Stay updated with live updates of the RBI’s Monetary Policy Committee (MPC) Meeting December 2024. Follow Governor Shaktikanta Das’s announcements on repo rate, interest rates, CPI inflation as well as GDP projections.
RBI Monetary Policy (MPC) Meeting Live Updates: RBI Governor Shaktikanta Das is set to announce the RBI MPC’s decision on the repo rate at 10 am today, Friday. Most analysts expect the status quo on the repo rate at 6.50% for the 11th time in a row. However, Nomura sees a 25-basis-point rate cut. Most analysts also feel that the RBI might cut CRR on Friday.
In the previous monetary policy in October, the RBI MPC had kept the repo rate unchanged at 6.5%. However, it had changed the monetary policy stance from ‘withdrawal of accommodation’ to ‘neutral’.
The repo rate is 6.50%, unchanged since February 2023. CRR remains at 4.5%, while the statutory liquidity ratio stands at 18 percent.
The repo rate is the interest rate at which the RBI lends money to banks to meet short-term needs. CRR is the percentage of a bank’s total deposits that must be kept in cash with the RBI, whereas SLR is the portion of a bank’s net demand and time liabilities (deposits) that must be held in the form of gold, cash, or government-approved securities.
The RBI is mandated to keep CPI inflation in the range of 2-6%. It uses repo rate, reverse repo rate, CRR, and other instruments to control inflation.
Currently, the RBI projects the CPI inflation at 4.5% for FY25. According to analysts, the central bank may have to revise it upwards to 4.8%, due to a recent spike in the inflation rate to 6.2% in October.
On the GDP growth front, the central bank had projected a 7.2% GDP growth for FY25. It is likely to be revised on Friday following the latest September 2024 quarter numbers that showed India’s GDP growth slowing to a seven-quarter low of 5.4%.
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RBI MPC Meeting LIVE Updates: Will Governor Das get extension?
The December MPC meeting is particularly significant for RBI Governor Shaktikanta Das, as his term is set to conclude next week. With no official announcement on an extension yet, Das faces the challenging task of balancing slowing economic growth—potentially requiring a rate or CRR cut—with ongoing inflationary pressures that may necessitate keeping rates unchanged.
Reports suggest that Das is likely to receive an extension, with speculation pointing to a two-year term, though it remains unclear whether he will be granted a full three-year extension. As his second term comes to an end on December 12, all eyes are on how he handles this critical decision-making period.
RBI MPC Meeting LIVE Updates: What Does CRR Mean?
The Cash Reserve Ratio (CRR) is the proportion of a bank’s total deposits that it must hold as liquid cash with the Reserve Bank of India (RBI) as a reserve. The RBI periodically determines the CRR percentage, which is currently set at 4.5%. Banks do not earn any interest on the funds held under this requirement.
The CRR serves as a key tool for the RBI to control inflation and curb excessive lending, thereby maintaining financial stability in the economy.
RBI MPC Meeting LIVE Updates: How a CRR cut can boost lending and support growth
A 50 basis point (bps) reduction in the Cash Reserve Ratio (CRR) by the RBI could release between Rs 1.1 lakh crore and Rs 1.2 lakh crore for lending, while a smaller 25 bps cut would free up Rs 55,000 crore to Rs 60,000 crore. With more funds available to banks, this move could help stimulate economic growth.
A CRR cut can boost growth without stoking inflation, while also easing the challenges created by the RBI’s interventions in the foreign exchange market to manage the rupee’s depreciation. Experts also suggest that the RBI may explore additional measures, such as foreign exchange swaps and open market operations (OMOs), to further enhance liquidity.
RBI MPC Meeting LIVE Updates: Kotak anticipates CRR cut but no repo rate change
In its latest report, Kotak highlighted that the slowdown in GDP growth increases the chances of early policy actions. The firm anticipates a phased 50-basis-point CRR cut by the Reserve Bank of India (RBI) at the upcoming MPC meeting, which could inject Rs 1.2 lakh crore into the economy, signaling the start of a monetary easing cycle. However, Kotak Equities expects the RBI to maintain the repo rate at its current level, citing the persistently high inflation in October-November and global economic challenges.
RBI MPC Meeting LIVE Updates: ‘Markets have already factored in the likelihood of no rate cuts in December,’ says Anand Rathi
Narendra Solanki, Head of Fundamental Research at Anand Rathi, says, “Markets have already factored in the likelihood of no rate cuts in December. Attention will now turn to the Governor’s commentary.”
RBI MPC Meeting LIVE Updates: Market Expectations: Rate Cut or Market Stability?
Gaurav Garg, Research Analyst at Lemonn Market Desk, noted that while the market expects a rate cut, any deviation from this expectation could disrupt market momentum. He believes the RBI may prioritize economic stability over immediate market sentiments, opting to delay rate cuts until inflation aligns with its target.
RBI MPC Meeting LIVE Updates: Manoj Gaur, CMD of Gaur Group and President of CREDAI NCR, on Rate Cuts
Manoj Gaur emphasized that while a repo rate cut could provide relief to homebuyers, maintaining stability in the market is also important. He believes the RBI may signal a future rate cut, which would be beneficial for buyers, especially in the affordable housing segment.
RBI MPC Meeting Live Updates: What will happen to Sensex, Nifty if RBI Governor Shaktikanta Das doesn’t cut repo rate today?
Indian share markets are closely watching for a potential liquidity boost from the Reserve Bank of India’s (RBI) bi-monthly monetary policy announcement later today (Friday, December 6). While the Sensex and Nifty rose 1 percent on Thursday, investors are eager to see whether RBI Governor Shaktikanta Das and the Monetary Policy Committee (MPC) will implement a repo rate or cash reserve ratio (CRR) cut in light of signs of an economic slowdown.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted, “The rate cut cycle has begun in the US, though it has yet to start in India. The RBI will likely begin easing rates soon, even if not in today’s policy announcement. With potential rate cuts in the second half of the year, interest rate-sensitive sectors stand to benefit.”
Ajit Mishra, SVP-Research at Religare Broking, mentioned that markets are expecting liquidity measures but cautioned about a “knee-jerk reaction, especially in the banking sector, if the outcome differs from expectations.”
Kunal Rambhia, Fund Manager and Trading Strategist at The Streets, stated that dovish policy expectations are already factored into the market. “If the outcome is not as anticipated, we could see profit booking. The indices may not present a good risk-reward at these elevated levels, making a stock-specific approach more sensible,” he added.
RBI MPC Meeting Live Updates: RBI’s Inflation Task
The government has instructed the RBI to maintain the consumer price index (CPI) inflation at 4%, with a permissible variation of 2% above or below this target.
RBI MPC Meeting Live Updates: Real Estate Developers’ Expectations – Pradeep Aggarwal, Founder & Chairman of Signature Global
Any rate reduction could stimulate demand and strengthen the sector’s contribution to India’s economic growth.
RBI MPC Meeting Live Updates: Real Estate Developers’ Expectations – Mohit Kalia, Vice President of Raheja Developers
A repo rate cut would ease the burden of rising loan interest rates and stabilize the market, encouraging investment.
RBI MPC Meeting Live Updates: Real Estate Developers’ Expectations Ahead of the RBI MPC Decision
Real estate developers are anxiously awaiting the RBI’s decision, hoping for a rate cut or, at the very least, a more accommodative stance that could indicate a future reduction. With rising property prices and monthly mortgage payments increasingly squeezing homebuyers, many are hoping for relief.
RBI Policy Meeting Live Updates: How a CRR cut will impact Indian economy?
Suman Chowdhury, Executive Director and Chief Economist at Acuité Ratings, highlighted that the economic outlook is marked by uncertainty about growth and a cautious stance on inflation.
A CRR cut would infuse liquidity into the banking system, boosting economic activity without directly altering the repo rate. Chowdhury expects a high likelihood of a 50-basis point reduction in the CRR between December 2024 and February 2025, bringing it down from 4.5% to 4%.
RBI Monetary Policy Meeting Live Updates: D-Street momentum
India’s major equity indices surged for the fifth consecutive session on Thursday, rising nearly 1% driven by expectations of a CRR cut in Friday’s monetary policy review and short covering by foreign traders. The NSE Nifty gained 240.95 points (0.98%), reaching 24,708.4, while the BSE Sensex jumped 809.53 points (1%), closing at 81,765.86.
RBI Monetary Policy Meeting Live Updates: RBI Might Opt for CRR Cut Instead of Repo Rate Reduction
M Govind Rao, member of the 14th Finance Commission and former director of the National Institute of Public Finance and Policy, noted that the MPC faces the challenge of stimulating growth amid a slowing economy while managing inflation. He believes the RBI may maintain the current repo rate but could consider a marginal reduction in the Cash Reserve Ratio (CRR) to ensure adequate liquidity.
RBI Monetary Policy Meeting Live Updates: Recap of the October 2024 RBI MPC Meeting – Key Highlights & Outcomes
- Repo rate kept unchanged at 6.5%.
- The RBI has maintained this rate since February 2023.
- The monetary policy stance was shifted to ‘neutral’.
- GDP growth forecast for FY25 remained at 7.2%.
- Inflation projection for FY25 retained at 4.5%.
- UPI123PAY (for feature phones) transaction limit doubled to Rs 10,000.
- UPI Lite wallet limit increased to Rs 5,000, with a per-transaction limit raised to Rs 1,000.
RBI MPC Meeting Live Updates: Meet the MPC members
The Monetary Policy Committee (MPC), led by RBI Governor Shaktikanta Das, consists of three external members who serve a four-year term, with their appointments made by the central government. Recently, the government appointed three new external members to the committee: Saugata Bhattacharya, Economist; Dr. Nagesh Kumar, Director and Chief Executive of the Institute for Studies in Industrial Development; and Professor Ram Singh, Director of the Delhi School of Economics, University of Delhi.
The internal members of the MPC include Shaktikanta Das as the Chairperson, Michael Debabrata Patra, RBI Deputy Governor in charge of monetary policy, and Rajiv Ranjan, Executive Director of the RBI’s Monetary Policy Department.
RBI MPC LIVE Updates: What Happens to Your Home Loan Rates If RBI Keeps the Repo Rate Unchanged for the 11th Consecutive Time?
The Reserve Bank of India’s (RBI) repo rate plays a crucial role in determining home loan rates. Homebuyers eagerly await the RBI’s upcoming decision, as it will directly impact loan interest rates, including those for home loans in India.
When the RBI raises the repo rate, banks generally increase their lending rates, resulting in higher home loan interest rates (both fixed and floating). Conversely, a decrease in the repo rate leads to lower lending rates, making home loans more affordable. Borrowers with floating interest rates will feel the effect immediately or at their next rate reset.
For homeowners or those paying Equated Monthly Installments (EMIs), a stable repo rate means their interest rates will remain unchanged for now.
RBI Monetary Policy 2024 Live: Buzz Surrounding the New RBI Governor
The policy press conference is likely to be filled with questions about whether Governor Das will receive an extension or who his successor might be, if no clarity is provided before Friday. His term is set to end on December 10, 2024. When Das was last extended in 2021, the government had announced it over a month in advance.
RBI Monetary Policy 2024 Live: Analysts Expect CRR Cut
To ease liquidity, analysts anticipate that the RBI may reduce the Cash Reserve Ratio (CRR), the portion of deposits that banks are required to hold as reserves with the central bank. Upasna Bhardwaj, an economist at Kotak Mahindra Bank Ltd., stated that a CRR cut would serve as a soft signal for an upcoming monetary easing cycle.
RBI Monetary Policy December 2024 Live: Additional Liquidity Measures Expected
Economists also expect the RBI to introduce measures to address liquidity concerns. Recent capital outflows and pressure on the rupee have added complexity to the policy outlook. The rupee has hit new lows, and any easing of monetary policy could further weaken the currency by reducing the interest rate differential with the US.
Tight liquidity conditions have resulted from the central bank’s large forex interventions and currency outflows from the banking system. According to ICICI Securities Primary Dealership, the core banking system liquidity surplus has dropped to Rs 1.2 trillion, down from Rs 4.5 trillion at the end of September.
RBI Monetary Policy December 2024 Live: More MPC Members May Vote for a Rate Cut
In the October meeting, external member Nagesh Kumar voted in favor of a 25 basis point rate cut. With increasing calls for a reduction in interest rates, more MPC members may join him in supporting a rate cut. Madhavi Arora, an economist at Emkay Financial Services Ltd., anticipates that at least two members may vote for lowering the key rate to support growth.
RBI Monetary Policy December 2024 Live: Growth-Inflation Divergence Poses a Dilemma for the RBI MPC
The RBI faces a tricky dilemma with the ongoing divergence between growth and inflation. Volatile food prices pushed headline inflation to 6.2% in October, the fastest pace in over a year. According to Radhika Rao, an economist at DBS Bank, this growth-inflation divergence will create a difficult decision for the RBI MPC. She expects the RBI to lower its full-year growth projection by 30-40 basis points and revise its inflation forecast upwards from the current 4.5%.
RBI MPC LIVE Updates: Das & Co. May Lower GDP Forecast
The central bank’s growth forecast of 7.2% for the fiscal year through March 2025 is now at risk after the 160-basis point miss in the second-quarter GDP figures. Economists, including those from Goldman Sachs, have revised their growth projections downward, with Goldman now predicting a 6% expansion, down from a previous estimate of 6.4%.
RBI Monetary Policy December 2024 Live: A Shift in the MPC’s Policy Narrative is Inevitable
“We believe a shift in the MPC’s policy narrative is inevitable, starting with acknowledging the growth slowdown and the need for counter-cyclical support,” said Teresa John, an economist at Nirmal Bang Institutional Equities Ltd., to Bloomberg. While the RBI may hold off on rate cuts until next year, she noted that a surprise move cannot be entirely ruled out.
RBI Monetary Policy Meet December 2024: Inflation & Growth Remain Key Challenges for Shaktikanta Das
Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal have both called for lower borrowing costs in recent months. Some economists are urging the RBI to take further action to stimulate lending and drive growth. Governor Das is under pressure to tackle both inflation and growth challenges, with his six-year term set to end next week, and no clear indication of an extension.
RBI Monetary Policy Meet December 2024: Rate Cut Unlikely
Governor Shaktikanta Das has repeatedly ruled out an immediate rate cut, despite the RBI adopting a neutral stance in its October meeting. Inflation continues to remain above the RBI’s 4% target. However, the weaker-than-expected GDP growth of 5.4% for the July-September period is raising concerns that the RBI’s restrictive policies may be impacting economic activity.
RBI Monetary Policy Meet December 2024: RBI Kept Its Policy Rates Unchanged Over The Last Ten Meetings
Over the last ten meetings, the RBI has kept its policy rates unchanged at 6.5%. The central bank has taken a more hawkish stance on inflation, primarily due to persistent food price inflation that has not been effectively contained. At the same time, it remains optimistic about growth, driven by favorable monsoon rains and expectations of a revival in capital expenditure.
RBI Monetary Policy Meet December 2024: Shaktikanta Das To Announce Repo Rate Decision Today
The RBI is set to announce its interest rate decision today, as the country grapples with high inflation and sluggish GDP growth. Stay tuned for the latest updates and detailed analysis on India’s economic outlook.
