RBI Monetary Policy HIGHLIGHTS: Shaktikanta Das-led MPC decides unanimously to leave repo rate unchanged at 6.5%, raises FY24 GDP growth forecast by 50 bps

RBI MPC Meet Dec 2023 LIVE Update | RBI seems comfortable that growth is not inflationary but rather real demand-led at current policy rate, says Anitha Rangan

Anitha Rangan of Equirus points out that the MPC's decision not to lower its inflation estimates suggests that the central bank is comfortable that at the current policy rate, growth is not inflationary but rather led by real demand. 

"While sounding a point of caution on food inflation getting entrenched and being watchful of the second round effects, the RBI Governor also noted comfort on moderation in core and other components in headline inflation. In summary, while reiterating their stance of remaining vigilant and watchful, there was a tone of comfort with most global central banks remaining on pause. A pro-growth policy without too much worry on inflation," Rangan adds. 

Read more on how economists, analysts and experts are reading the December 8 RBI policy

RBI MPC Meet Dec 2023 LIVE Update | Expect liquidity to stay comfortable, rangebound in near term but to tighten by March, says Madhavi Arora

Madhavi Arora of Emkay Global Financial Services points out that the policy outcome is "largely neutral for bonds and we see markets staying rangebound amid low year-end liquidity, with the 10-year yield hovering in the 7.20-7.30 per cent zone. However, the RBI’s consistent concern on the skewness of liquidity distribution in the banking system has now led them to allow reversal of liquidity facility under both SDF and MSF even on weekends. 

"On domestic dynamics, the RBI Governor sounded positive... We however see growth easing to less than six per cent comfortably in H2 and see FY24 (growth rate) at 6.6 per cent. The RBI’s FY25 GDP forecast for first three quarters looks healthy as well," Arora says. 

"Overall, the policy tone was comfortable, while MPC still insisting on keeping an eye on inflation and financial stability risk and active liquidity management. The MPC continues to stress the policy stance has to stay actively disinflationary, while supporting growth. We maintain that the RBI will stay vigilant, and it is unlikely to precede the Fed in any policy reversal in CY24," the economist adds. 

Catch how economists view the December 8 RBI policy

RBI MPC Meet Dec 2023 LIVE Update | Forex reserves at $604 billion as of December

Reserve Bank of India Governor Shaktikanta Das mentions that the country's forex reserves stand at $604 billion, as of December 1.

RBI MPC Meet Dec 2023 LIVE Update | Central bank maintains FY24 CPI inflation projection at 5.4% citing evenly balanced risks

The Reserve Bank of India projects consumer inflation—or the rate of increase in the consumer prices of a basket of goods and services—at 5.6 per cent in Q3 and 5.2 per cent in Q4.

It pegs inflation at 5.2 per cent in the first quarter of FY25, and 4.0 per cent and 4.7 per cent in the next two quarters, respectively. 

Image: Reuters

RBI MPC Meet Dec 2023 LIVE Update | Stable repo rate to keep momentum going for housing market, says property consultant 

Anuj Puri of ANAROCK Group describes the December 8 policy as "an extension of the festive bonanza that the RBI gave to the homebuyers in its last policy announcement".

"It gives homebuyers yet another opportunity to make cost-optimized home purchases. Considering the present trends, the housing market is on a bull run and unchanged home loan rates will only add to the overall positive consumer sentiments. Going forward, we may expect the momentum in housing sales to continue in the wake of the unchanged repo rates coupled with the resultant stable home loan rates and positive economic outlook on India," says Puri. 

Image: Unsplash

Read more on how other market voices view the December 8 RBI policy

RBI MPC Meet Dec 2023 LIVE Update | Shaktikanta Das says uncertain food prices to considerably influence inflation outlook ahead 

Reserve Bank of India Governor Shaktikanta Das mentions high frequency food price indicators pointing to an increase in prices of key vegetables "which may push CPI inflation higher in the near term". 

RBI MPC Meet Dec 2023 LIVE Update | Fudamentals of Indian economy remain strong, says Shaktikanta Das

Reserve Bank of India Governor Shaktikanta Das says that the fundamentals of the economy remain strong with banks and corporates showing healthier balance sheets, fiscal consolidation being on course, external balance remaining eminently manageable, and forex reserves providing cushion against external shocks.

Combined with consumer and business optimism, these factors create congenial conditions for sustained growth of the economy, he says. "Looking ahead, it is our endeavour to further build on these fundamentals which are the best buffer against global shocks in today’s uncertain world."

RBI MPC Meet Dec 2023 LIVE Update | Central bank to lay down guidelines for web aggregators of loan products to bring more transparency in digital lending, says Shaktikanta Das 

RBI MPC Meet Dec 2023 LIVE Update | Most rate-sensitive stocks stay firmly in the green after RBI announcements

Financial

Auto

Real estate

Consumer durables

Follow this link to catch latest updates on rate-sensitive stocks

RBI MPC Meet Dec 2023 LIVE Update | Signs of slowdown in global economy, says Shaktikanta Das

Reserve Bank of India Governor Shaktikanta Das says the global economy is displaying signs of a slowdown "though unevenly across geographies and sectors".

RBI MPC Meet Dec 2023 LIVE Update | India better placed to withstand uncertainties compared to many other economies, says Shaktikanta Das

Image: youtube.com/@reservebankofindia593

RBI MPC Meet Dec 2023 LIVE Update | Shaktikanta Das says government spending likely to further ease liquidity

RBI Governor Shaktikanta Das says that government spending will likely ease the liquidity situation in the system further.

RBI MPC Meet Dec 2023 LIVE Update | Shaktikanta Das says there is gradual turnaround in rural demand

Reserve Bank of India Governor Shaktikanta Das says that the economy is performing well and seeing a gradual turnaround in rural demand. 

He also says that the manufacturing sector did well during the rainy season, owing to easing input costs, and the eight core industries (collectively referred to as infrastructure output) performed well. 

RBI MPC Meet Dec 2023 LIVE Update | RBI remains committed to keep inflation within 200 bps of 4% over medium term

RBI MPC Meet Dec 2023 LIVE Update | MPC votes 5:1 to continue with 'withdrawal of accommodation' stance

Reserve Bank of India Governor Shaktikanta Das says that five out of the six MPC members voted to keep the policy stance at 'withdrawal of accommodation'. 

RBI MPC Meet Dec 2023 LIVE Update | RBI projects GDP growth at 6.4% in Q3 FY24

For the quarter ending December 2023, the RBI now projects GDP growth of 6.4 per cent, instead of the 6.0 per cent earlier. 

RBI MPC Meet Dec 2023 LIVE Update | BREAKING: RBI lifts FY24 GDP growth forecast by 50 bps to 7%

RBI MPC Meet Dec 2023 LIVE Update: Economy performing well led by domestic demand, says Shaktikanta Das

RBI Governor Shaktikanta Das says that the country's economy is performing well boosted by domestic demand. 

However, the RBI chief adds that good inflation readings of November and December are concerning. 

RBI MPC Meet Dec 2023 LIVE Update | BREAKING: Shaktikanta Das says MPC decides unanimously to leave repo rate unchanged at 6.5%

RBI MPC Meet Dec 2023 LIVE Update | Shaktikanta Das says Indian economy presents picture of resilience, momentum against unsettled global economic backdrop

Reserve Bank of India Governor Shaktikanta Das mentions that the country's real GDP growth for Q2 has exceeded all forecasts.

RBI MPC Meet Dec 2023 LIVE Update | Rupee opens 83.35 vs dollar

The rupee (INR) begins the day unchanged from its previous close at 83.35 against the greenback (USD). 

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RBI MPC Meet Dec 2023 LIVE Update | Rate-sensitive stocks to be in focus on Dalal Street today

Here's how some of the rate-sensitive stocks—or stocks of companies directly impacted by changes in benchmark interest rates—have fared in a month:

Financial

Auto

Real estate

Consumer durables

Follow this link to catch minute-by-minute updates on the stock market today

RBI MPC Meet Dec 2023 LIVE Update | What about inflation? Will Shaktikanta Das-led MPC change CPI inflation projections?

Three out of every 10 economists polled by Zee Business expect the RBI Governor-led Monetary Policy Committee to tweak consumer inflation projections in today's policy.  

Will RBI change its inflation projections?

• Yes: 30%
• No: 70%

Image: Pexels

RBI MPC Meet Dec 2023 LIVE Update | RBI will be holding on to key policy rates given easing inflationary pressure, says ICICI Securities' Prasenjit Basu

Prasenjit Basu, Chief Economist at ICICI Securities, expects the RBI to keep the policy repo rate unchanged at today's policy, citing CPI inflation moderating to 4.87 per cent in October and core CPI inflation to 4.5 per cent.

"The prospect of further easing in inflationary pressure is likely to result in the MPC moving to a neutral policy stance (from 'withdrawal of accommodation')," he says.

Read more on what economists expect from RBI

RBI MPC Meet Dec 2023 LIVE Updates: Will Shaktikanta Das announce a change in GDP estimates today?

All of the economists polled by Zee Business expect the Reserve Bank of India Governor-led Monetary Policy Committee (MPC) to change its GDP forecasts in today's policy. 

The country's economy is projected to grow 6.7 -7 per cent in the current financial year, according to several economists polled by news agency Reuters. Data released at the end of last month showed the country's GDP expanded 7.6 per cent in the July-September quarter, far exceeding estimates of a 6.8 per cent rise.

Stronger-than-expected GDP growth in the first half of FY24, along with continued government spending and some revival in private investment, has prompted economists to raise their growth forecast to higher than the government's estimate of 6.5 per cent.

Image: Reuters

RBI MPC Meet Dec 2023 LIVE Update: When can RBI announce first cut in repo rate in current cycle?

Out of the economists polled by Zee Business, while 70 per cent expect the RBI to start reducing benchmark interest rates after June 2024, the remaining 30 per cent expect it in April 2024. 

RBI MPC Meet Dec 2023 LIVE Update | Will RBI Governor Shaktikanta Das announce a pause or cut in repo rate today? Decision due at 10 am

Economists polled by Zee Business expect the RBI's all-powerful MPC to keep the repo rate paused in its December 8 statement, due at 10 am. 

Here's how the economists responded to the poll:

• Rate hike: 0%
• Rate cut: 0%
• No change: 100%

RBI MPC Meet Dec 2023 LIVE Update: Welcome to Zeebiz.com's blog on the last bi-monthly review of the central bank's Monetary Policy Committee (MPC)

Will RBI Governor Shaktikanta Das announce yet another pause in the repo rate, or the key interest rate at which the central bank lends short-term funds to commercial banks? Catch minute-by-minute news updates, LIVE analysts, market reaction, what economists say, and much more here.