping its Key Repo Rate at 6.50%
The Reserve Bank of India on Wednesday surprised by keeping its key repo rate at 6.50% during its April meeting. Guidance however was hawkish as Governor Shaktikanta Das said “our job is not yet finished and the war against inflation has to continue” but markets nevertheless drove a bull steepener across the Indian rates curve. The Reserve Bank of India Monetary Policy Committee (MPC) decision followed a 25-bps hike in February, bringing the rate to level not seen since March … Continue reading “Reserve Bank of India Surprised Keeping its Key Repo Rate at 6.50%”
Reserve Bank of India Hike Rates Sixth Time in a Row to 6.50%
The Reserve Bank of India on Wednesday raised its key repo rate by 25 bps to 6.50% during its February meeting, the sixth-rate hike in a row. Headline Consumer Price Inflation (CPI) remains under the RBI’s upper tolerance limit of 6 per cent. There has been some moderation in food prices with annual inflation easing unexpectedly easing to 5.72% in December of 2022 from 5.88% in November, the lowest reading since December of 2021. With the US dollar pulling back … Continue reading “Reserve Bank of India Hike Rates Sixth Time in a Row to 6.50%”
Reserve Bank of India Hike Rates Fifth Time in a Row to 6.25%
The Reserve Bank of India meets on Wednesday and raised its key repo rate by 35 bps to 6.25% during its December meeting, the fifth-rate hike in a row. Headline Consumer Price Inflation (CPI) remains outside the RBI’s upper tolerance limit of 6 per cent. There has been some moderation in food prices with annual inflation easing to 6.77% in October, down from September’s five-month high of 7.41%. With the US dollar pulling back from its rampage the reprieve from currency … Continue reading “Reserve Bank of India Hike Rates Fifth Time in a Row to 6.25%”
India’s BSE Sensex Stock Market Closes at Record High
India’s BSE Sensex 30-pack index on Thursday settled at a new closing high of 62,272.68, up 762.10 points or 1.24% extending its rally to the third straight day. During the day, it jumped 901.75 points or 1.46 per cent to its lifetime high of 62,412.33 led by large caps. The move tracked a firm trend in global markets after the US Fed minutes indicated a slower pace of rate increase that bolstered investors’ sentiment. Policy-sensitive tech shares benefited from the … Continue reading “India’s BSE Sensex Stock Market Closes at Record High”
Ahead of RBI Meeting S&P says Indian Inflation Likely Above RBI’s 2022 Upper Tolerance Limit
Headline Consumer Price Inflation (CPI) is likely to remain outside the RBI’s upper tolerance limit of 6 per cent until the end of 2022 S&P Global Ratings said in quarterly economic update for Asia-Pacific Monday. The Reserve Bank of India meets on Friday with consensus split between expecting the RBI to hike by 35 or 50bps. With the US dollar on a rampage the resumption of currency weakness may move the needle to higher hikes. The rupee depreciated over the … Continue reading “Ahead of RBI Meeting S&P says Indian Inflation Likely Above RBI’s 2022 Upper Tolerance Limit”