RBI'S Monetary Policy Committee starts deliberation on policy rate

03 Décembre, 2020, 03:08 | Auteur: Auguste Feret
  • Eye on high retail inflation, RBI may maintain status quo

With the rate cuts unlikely, the RBI has infused liquidity into the system via targeted long-term repo operations, under which banks have been able to borrow up to Rs 1 lakh crore and invest in bonds in companies. RBI projected the country's GDP to contract 9.5 per cent in the current financial year due to the pandemic.

In the view of the Deutsche Bank Chief Economist Juliana Lee, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) is expected to maintain status-quo on the interest rates, although the tone may turn neutral in December when compared to a dovish tilt that was seen in October.

"As such, we think nurturing growth will remain central to monetary policy and the RBI is likely to repeat the guidance provided in the October policy review", said Bajoria. Supply side issues like higher commodity prices, unseasonal rains and labour shortages are the key reasons behind the high inflation, say analysts. He further said RBI may upgrade its growth outlook, wherein the central bank would scale down on its earlier pessimistic GDP projection of 9.5 per cent for 2020-21.

"We expect the RBI to retain the policy rate at 4 per cent and continue with the accommodative policy stance despite the buildup in inflationary pressures", Care Ratings said. On expectation from the RBI on policy rate front, Sachin Chhabra, founder, Peel-Works Pvt Ltd said active interventions by the government through stimulus measures and the central bank through the monetary policy have helped many segments of the economy to claw back to normalcy.

"On balance, we do expect a stronger rebound in economic activity in the second half of FY21, relative to our earlier assessment, with regional and sector unevenness in the pace of the recovery".

Ronaldo scores 750th goal in first Champions League match with female referee
In April 2020, Frappart refereed her first match in Ligue 1, and it was the first time a female had done so in that competition.

Bill Cosby’s sex assault conviction gets high court review
Jappe responded by saying the case would have boiled down to a "he-said, she-said" situation without the five women. Intoxicants were one of the common threads among those witnesses.

COVID-19 quarantine breach poses 'very significant risk' for South Australia
But SA Health says he was only ever identified as a casual contact and was not required to isolate for the full 14 days. Anyone who visited such locations should monitor symptoms and get tested if they appear.

Jyoti Prakash Gadia, Managing Director, Resurgent India opined the RBI is expected to follow a "wait and watch" approach while deciding about the repo rate this week.

"However, the accommodative stance would persist to support the expected economic revival that continues to be threatened by the pandemic", said Suman Chowdhury, Chief Analytical Officer, Acuite Ratings & Research. It also remains the best quarter-on-quarter growth since 1996 when the country started giving out quarterly numbers. Economists and market participants are closely watching the commentary from the RBI around liquidity.

In October, CPI (consumer price index) inflation grew to 7.61 per cent, its highest level since 2014.

In its October policy review, the committee chose to continue with the accommodative stance as long as necessary - at least during the current financial year and into the next financial year - to revive growth on a durable basis and mitigate the impact of Covid-19 on the economy, while ensuring that inflation remains within the target (of 4 per cent within a band of +/- 2 per cent) going forward.

Retail inflation in October touched a six-year high of 7.61 per cent.

Conseillé:



Populaire

Trump Threatens to Veto NDAA Over Section 230
This isn't the first time Trump has threatened to veto the defense bill. "First of all, 230 has nothing to do with the military". Mac Thornberry, the panel's top ranking Republican, noted too much is at stake with the legislation to derail efforts now.

US President-elect Joe Biden may appoint this Indian American as budget chief
Other nominees and appointees include Cecilia Rouse, who was selected to be chair of the Council of Economic Advisers. Biden also recently announced an all-female White House senior communications team.

Barça : Lionel Messi officiellement sanctionné pour son hommage à Diego Maradona
Un clin d'œil au passage du "Pibe de Oro" au sein du club argentin entre 1993 et 1995 (où il n'a disputé que cinq matches). L'ancien entraîneur de l'OM, aujourd'hui à Leeds United, est une figure de Newell's, dont le stade porte son nom.

Hailee Steinfeld Confirmed as Kate Bishop in Disney+’s Hawkeye Series!
In the comics, Bishop becomes Hawkeye after Clint Barton and is also a member of the Young Avengers. It was announced in September 2019 that Steinfeld was in talks for the role.

Bradley Walsh and Tosin Cole on their "Emotional" Doctor Who Departure
He said working "in Wales with everyone on the crew" was his highlight of being in the programme. Brad couldn't cope with it at all. " I have absolutely loved it, loved it ", Walsh added.

Mad Max actor Hugh Keays-Byrne dies aged 73
When quizzed on whether Gibson's or Hardy's portrayal of Max he preferred, the actor replied: "Comparisons are odious". He was also in the original Mad Max movie in 1979 where he played Toecutter. "Thanks for all the entertainment, sir".

Hyundai’s E-GMP EV platform with 499 km range revealed
The battery pack is mounted between the front and rear axles and is the most power-dense unit the Hyundai Motor Group has created. Improved handling and stability is also promised as a result of this new platform, thanks to the lower center of gravity.

Kevin Durant denies rumors he tried to recruit James Harden to the Nets
Harden has expressed his willingness to leave the Rockets and reunite with Durant in the Nets. But during a recent (virtual) sitdown with reporters, Durant denied the rumors outright.

It Started With a Cough, Ended With Rapper's Arrest at Disney
The worker was eventually diagnosed with a concussion, contusion and bruising to the head at Horizon West Hospital. According to the police report, a Disney World employee didn't think the stunt was amusing , and told SBS as much.

Magasinage dans les centres commerciaux : Québec resserre les mesures
À partir de ce vendredi 4 décembre, les magasins et les centres commerciaux auront l'obligation de limiter leurs capacités d'accueil.