LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

RBI Monetary Policy Key Highlights: From GDP growth, inflation to HRA, check out the top 15; disappointingly, 'calibrated tightening' in place

The Reserve Bank of India (RBI) today left the repo rate unchanged at 6.5 per cent, while maintaining the stance of 'calibrated tightening' of policy. This is the second time in a row that the central bank did not tinker with the interest rates. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
RBI Monetary Policy Key Highlights: From GDP growth, inflation to HRA, check out the top 15; disappointingly, 'calibrated tightening' in place
The decision on keeping the policy rate unchanged was unanimous, Ravindra H Dholakia voted to change the stance to neutral. Image source: Zee Business Twitter
Written By: ZeeBiz WebTeam
Updated: Wed, Dec 05, 2018
05:50 pm
New Delhi, ZeeBiz WebDesk
RELATED NEWS
RBI Monetary Policy December 2019: Surprise! No change in benchmark lending rate, repo still stands at 5.15 pc RBI Monetary Policy December 2019: Surprise! No change in benchmark lending rate, repo still stands at 5.15 pc
RBI cuts repo rates, Shaktikanata Das says, RBI cuts repo rates, Shaktikanata Das says, "Central bank will retain its accommodative stance"
RBI Monetary Policy October 2019: KEY TAKEAWAYS from fourth bi-monthly statement RBI Monetary Policy October 2019: KEY TAKEAWAYS from fourth bi-monthly statement
RBI policy announcement: Zee Business poll favours 0.25% rate cut RBI policy announcement: Zee Business poll favours 0.25% rate cut
CPI numbers tomorrow! Food, beverage, LPG prices, gold to play this major role CPI numbers tomorrow! Food, beverage, LPG prices, gold to play this major role

Governor Urjit Patel led MPC chose to play it safe and did not do what most of India, including the central government, wanted - cut rates! Instead, it chose to do the next best thing - stick with the status quo by keeping the repo rate at 6.50 pct. The Reserve Bank of India (RBI) today left the repo rate unchanged at 6.5 per cent, while maintaining the stance of 'calibrated tightening' of policy. This is the second time in a row that the central bank did not tinker with the interest rates. According to RBI statement, "The decision of the Monetary Policy Committee is consistent with the stance of calibrated tightening of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/-2 per cent, while supporting growth." 
 
The decision on keeping the policy rate unchanged was unanimous, Ravindra H Dholakia voted to change the stance to neutral. Top 10 key highlights of RBI's policy announcement are:
 
1. The central bank also retained the GDP growth projection for FY19 at 7.4 per cent. For the first half of 2019-20, the GDP growth has been projected at 7.5 per cent.
 
2. RBI said inflation in the second half of the current fiscal is projected at 2.7-3.2 per cent.
 
3. The reverse repo rate under the LAF remains at 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.
 
4. The inflation scenario has remained broadly unchanged in the US and the Euro area. In many key EMEs, however, inflation has risen, though the recent retreat in energy prices, tightening of policy stances by central banks and stabilising of currencies may have a salutary impact, going forward.
 
5. Private consumption slowed down possibly on account of moderation in rural demand, subdued growth in kharif output, depressed prices of agricultural commodities and sluggish growth in rural wages. 
 
6. Gross fixed capital formation (GFCF) expanded by double-digits for the third consecutive quarter, driven mainly by the public sector’s thrust on national highways and rural infrastructure, which was also reflected in robust growth in cement production and steel consumption. 
 
7. Growth of imports accelerated at a much faster pace than that of exports, resulting in net exports pulling down aggregate demand.
 
7. On the supply side, growth of gross value added (GVA) at basic prices decelerated to 6.9 per cent in Q2, reflecting moderation in agricultural and industrial activities. 
 
8. Growth in electricity, gas, water supply and other utility services strengthened. Services sector growth remained unchanged at the previous quarter’s level. Of its constituents, growth in construction activity decelerated sequentially, but it was much higher on a y-o-y basis. 8. 
 
9. According to the assessment of the Reserve Bank’s Industrial Outlook Survey (IOS), the overall business sentiment in Q3 remained stable, with sustained optimism about production and exports.
 
10. Retail inflation, measured by y-o-y change in CPI, declined from 3.7 per cent in September to 3.3 per cent in October. A large fall in food prices pushed food group into deflation and more than offset the increase in inflation in items excluding food and fuel. 
 
11. Adjusting for the estimated impact of an increase in house rent allowance (HRA) for central government employees, headline inflation was 3.1 per cent in October.

Watch this Zee Business video 

#ZBizHeadlines | बाजार बंद होने के बाद एक नजर इस वक्त की बड़ी खबरों पर। pic.twitter.com/5hwue5XRqc

— Zee Business (@ZeeBusiness) December 5, 2018

12. Within the food and beverages group, deflation in vegetables, pulses and sugar deepened in October. Among other items, there was a broad-based softening across food items, especially cereals, milk, fruits and prepared meals. Milk and milk products inflation softened caused by surplus supplies in the domestic market. 
 
13. Inflation in the fuel and light group remained elevated, driven by liquefied petroleum gas prices in October, tracking international petroleum product prices. 
 
14. CPI inflation excluding food and fuel accelerated to 6.1 per cent in October; adjusted for the estimated HRA impact, it was 5.9 per cent. Transport and communication registered a marked increase, pulled up by higher petroleum product prices, transportation fares and prices of automobiles. 
 
15. Inflation expectations of households, measured by the November 2018 round of the Reserve Bank’s survey, softened by 40 basis points for the three-month ahead horizon over the last round reflecting decline in food and petroleum product prices, while they remained unchanged for the twelve-month ahead horizon. 

 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
RBI Monetary policyBimonthly RBI monetary policyUrjit PatelEconomy
RELATED NEWS
RBI Monetary Policy December 2019: Surprise! No change in benchmark lending rate, repo still stands at 5.15 pc RBI Monetary Policy December 2019: Surprise! No change in benchmark lending rate, repo still stands at 5.15 pc
RBI cuts repo rates, Shaktikanata Das says, RBI cuts repo rates, Shaktikanata Das says, "Central bank will retain its accommodative stance"
RBI Monetary Policy October 2019: KEY TAKEAWAYS from fourth bi-monthly statement RBI Monetary Policy October 2019: KEY TAKEAWAYS from fourth bi-monthly statement
RBI policy announcement: Zee Business poll favours 0.25% rate cut RBI policy announcement: Zee Business poll favours 0.25% rate cut
CPI numbers tomorrow! Food, beverage, LPG prices, gold to play this major role CPI numbers tomorrow! Food, beverage, LPG prices, gold to play this major role

LATEST NEWS

7th Pay Commission Latest News: Check out these vacancies notified by UPSC; salary up to Rs 1,77,500 plus DA and other allowances

IIT Bombay releases GATE 2021 answer key—This is how you can check and raise objection

7th Pay Commission: CONFIRMED! 3% DA, DR hike for government employees, pensioners of THIS state from March 1

Covid 19 2nd phase vaccination drive from March 1: EXPLAINED! Who are eligible, required photo identity, advance self-registration—All you need to Know

ISRO First Mission in 2021: Indian rocket to launch Brazilian satellite, PM Modi picture on spacecraft, space privatisation and more

Petrol, diesel prices on February 27: Fuel prices hiked again today—check rates in your cities

Indian economy 2021: With 0.4% GDP growth in 3rd quarter, country out of technical recession

CBSE exam 2021: Class 10, 12 students should know THESE 10 points before appearing for board exams

Sovereign Gold Bond Scheme 2021: Issue Price fixed at Rs 4,662/gm

Stock Market Outlook: Nifty, Bank Nifty crucial levels REVEALED; Anil Singhvi explains key reasons behind massive fall

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved