15:57 December 05
Benchmark indices Sensex and Nifty closed lower in topsy-turvy trade on Thursday after the Reserve Bank surprised with its decision to hold key policy rates.
At the closing bell, the 30-share BSE gauge Sensex was lower by 70.70 points or 0.17 per cent at 40,779.59. The index swung between losses and gains after the central bank kept the rates unchanged.
The 50-scrip NSE Nifty settled the day with a loss of 24.80 points or 0.21 per cent at 12,018.40.
15:49 December 05
RBI Governor said "It is very early to speak on a central bank issuing digital currencies. Some discussions are going on. Technology has not fully evolved yet. It is still in very incipient stage of discussions and at RBI we have examined it internally."
"As and when the technology evolves with adequate safeguards, I think it is an area where the Reserve Bank will certainly look at seriously at an appropriate time," he said.
13:18 December 05
Forensic audit report on PMC Bank expected by month-end, says Das.
12:37 December 05
So far good coordination between fiscal and monetary authorities, says governor Das. The governor also said the central bank would, however, like to see greater clarity on the impact on the government's counter-cyclical measures to push growth, stressing that the central bank is "not worried" over the government missing the fiscal deficit target.
On the fiscal deficit overshooting the budgeted targets by October itself at 102 percent, the bureaucrat- turned-central banker explained that usually the fiscal gap goes up in the second and third quarter and comes down in the fourth quarter as revenue mop-up increases and suggested to should wait for the final numbers.
On growth, which has been lagging by a wide margin so far, he said there are some green-shoots which are emerging, but it will be too early to comment on their sustainability.
Das said inflation is seen rising in the near-term, but is likely to moderate below the 4 percent target by the second quarter of FY21.
12:32 December 05
Steep telecom tariff hike can have some impact on core inflation says RBI Governor Das.
12:32 December 05
Das said the weighted average lending rate has gone down by 44 bps on the fresh rupee loans. He also said there are indications of the capex cycle, a sluggishness in which is hurting economic growth, turning up.
12:29 December 05
New type of Prepaid Payment Instruments (PPI) to be introduced which can be used only for purchase of goods and services up to a limit of Rs 10,000.
12:27 December 05
RBI governor said that users may undertake over the counter currency derivative transactions up to USD 10 million, without the need to evidence underlying exposure.
12:27 December 05
International Financial Service Centre Banking Unit will be allowed to accept fixed deposits in foreign currency of tenor less than one year from non-bank entities and consequently remove the current restriction on premature withdrawal of deposits, says RBI governor.
12:27 December 05
With a view to reducing concentration risk in the exposures of primary (urban) co-operative banks (UCBs) and to further strengthen the role of UCBs in promoting financial inclusion, Shaktikanta Das said that it is is proposed to amend certain regulatory guidelines relating to UCBs.
12:26 December 05
Government may initiate some other critical initiatives to revive the growth, says Das.
12:24 December 05
Shaktikanta Das said that RBI will facilitate the setting up of a self-regulatory body (SRB) as a first step towards the development of the secondary market for corporate loans.
12:23 December 05
Reserve Bank of India (RBI) Governor Shaktikanta Das said as regards the external sector, exports contracted in September-October 2019 reflecting the persisting weakness in global trade but non-oil export growth returned to positive territory in October, after a gap of 2 months.
12:21 December 05
Equity benchmark BSE Sensex dropped over 100 points in afternoon session on Thursday, after the the Reserve Bank of India kept the key policy rate unchanged. It was trading 100.56 points, lower at 40,749.73 at 1149 hours. Similar movement was seen on the NSE and the broader NSE Nifty was trading 11.25 points, or 0.09 per cent, down at 12,031.95 at 12:12 pm.
12:19 December 05
RBI Governor Shaktikanta Das said forex reserves jump to a new high of USD 451.7 billion as of December 3.
12:13 December 05
The Indian rupee falls 8 paise to 71.61 against the US dollar in mid-session trade on Thursday after the Reserve Bank surprisingly left key policy rate unchanged at 5.15 per cent.
11:38 December 05
RBI keeps repo rate unchanged at 5.15%
Mumbai:The Reserve Bank of India on Thursday kept the key policy rate unchanged at 5.15 per cent and decided to continue with its accommodative stance to support the economy.
The six-member monetary policy committee under the chairmanship of RBI Governor Shaktikanta Das began their meet on December 3 for the fifth bi-monthly policy statement for 2019-20.
Consequently, the reverse repo rate under the LAF remains unchanged at 4.90 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 5.40 per cent.
The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target.
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.
Real GDP growth for 2019-20 is revised downwards from 6.1 per cent in the October policy to 5.0 per cent –4.9-5.5 per cent in H2 and 5.9-6.3 per cent for H1:2020-21.
"The Monetary Policy Committee recognises that there is monetary policy space for future action. However, given the evolving growth-inflation dynamics, the MPC felt it appropriate to take a pause at this juncture," the RBI said in its fifth bi-monthly monetary policy for this fiscal.
Das said this was a "temporary pause" in the interest rate cutting cycle and the MPC will be better placed to decide on it in February after more data comes in and the government brings out its Budget for 2020-21.
The panel decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target.
All the six members of the MPC voted in favour of a rate pause.
Between February and October 2019, the RBI has reduced repo rate by 135 basis points.
Stating that headline inflation at 4.6 per cent in October was "much higher than expected," the central bank raised upwards its inflation forecast for the second half of the fiscal year to 5.1-4.7 per cent from 3.5-3.7 per cent seen previously.
Inflation in October for the first time in more than a year breached the RBI's 4 per cent medium-term target. This primarily was due to uptick in prices of vegetables such as onion and tomatoes, Das said.
What is Repo Rate?
Repo rate is the rate at which RBI lends to commercial banks for a short period of time. The back to back cuts in the key lending rate would enable banks to give personal, auto and home loans to customers at a reduced rate of interest. Consequently, the equated monthly instalments (EMI) would come down.