LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • 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 MPC Minutes: Weakening domestic growth impulses prompted governor Shaktikanta Das to go for rate cut

Weakening of domestic growth impulses and global slowdown prompted RBI Governor Shaktikanta Das to vote for a 25 basis points cut in interest rate.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
RBI MPC Minutes: Weakening domestic growth impulses prompted governor Shaktikanta Das to go for rate cut
Shaktikanta Das' deputy Viral Acharya had favoured status quo in the repo rate, arguing that the Reserve Bank should wait for "some more time". Photo: Reuters
Written By: PTI
Updated: Thu, Apr 18, 2019
08:05 pm
Mumbai, PTI
RELATED NEWS
Bank Holiday April 2021: Banks to remain shut in coming weeks, is your city on this list? Bank Holiday April 2021: Banks to remain shut in coming weeks, is your city on this list?
Payments Banks users alert! Check new limit by RBI Payments Banks users alert! Check new limit by RBI
Your mobile wallet could act as debit card now, RBI unveils new initiatives for digital payments Your mobile wallet could act as debit card now, RBI unveils new initiatives for digital payments
Use cards, wallets? Important note from RBI on cash withdrawal, this balance hiked to Rs 200,000 Use cards, wallets? Important note from RBI on cash withdrawal, this balance hiked to Rs 200,000
Dr Reddy’s, Reliance Industries, Bharti Airtel, CONCOR to Barbeque Nation - here are top Buzzing Stocks today Dr Reddy’s, Reliance Industries, Bharti Airtel, CONCOR to Barbeque Nation - here are top Buzzing Stocks today

 

Summary: 

Picture caption: 

By PTI

Weakening of domestic growth impulses and global slowdown prompted RBI Governor Shaktikanta Das to vote for a 25 basis points cut in interest rate announced earlier this month, minutes of the Monetary Policy Committee (MPC) meeting showed Thursday.
However, his deputy Viral Acharya had favoured status quo in the key lending rate (repo), arguing that the Reserve Bank should wait for "some more time" for additional data before taking call on reduction in rate.

Another external expert on the six-member MPC Chetan Ghate too had voted against reduction in the repo rate. Four of the six MPC members had voted in favour of a 25 basis points reduction in the policy rate.

On April 4, the RBI had reduced the repo rate, or the rate at which it lend to banks, by 25 basis points to 6 per cent -- the lowest level in one year -- on softening inflation. It was the second rate cut in a row.

The central bank, however, kept monetary policy stance 'neutral' over uncertainty over monsoon. As per the minutes, Das said there has been further weakening of domestic growth impulses, with global growth slowdown posing major headwinds to India's exports since the last policy in February 2019.

During the three-day meeting of the MPC, he opined that high frequency indicators suggest a further loss of pace in growth. Private consumption has been weakening as reflected in deceleration in the growth of passenger car sales and domestic air passenger traffic, weak performance of consumer durables and non-durables, and continuing contraction in non-oil non-gold imports.

Das further said investment demand was losing traction and a deceleration in exports may further impact investment activity. "With the inflation outlook looking benign and headline inflation expected to remain below target in the current year, it becomes necessary to address the challenges to sustained growth of the Indian economy.

"Hence, I vote for reducing the policy repo rate by 25 basis points," Das had said, according to the minutes.

During the meeting, the Governor also said the RBI will continue to watch the evolving growth and inflation dynamics and act in time and act decisively while ensuring price stability on an enduring basis in pursuance of its mandate under the RBI Act.

Acharya, who voted against a rate cut, was of the opinion that signals from the domestic economy "are mixed". Capacity utilisation continues to improve which augurs well for future investment, and services growth remains robust. However, consumption demand shows signs of weakness.

"On balance, therefore, notwithstanding signs of weakness in growth evinced in high frequency economic indicators, I am inclined to wait for some more time for incoming data to resolve several important uncertainties that will shape the Indian economy in the coming one or two years," he had said.

As per the minutes, Ghate had opined that frequent changes in policy rates and stance runs the risk of introducing uncertainty and volatility "because of our own actions". He had advocated status quo in policy rate.

RBI Executive Director and MPC member Michael Debabrata Patra too had advocated a rate cut, along with external members Pami Dua and Ravindra Dholakia. 

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:
Reserve Bank of IndiaShaktikanta Das
RELATED NEWS
Bank Holiday April 2021: Banks to remain shut in coming weeks, is your city on this list? Bank Holiday April 2021: Banks to remain shut in coming weeks, is your city on this list?
Payments Banks users alert! Check new limit by RBI Payments Banks users alert! Check new limit by RBI
Your mobile wallet could act as debit card now, RBI unveils new initiatives for digital payments Your mobile wallet could act as debit card now, RBI unveils new initiatives for digital payments
Use cards, wallets? Important note from RBI on cash withdrawal, this balance hiked to Rs 200,000 Use cards, wallets? Important note from RBI on cash withdrawal, this balance hiked to Rs 200,000
Dr Reddy’s, Reliance Industries, Bharti Airtel, CONCOR to Barbeque Nation - here are top Buzzing Stocks today Dr Reddy’s, Reliance Industries, Bharti Airtel, CONCOR to Barbeque Nation - here are top Buzzing Stocks today

LATEST NEWS

Anil Singhvi’s Strategy April 19: Day support zone on Nifty is 14,350-14,450 & Bank Nifty is 31,400-31,700

Vivo X60 Pro review: Buy it for an amazing camera experience

CLSA says 2-wheeler recovery momentum slowing, downgrades Hero Motocorp, Bajaj Auto; maintains outperform on TVS Motor

Stocks to buy with Anil Singhvi: Sandeep Jain recommends Kopran Limited today - Big Money Tip

SIP STOCK: Anil Singhvi picks Orient Cement, says investors must make it part of their portfolio

Oppo A54 smartphone launched in India at starting price of Rs 13,490: Check camera, specifications, bank offer and more

Petrol, Diesel Price Today – Rates unchanged on Monday in 4 metros; Get prices in Delhi, Noida, Ghaziabad, other metros

India to open up COVID-19 vaccines to over-18s from May 1

WATCH: Mumbai pointsman saves child from being run over by train; Twitterati hails real-life hero, demands award for him

Delhi curfew, lockdown news: Arvind Kejriwal may ANNOUNCE curfew from Monday - Check all details here

  • 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