RBI Monetary Policy key highlights: Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) today raised the policy rate by 50 basis points, to further rein in inflation. The fourth consecutive rate hike in a row comes amid rising fears of global recession, surging inflation, and a slump in Indian rupee and bond markets. The central bank is trying hard to maintain a tight balance between controlling inflation on one hand and support the nascent economic growth recovery on the other hand.
The Reserve Bank of India on Friday hiked the repo rate by 50 bps, taking the key policy rate back to the pre-pandemic level of 5.4 per cent. Today’s hike was the third such in a row, with which the cumulative rate hike since May is now 140 bps. The central bank’s MPC (Monetary Policy Committee) said that it remains focused on “withdrawal of accommodation” to combat the elevated inflationary pressures while also supporting growth.
“These decisions are 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,” Governor Shaktikanta Das said.
Sustained high inflation could de-stabilise inflation expectations and harm growth in the medium term, he added.
Reserve Bank released the 25th issue of the Financial Stability Report (FSR), which reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the financial system..
The Indian rupee has plummeted to fresh all-time lows over the last several days as emerging market assets are battered by a global risk-off, which has triggered a flight to safe-haven assets. Meanwhile, foreign money continues to leave Indian assets even as the trade deficit worsens. The rupee’s fall these days, experts say, is primarily because of high crude oil prices, a strong dollar overseas, and foreign capital outflows.
Yet, the rupee has performed better, compared with several of its Asian peers and the Reserve Bank of India (RBI) is committed and well prepared to contain the volatility in the exchange rate.
In summary, the backdrop of heated inflation, Covid crisis, monetary tightening by key central banks, and supply chain disruptions sparked by the Russia-Ukraine war have slowed down global economic activity, leading to the rupee’s massive drop against the dollar.
EASE 5.0 ‘Common reforms agenda’ of EASENext program has been developed for Public Sector Banks and was launched through video-conferencing by the Minister of Finance and Corporate Affairs, Nirmala Sitharaman in New Delhi on Wednesday.
The Reserve Bank of India (RBI) has raised the repo rate by 50 basis points, an increase for the second time in five weeks at the conclusion of the monetary policy committee’s three-day meeting on June 8. Earlier, the monetary policy committee (MPC) had held an unscheduled meeting in early May and voted unanimously for a 40 basis point repo rate hike in anticipation of a huge increase in April inflation. Consequently, the standing deposit facility (SDF) rate stands adjusted to 4.65 per cent and the marginal standing facility (MSF) rate and the bank rate to 5.15 per cent. The MPC also voted unanimously to remain focused on the withdrawal of accommodation to ensure that inflation remains within range going forward, while supporting growth.
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Friday left unchanged the key policy rate — Repo rate — at 4 per cent and the Reverse repo rate at 3.35 per cent.
However, the RBI introduced the Standing Deposit Facility (SDF) – an additional tool for absorbing liquidity – at an interest rate of 3.75 per cent. The central bank retained its accommodative policy stance but hinted that it will be less accommodative in the wake of elevated inflation levels.
RBI launches UPI for 400 mn feature phone users to widen digital payment reach. (1) UPI123Pay – Option to make Unified Payments Interface (UPI) payments for feature phone users, and (2) DigiSaathi – a 24×7 Helpline to address the queries of digital payment users across products.
We give here the feedback of participants who have appeared for interview in their RRB PO, IBPS PO & SBI PO between November 2021 to March 2022. These feedback will help the freshers who are appearing for interview during current year and for those also who will appear for interview in future. This will give an idea of what type of questions are being asked and where one should focus upon. Please make best use of same for improving your interview preparation.
In the Statement on Developmental and Regulatory Policies announced as a part of the Bi-monthly Monetary Policy Statement for 2021-22 dated February 10, 2022, regarding review of the Credit Default Swaps (CDS) Guidelines. The draft Reserve Bank of India (Credit Derivatives) Directions, 2021 were released for public comments on February 16, 2021. Based on the feedback received from the market participants, the draft Directions were reviewed and have since been finalised. The Master Direction – Reserve Bank of India (Credit Derivatives) Directions, 2022 are enclosed herewith.