Reserve Bank of India signage at its headquarters in Mumbai. (Source: Vijay Sartape/NDTV Profit)
2 years ago
Feb 08, 2024
India's Monetary Policy Committee maintains status quo on the Reserve Bank of India's key lending rate amid the continuing need to bring down inflation further even as economic activity remains resilient.All the 41 economists polled by Bloomberg expect the MPC to hold the Reserve Bank of India's repo rate steady at 6.5% on Thursday.
Deputy Governor Ravishankar clarifies about fungibility in use of CBDC, in response to a question by NDTV Profit's Vishwanath Nair.
"When a family puts some currency notes in a package to be used for groceries. This doesn’t mean that the fungibility is lost. It just means that for that duration the money can’t be used for any other purpose."
Domestic financial system remains resilient, says RBI Governor Shaktikanta Das.
Regulated entities must accord highest importance to good governance, robust risk management, sound compliance culture, protection of customer interest, he says.
"We maintain our view that the RBI MPC will keep the policy rate unchanged at the Feb. 8 policy meeting at 6.50%, sound optimistic on growth, recognise the sharp fiscal consolidation in the interim budget, and reiterate the commitment to the 4% headline inflation target, stated a research note by Goldman Sachs.
While the RBI is likely to keep policy settings unchanged, the tone is likely to be less hawkish, said Rahul Bajoria, chief economist at Barclays.
"We see a window for rate cuts opening in Q1 FY25," he said.
