RBI Monetary Policy Key Takeaways: Unswayed By Fed, Inflation, Growth And More
The MPC has decided to maintain the repo rate at 6.5% for the eighth consecutive time.
KEY HIGHLIGHTS
CRISIL Expects RBI To Cut Rates Starting October, Lowers Rate Cut Expectations
CRISIL anticipates rate cuts from the RBI starting October, while revising down rate cut expectations.
"We now see the RBI cutting rates starting October and have lowered our expectation to two rate cuts against three foreseen earlier," CRISIL's Chief Economist Dharmakirti Joshi said.
Don't Expect Systemic Impact On Account Of Change In Bulk Deposit Limit, Says RBI Deputy Governor
RBI Deputy Governor DG Swaminathan reassured that the recent revision in bulk deposit thresholds will not have a systemic impact.
Swaminathan highlighted:
Bulk deposit revision is a routine review that we do.
The change in bulk deposit threshold is in line with the current times.
The bulk deposit change aims to enhance asset-liability management for banks.
The cost of deposits of bulk deposits is purely entity dependent.
Don't expect systemic impact on account of change in bulk deposit limit.
Problem Arises From Banks' End, Says Das On UPI Downtime
Governor Das addressed the UPI downtime issue, stating that the problem stems from banks' end rather than UPI or NPCI. He added that the central bank is addressing the issue.
Even If The Fed Eases, We May Not: Das
RBI Governor Das asserted the independence of India's monetary policy, particularly in response to speculations surrounding the actions of the US Federal Reserve.
"Even if US Fed eases, we may not," Governor Das asserted.
"While we do consider the impact of monetary policy in advanced economies on Indian markets, our actions are primarily determined by domestic growth-inflation conditions and the outlook," Das had said in his speech earlier in the day.
RBI Officials Offer Insights On Economic Growth Outlook
RBI Deputy Governor DG Swaminathan highlighted the following points:
FY25 GDP Growth is projected to be lower than FY24, although momentum remains robust.
The lower GDP growth projection for FY25 is attributed to the high base effect from the previous fiscal year.
Swaminathan reassured that there are currently no signs of overheating in the economy.
RBI Governor Shaktikanta Das said:
The growth outlook appears promising, with sustained momentum in economic activity.
Das reiterated the RBI's proactive stance, stating that the central bank remains agile and attentive to incoming data.
If necessary, further measures will be taken to support the economy.
