RBI MPC Live Updates: 'Will Have To Hold Inflation Horse In Tight Leash,' Says Governor Das

09/10/2024 16:58:56

MPC's Decision Would Add Confidence Among Home Buyers, Says Sundream Group CEO

Harsh Gupta, CEO, Sundream Group, explained that the MPC's decision will help add to the confidence among buyers, specifically during the festive season when commercial real estate is seeing good sales. "A stable repo rate provides reliability and confidence to home buyers. This stability directly impacts the growth of the real estate sector, which in turn plays a crucial role in contributing to India's GDP and future growth prospects," he noted.

09/10/2024 16:37:52

RBI MPC's Decision Helps All Stakeholders In Real Estate Sector: Excentia Infra Director

Manit Sethi, Director, Excentia Infra, welcomed the RBI MPC's decision on benchmark interest rates. "It aligns with the country's growth prospects and rapid infrastructural development. This stability benefits all stakeholders in the real estate sector—homebuyers, developers, and financial institutions alike and encourages real estate development in tier 2 cities," the executive said.

09/10/2024 16:09:29

RBI's Monetary Policy Marks Key Moment For Financial Sector: Tata Capital CEO

Rajiv Sabharwal, MD and CEO, Tata Capital, noted that this decision from the RBI to observe a 'neutral' stance will mark an important moment for the financial sector. This means that the monetary policy will undergo a possible transition as inflationary pressures relax. "The real takeaway is the RBI's nuanced approach—balancing growth ambitions with the need for financial prudence," the executive said.

09/10/2024 15:18:46

Escalation In Geopolitical Issues Impacted RBI's Decision: SAMCO MF CIO

Umeshkumar Mehta, CIO, SAMCO Mutual Fund, commented, "Predictability in RBI’s MPC decision of keeping our repo rate unchanged for the 10th consecutive time may be more from a position of maintaining status quo and not moving any factors given that our macros of growth and inflation are very well under control. This decision to wait and watch after the Fed cutting rates may also be because of the escalation in geo-political issues and increase in the US bond yields. Therefore, going forward too, there could be a divergence in stance to other economies, if the geopolitical issues escalate further or there is a change in stance from other economies."

09/10/2024 14:50:42

Urban And Rural Demand Estimated To Pick Up, Says Muthoot Finance MD

George Alexander Muthoot, MD, Muthoot Finance, lauded the decision of the MPC to maintain the status quo on benchmark interest rates. "This balanced approach allows the financial sector to respond effectively to evolving economic conditions. Despite global challenges, the Indian economy has demonstrated remarkable resilience, and it’s encouraging to see a revival in investment activities. Additionally, rural demand is on the rise, driven by favorable agricultural activities, which fuels our optimism for sustained growth. As we approach the festive and wedding season, we anticipate further uptick in both urban and rural demand, creating a positive environment for gold loans," the expert said.

09/10/2024 14:16:38

RBI's Decision To Enhance UPI Limits Will Help Feature Phone Users, Says Kredit.Pe Founder Prashant Kumar

Prashant Kumar, founder and CEO, Kredit.Pe, stated that the change in UPI limits should help promote the adoption of the payment system amongst diverse user groups. "The UPI 123 Pay feature is available for non-smart phone users who can use these services without any internet connectivity. Meanwhile, the UPI Lite wallet feature allows small-value transactions directly from a UPI lite account which is as good as a wallet and requires no bank authorisation. The Reserve Bank of India has been consistently making announcements to enhance the use of digital payments and this is a welcome step which will ease transactions for feature phone users who will have the freedom to make high-value transactions without having to visit a bank," the expert said.

09/10/2024 13:53:13

Change In Stance Indicates Possible Cut In Key Rates In Future: Colliers India's Vimal Nadar

Vimal Nadar, Head of Research, Colliers India, “While RBI has kept the benchmark lending rates unchanged at 6.5 per cent, a change in stance from “withdrawal of accommodation” to “neutral” indicates its clear direction for a possible reduction in interest rates in the foreseeable future. This ongoing stability in repo rate should provide a significant thrust to residential real estate during these festive months as home loan interest rates are likely to remain steady.

09/10/2024 13:34:19

India Is Focused On Its Economic Landscape Rather Than Following Global Cues: Expert

Ashwin Chadha, CEO of India Sotheby's International Realty, said, “We were more hopeful of a rate cut this time around after moves by the US Federal Reserve and other central banks. But the RBI’s decision to hold the repo rate steady for the 10th time in a row shows that India is laser-focused on its own economic landscape rather than following global cues."

09/10/2024 13:11:46

RBI’s Stable Approach Promotes Overall Stability: Expert

Dharmendra Raichura, VP and Head of Finance at Ashar Group, said that RBI’s stable approach promotes overall stability, supporting economic momentum while keeping inflation within control. "The RBI has maintained its inflation forecast at 4.5 per cent for FY2025, reflecting cautious optimism, alongside a solid GDP growth projection of 7.2 per cent. Further liquidity measures are in place to uphold financial stability in the market," he added.

09/10/2024 12:51:53

A Status Quo Is The Next Best Outcome For Real Estate Sector: Expert

Mohit Jain, Managing Director of Krisumi Corporation, said, "The apex bank's stance to keep the rates unchanged for the tenth consecutive time is on the expected lines. While the real estate industry was hoping for an interest rate reduction, a status quo is the next best outcome for the industry. Stable rates ensure consistent EMIs, giving homebuyers the confidence to plan their purchases."

09/10/2024 12:42:03

Outlook For Crude Oil Prices Is Softer Than It Is Today: RBI Deputy Governor

RBI Deputy Governor Michael Patra stated that the outlook for crude oil prices appears to be softer than current levels. He explained that OPEC+ plans to restore production through 2025 gradually, and international energy forecasts indicate that demand for crude oil is expected to decline. Additionally, the rise of renewable energy sources contributes to this softer outlook for crude oil prices.

09/10/2024 12:21:55

'We Are Confident That Inflation Is Moderating,' Says Das

RBI Governor Shaktikanta Das said they are confident that inflation is moderating, but we remain acutely aware of significant risks. He explained that the decision to change the stance was based on the favourable balance between growth and inflation, indicating that the timing for this adjustment is appropriate.

09/10/2024 12:12:13

India's Growth Story Remains Intact: Das

The post-MPC press conference with Shaktikanta Das has officially commenced. During his address to the media, the RBI Governor stressed that "India's growth story remains intact," highlighting the resilience of the country's economy. He also underscored the necessity for increased vigilance regarding inflation, signalling the importance of monitoring price stability as part of the overall economic strategy.

09/10/2024 12:03:21

The RBI's Decision To Hold Rates Steady Aligns With Expectations: Expert

Pradeep Aggarwal, Founder and Chairman of Signature Global, said, "The RBI's decision to hold rates steady aligns with expectations to keep inflation under check. While the recent rate cut by the US Federal Reserve has sparked similar hopes in India, the domestic situation remains distinct, with the central bank prioritizing inflation management within its target range."

09/10/2024 12:03:15

The RBI's Decision To Hold Rates Steady Aligns With Expectations: Expert

Pradeep Aggarwal, Founder and Chairman of Signature Global, said, "The RBI's decision to hold rates steady aligns with expectations to keep inflation under check. While the recent rate cut by the US Federal Reserve has sparked similar hopes in India, the domestic situation remains distinct, with the central bank prioritizing inflation management within its target range."

09/10/2024 11:19:37

A Rate Cut Would Have Given A Golden Opportunity To Real Estate Sector: Expert

Ramani Sastri, Chairman and MD of Sterling Developers, said that the RBI has once again kept the repo rate unchanged, implying that there will be no immediate effect on home loan EMIs. “While the real estate sector has witnessed robust growth in recent years in the context of continuous demand, a rate cut would have given a golden opportunity to reinvigorate the real estate market with reduced interest rates ahead of the festive season, which is a crucial period for real estate sales,” Sastri said.

09/10/2024 11:07:03

If Inflation Stays Low, We May See Rate Cuts In Future: BankBazaar's CEO

Adhil Shetty, CEO of BankBazaar.com, said, "Following the Reserve Bank of India's (RBI) monetary policy review, which concluded today, the committee has decided to keep the repo rate unchanged at 6.5% for the 10th consecutive time in a bid to control inflation. The central bank cited inflation numbers and geopolitical tensions as risks facing the economy's growth. However, in a departure from the previous few policy reviews, RBI has shifted its stance from being accommodative to neutral. Based on how the situation unfolds in the near future, this signals that the central bank is ready to go either way - if inflation stays low, we may see rate cuts in the future. However, at present, it is a wait-and-watch situation."

09/10/2024 10:56:09

The Global Economy Has Remained Resilient: Das

RBI Governor Shaktikanta Das said, "The global economy has remained resilient and is expected to maintain stable momentum over the rest of the year amidst downside risks from intensifying geopolitical conflicts. In India, real gross domestic product (GDP) registered a growth of 6.7 per cent in Q1:2024-25, driven by private consumption and investment."

09/10/2024 10:52:53

GDP Growth Expected At 7.2% For FY25: RBI

The Reserve Bank of India (RBI) has maintained its real GDP growth forecast for India at 7.2 per cent for the fiscal year 2025, announced by Governor Shaktikanta Das.

09/10/2024 10:46:11

Banks, NBFCs Must Pay Continuous Attention To Issues: Das

RBI governor Shaktikanta Das said that the RBI is closely monitoring incoming data on credit cards, microfinance institution (MFI) loans, and unsecured loans. He stressed that banks and non-banking financial companies (NBFCs) must pay continued attention to issues such as inoperative accounts, mule accounts, and the cybersecurity landscape, among other factors. While NBFCs have experienced impressive growth in recent years, some are expanding aggressively without establishing robust underwriting practices. In some instances, retail targets are driving growth rather than actual demand. Although self-correction by NBFCs is the preferred approach, the RBI is vigilant and ready to take action if necessary.

09/10/2024 10:42:53

UPI Transaction Limit Is Hiked To Rs 10,000

RBI governor Shakti Kanta Das said the transaction limit will be raised from Rs 5,000 to Rs 10,000 to encourage wider adoption of the Unified Payments Interface (UPI). This increase aims to facilitate larger transactions and enhance users' accessibility and convenience of the digital payment system. In addition, the UPI Lite wallet limit has been raised from Rs 2,000 to Rs 5,000.

09/10/2024 10:36:25

Transmission To The Credit Market Has Been Satisfactory: Das

RBI Governor Das said that the transmission to the credit market has been satisfactory, and the exchange rate of the Indian rupee has remained stable and range-bound relative to other emerging market currencies. Throughout the current financial year, the Indian rupee has largely maintained this stability and has been one of the least volatile currencies in the market.

09/10/2024 10:31:00

Food Inflation Could Ease: Governor Das

Governor Das noted during the MPC announcement that food inflation pressures could ease, thanks to favourable conditions from kharif sowing and adequate soil moisture. He also indicated that core inflation seems to have reached its lowest point.

09/10/2024 10:27:32

Inflation Expected To Rise To 4.8% In Q3: RBI Governor Shaktikanta Das

RBI Governor Shaktikanta Das indicated that inflation is expected to rise to 4.8 per cent in the fiscal third quarter. For FY25, the overall inflation rate is projected at 4.5 per cent, with estimates of 4.8 per cent for Q3, 4.2 per cent for Q4, and 4.3 per cent for Q1 FY26.

09/10/2024 10:23:08

Excessive Rainfall Negatively Impacted Several Sectors: RBI Governor

The RBI governor said that output from the eight core industries declined by 1.8 per cent in Q1, although government consumption is showing signs of improvement. However, excessive rainfall negatively impacted several sectors, particularly electricity, coal, and cement.

09/10/2024 10:19:57

Overall Growth Rate Projected At 7.2%: Governor

RBI Governor Shaktikanta Das announced the growth estimates for FY25, projecting an overall growth rate of 7.2 per cent. For the fiscal year, the estimates are as follows: 7.3 per cent for Q1, 7.0 per cent for Q2, 7.4 per cent for both Q3 and Q4 for FY26.

09/10/2024 10:15:33

Moderation In Inflation To Remain Slow And Uneven: Governor

During the monetary policy announcement, RBI Governor Shaktikanta Das said moderation in inflation remains slow and uneven.

09/10/2024 10:12:41

RBI Governor Shaktikanta Das Keeps Repo Rate Unchanged

The Reserve Bank of India (RBI) decided to keep the benchmark interest rate steady at 6.5 per cent on Wednesday, marking the tenth consecutive meeting without any changes to the rate. After assessing the macroeconomic conditions and future outlook, the Monetary Policy Committee (MPC) voted to keep the policy rate at 6.5 per cent, with 5 out of 6 members in favour, Governor Shaktikanta Das announced.

09/10/2024 09:54:30

When And Where To Watch RBI Monetary Policy Meeting Live

RBI Governor Shaktikanta Das, who chairs the Monetary Policy Committee (MPC), is set to announce the outcomes of the three-day discussions by 10 am. People can watch him announce the repo rate decision live on RBI's YouTube channel and their X (formerly Twitter) page. ABP Live will also provide live updates from the press conference, along with insights on the implications for various sectors and the overall Indian economy.

09/10/2024 09:45:47

Shift In Stance On Repo Rate Is Possible: Emkay Global Financial Services

Emkay Global Financial Services suggests that a shift in stance during the upcoming meeting is possible, which could be interpreted by the market as a signal to create room for future rate cuts. However, the RBI is likely to emphasise its commitment to being "actively disinflationary" and will adopt a wait-and-watch approach to evaluate various macroeconomic factors.

09/10/2024 09:23:26

Nifty Opens Above 25,000, Sensex Up 170 Points Ahead Of RBI MPC Announcements

Ahead of RBI MPC announcements, Indian benchmark indices opened higher on Wednesday, with Nifty nearing 25,000. The Sensex rose by 137.02 points, or 0.17 per cent, to reach 81,771.83, while the Nifty increased by 43.60 points, or 0.17 per cent, to stand at 25,056.80. Advancements were seen in 2,046 shares, 498 shares declined, and 89 remained unchanged.

09/10/2024 09:16:57

Overall Outlook For Economic Growth Remains Robust: Report

“We anticipate that the MPC will maintain the current policy rate and stance. The commentaries from the newly inducted external members will be closely monitored to gauge future policy directions. Overall, we expect the governor to have a dovish tone, laying the groundwork for a shallow rate cut in the coming months,” said CareEdge Rating in its report.

The overall outlook for economic growth remains robust. A resurgence in private consumption demand, coupled with early indicators of increased private investment, is promising for the economy as a whole.

09/10/2024 09:03:46

'A Shift To A Neutral Stance Remains A Possibility': HDFC Securities MD

Dhiraj Relli, MD and CEO of HDFC Securities stated that while they do not anticipate the RBI to initiate a rate cut cycle, a shift to a neutral stance remains a possibility. “The MPC may keep the repo rates steady at 6.50 per cent for the 10th consecutive time. Although it remains a close call, the RBI could very well deliver a no-change policy while only changing its tone towards the dovish side,” said Relli.

09/10/2024 08:50:49

Expert Believes Ongoing Policy Support Will Fuel Growth In The EV Sector

Ayush Lohia, CEO of Lohia, a manufacturer of electric three-wheelers (E3Ws), stressed the importance of ongoing policy support to fuel growth in the EV sector. "I strongly urge access to low-interest loans or debt financing options to facilitate the adoption of E3Ws among consumers and fleet operators also we are looking for tax benefits or exemptions to make E3Ws more affordable for consumers and profitable for manufacturers," he said.

09/10/2024 08:33:06

RBI Likely To Announce Rate Cut In December, Says Expert

Dhruv Agarwala, Group CEO of Housing.com, anticipates that the RBI will maintain the current repo rate. "Although inflation is largely aligned with the RBI’s 4 per cent target, estimates for September's CPI stand at 5.2 per cent, a significant rise from August's 3.7 per cent," he said.

He mentioned that although a combination of slowing growth and decreasing inflation might open the door for a rate cut as early as December, prospective homebuyers in India may need to exercise patience before experiencing any further relief in borrowing costs.

09/10/2024 08:15:43

We Expect RBI To Keep The Policy Repo Rate At 6.5%: Expert

"We expect the RBI to keep the policy repo rate (currently at 6.50 per cent) and stance (withdrawal of accommodation) unchanged in the upcoming October monetary policy meeting, though we feel strongly that the stance should be changed to neutral, considering the change in global rates cycle and potential risks to India's growth momentum going forward," said Kaushik Das, chief economist, India & South Asia, Deutsche Bank.

RBI MPC Highlights: Sensex Settles Under 81,500, Nifty Slips Over 30 Points After Status Quo Maintained On Key Rates

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