RBI Monetary Policy LIVE Updates: Shaktikanta Das maintains status quo on interest rates, stance, says banks must communicate loan rate taking into account fees, charges
LIVE Updates on RBI Monetary Policy, Feb. 2024, RBI MPC Meeting, Repo Rate: In line with most analysts’ predictions, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) Governor-led maintained the repo rate—the main interest rate at which it lends short-term cash to commercial banks—unchanged at 6.5% in its February 2024 review.
Keep an eye on this space for the most recent information on the forthcoming RBI monetary policy review (February 2024), including expert opinions, market response, and the central bank’s GDP growth and consumer inflation projections:
RBI MPC Meeting February 2024 LIVE Update: Knight Frank India’s Shishir Baijal argues that a stable interest rate environment will assist the housing industry.
We view the central bank’s decision to keep the policy repo rate paused as reassuring news for the industry because it is consistent with our expectations. Food inflation is still unstable even if the pressures to control inflation have subsided in most consuming areas. According to Shishir Baijal, Chairman and Managing Director, “The RBI is still keeping an eye on inflationary expectations and the liquidity condition, which is currently in deficit. It may continue to further tighten the liquidity condition to rein in inflation.” India’s Knight Frank.A safeguard against prospective inflationary pressure is also provided by the fiscal consolidation plan detailed in the interim budget statement, which aims to gradually reduce the fiscal deficit to 4.5% over the following two years. All of these actions might lower inflation to the RBI’s objective, which would give the central bank confidence to gradually lower interest rates.We think that in the near future, reduced interest rates on home loans will significantly improve the mood of homebuyers and make better affordability possible, which is a very important feature in this particular housing market segment,” Baijal continues.
Live Update: February 2024 RBI MPC MeetingAccording to RBI Governor Shaktikanta Das, the domestic financial system is robust due to the robust balance sheets of banks and other financial institutions.
RBI Governor Shaktikanta Das notes that although the banking system’s financial metrics are improving, so are NBFCs’.
“Good governance, robust risk management, sound compliance culture and protection of customers’ interest are of paramount importance for the safety and stability of the financial system and individual institutions,” states the governor of the RBI.
He continues, “The Reserve Bank places a high priority on these aspects.” “We expect all regulated entities to accord the highest priority to these functions.”
