RBI keeps key policy rates on hold as uncertainties loom

RBI Monetary Policy Meet

RBI Monetary Policy Meet

RBI said inflation in the second half of the current fiscal is projected at 2.7-3.2 percent. Consequently, the reverse repo rate under the LAF will remain unchanged at 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.

This is the second time in a row that RBI has maintained status quo on interest rates.

The broad-based weakening of food prices imparts downward bias to the headline inflation trajectory going forward, the RBI said in its fifth bi-monthly monetary policy announced here.

The decision to pause on the policy repo rate, which was widely expected by bankers and economists, by the six-member Monetary Policy Committee (MPC) was unanimous.

Ban Ki-moon urges N. Korea to take denuclearization steps
The presumed birthday of North Korean leader Kim Jong-un remains unmarked in the North's calendars for 2019. But both Moon and Trump say fears of war on the Korean Peninsula have eased sharply.

In its previous policy review in October, the apex bank had projected the retail inflation to be around 3.9-4.5 per cent in the October-March period of 2018-19.

GDP growth retained at 7.4%: The MPC maintained GDP growth projections for 2018-19 has been projected at 7.4 per cent (7.2-7.3 per cent in H2) as in the October policy, and for H1:2019-20 at 7.5 per cent, with risks somewhat to the downside. However, only one member - Ravindra H Dholakia, former Professor, Indian Institute of Management, Ahmedabad - voted for a change in the monetary policy stance from "calibrated tightening" to "neutral".

Besides CRR, Banks have to invest certain percentage of their deposits in specified financial securities like Central Government or State Government securities. The economic growth in the second half of 2018-19 has been predicted at nearly 7.3 per cent. It expects inflation to quicken to 3.8-4.2% in the first half of the following year.

But, there are now clearer economic reasons for India to avoid going higher, analysts say. It is worth mentioning that the RBI, in its last bi-monthly meet in October, kept rates unchanged after two consecutive hikes starting June. "We perceive that India is slowly entering into a low inflation, slowing growth quadrant". PM Modi's government has faced criticism over the distress among farmers and small businesses.

Recommended News

  • 76ers' Markelle Fultz diagnosed with nerve condition

    76ers' Markelle Fultz diagnosed with nerve condition

    Thoracic outlet syndrome involves compression or irritation in the thoracic outlet (area between lower neck and upper chest). However, Wojnarowski also reports that the Sixers are hoping he's only sidelined three-to-six weeks.
    Premier League report: Brighton 3 Crystal Palace 1

    Premier League report: Brighton 3 Crystal Palace 1

    Yet the Seagulls made it 2-0 when Leon Balogun , on for the injured Murray, hooked home with his first touch. It was key for his first-half goal and kept Palace on their toes as the hosts sat back after the interval.
    Crystal Palace ends winless streak at Burnley's expense

    Crystal Palace ends winless streak at Burnley's expense

    Dyche remains optimistic about his side's development, saying: "The key for me is to get back to a performance level that can win games".
  • Rahm breezes to Hero World Challenge title

    Rahm breezes to Hero World Challenge title

    The five-time champion cut a sorry figure at the bottom of the board as he ended the day with a 72 that left him 11 shots back. Halfway co-leaders Stenson and Rahm both carded round of 69 to be alongside Finau at 13-under 203.
    Rescue mission in Japan after 'mishap' involving two Marine aircraft

    Rescue mission in Japan after 'mishap' involving two Marine aircraft

    The Marines said in a statement that Japanese search and rescue aircraft responded and were aiding in the rescue effort. The aircraft - a KC-130 and an F/A-18 Hornet - had launched from Marine Corps Air Station Iwakuni in southern Japan.
    As Gun Violence Grows, US Life Expectancy Drops

    As Gun Violence Grows, US Life Expectancy Drops

    On top of this increase, there has been a consistent decline in the average life expectancy in the US for the past three years. Similarly in 2017, the drug overdose death rate was 21.7 per 100,000 deaths, while in 1999 that number was only 6.1.
  • Dow plunges nearly 800 points

    Dow plunges nearly 800 points

    The Dow Jones plunged nearly 800 points, while the S&P 500 was driven lower by financials, which shed nearly 4.4 per cent. Discount retail chain Dollar General slid 8.2 per cent to $102.54 after the company reported weak quarterly results.

    Watch SpaceX blast off to the ISS live online HERE

    Remarkably, it seems SpaceX may still be able to recover the rocket. "Appears to be undamaged and is transmitting data". A SpaceX Falcon 9 makes a splashdown after having problems approaching its planned landing zone.
    With two injuries how will Chelsea line up against Wolves on Wednesday?

    With two injuries how will Chelsea line up against Wolves on Wednesday?

    But they bounced back with two good wins, a 4-0 victory over PAOK in the Europa League and a 2-0 win over Fulham at the weekend. And full-back Emerson Palmieri is also in line to make his first Premier League appearance of the season.
  • Comedian Kevin Hart to host 2019 Oscars

    Comedian Kevin Hart to host 2019 Oscars

    Hart went on to thank his family and friends and said it was now time to "rise to the occasion". Kevin Hart took to Instagram on Tuesday to announce that he is hosting the 2019 Oscars .
    Sandra Oh, Andy Samberg to host the 2019 Golden Globes next month

    Sandra Oh, Andy Samberg to host the 2019 Golden Globes next month

    Anything Special to Watch Out For This Year?: Yes! The nominees will be revealed live from Los Angeles on Thursday, Dec. 6 at 8:05 a.m.
    Fans clamoring for Redskins to sign Colin Kaepernick after latest injury

    Fans clamoring for Redskins to sign Colin Kaepernick after latest injury

    But on Tuesday, Gruden said McCoy could miss 2-4 weeks - which would even give the 32-year-old a chance at returning this year. Alex Smith broke his fibula and tibia in Week 11 before his backup, McCoy, broke his fibula against the Eagles on Monday.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.