Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul><li>The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword>’s <keyword id="20104157" type="General" weightage="20" keywordseo="monetary-policy" source="keywords">monetary policy</keyword> meeting is set to begin today.</li><li>The central bank will announce the outcome of the <keyword id="22684891" type="General" weightage="20" keywordseo="MPC-meeting" source="keywords">MPC meeting</keyword> on October 9.</li><li><keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword> has kept the <keyword id="20094323" type="General" weightage="20" keywordseo="repo-rate" source="keywords">repo rate</keyword> unchanged for the last nine consecutive meetings.</li></ul>The Reserve Bank of India (RBI) is set to begin its three-day monetary policy meeting on Monday and will run from October 7 to October 9. All eyes are on the outcome, as the central bank has kept the repo rate unchanged for the last nine consecutive meetings. The repo rate, currently at 6.50%, has remained steady since the RBI adopted a cautious stance to balance inflation control and economic growth. The Monetary Policy Committee (MPC), headed by RBI Governor <keyword id="19913110" type="General" weightage="20" keywordseo="Shaktikanta-Das" source="keywords">Shaktikanta Das</keyword>, is expected to weigh key factors like inflationary trends, global economic uncertainties, and domestic growth prospects. Inflation continues to be a challenge, particularly in food and fuel prices, which saw a surge earlier this year. As per the data from the Ministry of Statistics &amp; Programme Implementation, though the All India Consumer Price inflation in August was 3.65%, which is under the RBI target band the food inflation stands at 5.65% and it remains above the RBI's medium-term target of 4%. Despite these inflationary pressures, the RBI has opted for a status quo on the repo rate, primarily to support economic recovery post-pandemic. However, there are rising concerns that external factors, like the rising global crude oil prices and tensions in West Asia, may compel the RBI to reconsider its current stance. Earlier this month the central government appointed three new members to the monetary policy committee. The MPC comprises three members from the RBI and three external members appointed by the Central Government. The newly reconstituted committee consists of the Governor of the Reserve Bank of India as the Chairperson, ex officio; the Deputy Governor of the Reserve Bank of India, in charge of monetary policy--Member, ex officio, and one officer of the Reserve Bank of India, nominated by the Central Board -- Member, ex officio. The new external members included in the MPC are Professor Ram Singh, Director, Delhi School of Economics, University of Delhi, Saugata Bhattacharya, economist; and Dr. Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development. Market participants and analysts are closely monitoring this meeting for any forward guidance on future rate actions. Many believe the central bank will continue its wait-and-watch approach, but a surprise rate hike cannot be entirely ruled out. On September 18, the <keyword id="19901377" type="General" weightage="20" keywordseo="US-Federal-Reserve" source="keywords">US Federal Reserve</keyword> announced a steep 50 basis points interest cut in its review meeting. US Fed announced the rate cuts after holding interest rates steady for eight straight meetings. The outcome of the MPC meeting will be announced on October 9 and will set the tone for future monetary policies amid the changing global economic landscape. The Reserve Bank of India (RBI) will commence its three-day monetary policy meeting on Monday, October 7th, and continue until October 9th. The result of this meeting is eagerly anticipated, as the central bank has maintained a steady repo rate for the past nine consecutive meetings. The repo rate has remained at 6.50% since the RBI adopted a cautious approach to balance inflation control and economic growth. The Monetary Policy Committee (MPC), led by RBI Governor Shaktikanta Das, will consider various factors, including inflationary trends, global economic uncertainties, and domestic growth prospects. Inflation remains a challenge, particularly in food and fuel prices, which surged earlier this year. According to data from the Ministry of Statistics &amp; Programme Implementation, All India Consumer Price inflation in August was 3.65%, within the RBI's target band, however, food inflation stands at 5.65%, exceeding the RBI's medium-term target of 4%. Despite inflationary pressures, the RBI has opted to maintain the repo rate to support economic recovery post-pandemic. Nonetheless, rising concerns about external factors, such as increasing global crude oil prices due to tensions in West Asia, may prompt the RBI to reassess its current stance. Earlier this month, the central government appointed three new members to the monetary policy committee. The MPC consists of three members from the RBI and three external members appointed by the Central Government. It is worth noting that on September 18, the US Federal Reserve announced a substantial 50 basis points interest rate cut in its review meeting, reversing its previous stance of holding rates steady for eight consecutive meetings. With inputs from ANI. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/september-auto-sales-automakers-report-a-decline-mahindra-and-mahindra-overtakes-tata-motors/articleshow/113925972.cms">September Auto sales – Automakers report a decline, Mahindra and Mahindra overtakes Tata Motors</a> <a href="https://www.businessinsider.in/business/auto/news/ola-electric-continues-to-lose-market-share-as-bajaj-auto-and-tvs-motor-gain/articleshow/113900252.cms">Ola Electric continues to lose market share as Bajaj Auto and TVS Motor gain</a> <a href="https://www.businessinsider.in/business/telecom/news/airtel-is-using-ai-powered-technology-to-block-spam-calls-and-messages/articleshow/113691942.cms">Airtel is using AI-powered technology to block spam calls and messages</a>

RBI's monetary policy committee meeting begins today, announcement on October 9

Days after Trump won his way to the White House, becoming the 47th President of the United States, the US Federal Reserve slashed the interest rates by 25 basis points, bringing them within the range of 4.5-4.75%. This is the second time this year that the Fed has lowered the interest rates, after cutting them down by 50 basis points in September 2024. u Fed chair Jerome Powell noted that monetary policy remains tight as inflation remains elevated at 2.4% as of September 2024, slightly above the 2% mark set by the commission. However, the Fed remained optimistic about the current state of the economy. "The Committee seeks to achieve maximum employment and inflation at 2% over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate," the FOMC (Federal Open Market Committee) noted in its press release. The rate cut was along widely anticipated lines, although experts were wary of the Fed's way ahead, given that Donald Trump has been elected as the US President. In the past, he has, on multiple occasions, expressed his desire to yield greater influence on the Fed, apart from publicly criticizing Powell. However, Powell continued to stand his ground, noting that Trump cannot legally sack him. He believed in keeping the Fed independent, at least until his tenure as governor ends in 2028. He highlighted that even if he is explicitly asked by Trump to quit, he won't do so. <h2>Trump's regime to inch up inflation?</h2> Trump's electoral promises, if translated into policies, could spell disaster for the Fed's effort to curtail inflation. Reportedly, Trump has promised to levy aggressive tariffs against US trading partners, particularly China, and even extend his 2017 tax cuts. This could mean higher levels of the federal deficit, which would push up prices, wages, and hence, inflation, even as the Fed tries to consistently bring it under control. Apurva Sheth, Head of Market Perspectives and Research, SAMCO Securities, notes that it wasn't a surprise when the US Fed cut interest rates by 25 basis points (bps) to 4.75%. The Fed had given enough clues, and the market too had anticipated these rate cuts. "However, what was surprising was how the <keyword id="23863852" type="General" weightage="20" keywordseo="US-10-year-bond-yields" source="keywords">US 10-year bond yields</keyword> moved over the last one and a half months, which have been rising relentlessly from 3.6% to almost 4.5% despite the 50 bps cut in the last Fed meeting. It seems that the market is anticipating slower rate cuts going ahead, and maybe there are even chances of inflation rising. The bond yields have cooled off and slipped below the 4.335% mark. This should be bullish for emerging markets like India," he added.

US Fed cuts interest rates by 25 bps, Powell notes Trump's victory to have no impact on policy decisions

Around the world, all eyes will be on the US <keyword id="19904332" type="General" weightage="100" keywordseo="Federal-Reserve" source="keywords">Federal Reserve</keyword> meeting, which starts today, and will announce changes in <keyword id="19950650" type="General" weightage="20" keywordseo="interest-rates" source="keywords">interest rates</keyword>, if any, after concluding its two-day meet tomorrow i.e. on 18th September. Most experts are anticipating a 25 basis point <keyword id="19920203" type="General" weightage="20" keywordseo="rate-cut" source="keywords">rate cut</keyword>, while some suggest a sharper, 50 basis point rate cut might also be possible. According to the <keyword id="19950992" type="General" weightage="20" keywordseo="CME-FedWatch" source="keywords" meta.keywordsubtype="org" meta.entityname="CME FedWatch" meta.hostid="261" meta.entityid="CME FedWatch">CME FedWatch</keyword> tool, there is an 85% probability of a 25 basis point rate cut in September. However, the firmer-than-expected core inflation reading will perhaps make it more difficult for Fed chairman <keyword id="20058769" type="General" weightage="20" keywordseo="Jerome-Powell" source="keywords">Jerome Powell</keyword> to justify a 50 basis point cut in September. However, as Gaurav Garg from Lemonn, a trading and investing platform explains, “a bold 50-basis-points (bps) rate cut could ignite optimism leading to weaker dollar and further inflows into emerging markets like India, while a cautious 25 bps move may trigger disappointment, with markets currently pricing increasing odds for a bigger cut”. Historically, a rate cut fuels optimism in the domestic markets, as it reduces corporate borrowing costs and increases consumer spending power. Lower interest rates also implies cheaper borrowing, which is advantageous for homeowners looking for lower mortgage rates. “The reduction in borrowing costs may promote demand in the home market as well as encourage refinancing activity”, says Swapnil Aggarwal, Director, VSRK Capital “However, the market’s reaction will depend on the motivations behind the Fed’s decision. If the rate cut is in response to concerns about a slowing economy or rising unemployment, the positive market effect could be muted. But if the Fed is cutting rates due to low inflation and a stable growth outlook, markets may rally in response to the more favorable borrowing environment”, Agarwal continued. After this, the Fed would convene between November 5-7. Two key employment reports, which are due before the Fed announces its November outcome, are likely to impact this. However, as experts see it, there is a slight leaning towards a 50 basis point rate cut in November, with the probability currently at 52.4%, as per CME FedWatch For December, the likelihood of another 50 basis point rate cut increases significantly, with the probability standing at 80.4%. “Given the higher probability, if November sees only a 25 basis point cut, it is likely that a 50 basis point cut will follow in December”, says Alex Volkov, a market analyst at VT Markets.

Fed meeting starts today, rate cut on the cards. Here’s what experts are saying

On Wednesday, the US <keyword id="19904332" type="General" weightage="100" keywordseo="Federal-Reserve" source="keywords">Federal Reserve</keyword> slashed the <keyword id="19950650" type="General" weightage="20" keywordseo="interest-rates" source="keywords">interest rates</keyword> by a mammoth 50-basis points. In response, markets across the world, including the Nifty and Sensex, scaled record highs. While Nifty was up by around 280 points, breaching the 25,000 mark, Sensex was up by almost 1,000 points. Globally, S&amp;P was up by 1.70%, while Hang Seng inched up by 1.06% But did you know that along with the Fed, many other <keyword id="19946830" type="General" weightage="20" keywordseo="central-banks" source="keywords">central banks</keyword> across the world also made changes to their interest rates this week? This includes <keyword id="19935367" type="General" weightage="20" keywordseo="Brazil" source="keywords">Brazil</keyword>, Indonesia, Japan, <keyword id="19953502" type="General" weightage="20" keywordseo="Turkey" source="keywords">Turkey</keyword> and England. We take a closer look: <h2>Brazil</h2> Latin America's largest economy, which has set a 3% inflation target for itself, is currently witnessing 4.25% inflation. The apex bank unanimously decided to raise its Selic rate, or benchmark interest by 25 basis points for the first time in 2 years, taking it to 10.75%. The decision making committee, also known as the Copom, also signalled towards three more rate hikes of 25 bps each by the end of this year, closing the year with the Selic at 11.25%. Bolstered by a solid labour market, with unemployment in the country dipping to 6.9% in May, the lowest since 2014, Brazil is also witnessing a surge in employment growth, which grew 2.9% on a YoY basis, and a rise in average monthly earnings, which jumped up 5.6% from the year ago period. Such strong labour markets, combined with higher consumer spending, stokes fears of inflation. This is why such tightening measures i.e. raising the borrowing costs become necessary. <h2>Japan</h2> The country held steady it's short term interest rate at 0.25%, treading largely along expected lines. You'd think the only way up for Japanese interest rates from hereon is up, but the country has, for decades, also held a negative interest rate, something it did away with only in March this year. This was done to fire up consumption and increase borrowing, which seems to be yielding fruits now. Governor Kazuo Ueda also hinted at raising interest rates, if spending and consumption stay in line with the central bank’s target of 2% inflation. <h2> Indonesia</h2> The country announced a quarter basis point (25 bps) rate cut for the first time in 3 years, a surprise move given that most experts anticipated the country to hold steady on to its interest rate of 6.25%. Bringing down the interest rate to 6%, governor Perry Warjiyo expects this to boost the Rupiah, the country's currency and also accelerate foreign inflows into the economy. Given that the country's inflation projections for 2024 and 2025 remain within the targeted 2.5%, experts anticipate more rate cuts in the remaining part of the year. <h2> Turkey</h2> The country's central bank kept the interest rate steady at 50% for the 6th consecutive month in September. Turkey had last hiked it's interest rate by a massive 500 basis point in March this year, in a bid to tame inflationary pressures, which are now down from 75% in May to 52% last month. The central bank estimates that inflation will be down to 42% by end of 2024, dipping further lower to 17.5% by 2025 end. Analysts expect the country to make its first rate cut in November this year, as inflation in the country stabilises to some extent. <h2> England</h2> The good old British refrained from tinkering with their interest rates, leaving it unchanged at 5%, even as their American counterparts slashing interest rates and keeping the interest rate target range between 4.75% and 5%. This comes amidst the rapid rising pace of service prices, which make up for 80% of the British economy, and wage rise. The decision was largely expected, given that inflation, which holds steady at 2.2% as of August, remains above the apex bank’s target. Sevice inflation in the country jumped to 5.6% in August, which is keeping Bank of England on alert. Although, it is expected to revise rates in its next meeting in November.

Not just Fed, but central banks of these countries also tinkered with rate cuts this week

<ul class="summary-list"><li><keyword id="19979912" type="General" weightage="100" keywordseo="mortgage-rates" source="keywords">Mortgage rates</keyword> are falling but remain high compared to the rates of the past few years.</li><li>Assumable mortgages can help <keyword id="19907145" type="General" weightage="20" keywordseo="homebuyers" source="keywords">homebuyers</keyword> get lower rates and reduce their monthly payments.</li></ul>Over the past few years, <a target="_blank" href="https://www.businessinsider.com/personal-finance/mortgages/average-mortgage-interest-rate">US mortgage rates</a> have fluctuated wildly, leaving both homebuyers and sellers scrambling. In 2021, rates fell to as low as 2.1% as the <a target="_blank" href="https://www.businessinsider.com/how-fed-rate-cut-could-impact-mortgage-rates-homebuyers-2024-9">Federal Reserve</a> acted to keep the economy ticking during the COVID-19 pandemic. But then inflation spiked. To cool inflation, the Fed implemented a series of rate hikes, pushing mortgage rates to a peak of 7.79% in October 2023, according to data tracked by the <keyword id="19904332" type="General" weightage="20" keywordseo="Federal-Reserve" source="keywords" meta.keywordsubtype="org" meta.entityname="Federal Reserve" meta.hostid="261" meta.entityid="Federal Reserve">Federal Reserve</keyword> Bank of St. Louis. But over the last few years, some homebuyers have used a workaround to get lower rates anyway: a lesser-known loan option called an <keyword id="23243178" type="General" weightage="20" keywordseo="assumable-mortgage" source="keywords">assumable mortgage</keyword>. Assumable mortgages let qualifying buyers take over a seller's existing loan, including its interest rate, principal balance, and other terms. This can lead to significantly lower <keyword id="19950650" type="General" weightage="20" keywordseo="interest-rates" source="keywords">interest rates</keyword>, making monthly mortgage payments more affordable and saving thousands over the life of the loan. It's important to note that not all loans are eligible for assumption, but ones backed by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) are. 2024, however, has brought some relief from high rates. In January, <a target="_blank" href="https://www.businessinsider.com/fed-cut-lower-mortgage-rates-should-you-refinance-2024-9">rates</a> hit about 6.7% and have been slowly decreasing since. According to Freddie Mac, the 30-year fixed-rate mortgage dropped to 6.2% as of mid-September, its lowest level since February 2023. The Federal Open Market Committee, which oversees US monetary policy, is expected to <a target="_blank" class="" href="https://www.businessinsider.com/interest-rate-cuts-decision-this-week-federal-reserve-powell-inflation-2024-9">cut interest rates</a> at its <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/banking/when-is-the-next-fed-meeting">meeting</a> this week. This could lead to further declines in mortgage rates in the coming months. Still, the 2%-ish rates of 2021 aren't likely to return as the Fed remains wary of inflation. So while additional rate declines may ease monthly mortgage payments for some, they won't necessarily make homebuying significantly more affordable for most Americans. For that reason, assumable mortgages still might be the best option for some people to get the lowest rates. Here are the stories of three homebuying couples who secured mortgage rates below 3% since March 2023 using assumable mortgages. They described how they redirected the funds they would have spent on higher monthly mortgage payments into healthcare, renovations, or retirement. <h2>One couple got a 2.6% rate and became the youngest homeowners in their families</h2>In 2022, <a target="_blank" href="https://www.businessinsider.com/first-time-buyers-got-lowest-best-interest-rate-assumable-mortgage-2024-3">Grace Lucchese</a> had just graduated from college. Her partner, Mickey Ricard, had finished his military service two years prior. The Gen Z couple had moved into an apartment in Lucchese's hometown of Sudbury, Massachusetts — a town about 40 minutes outside Boston — and found themselves spending much of their incomes on rent. "We were paying ridiculous <a target="_blank" href="https://www.businessinsider.com/rental-market-housing-affordability-real-estate-apartments-2024-1">prices for rent</a>, and our money was going nowhere," Lucchese told Business Insider. "We also have a dog with special needs, so we wanted to find a home with a backyard." <div type="image" title="Grace Lucchese, Mickey Ricard, and their dog at home." height="1701" width="2268" msid="113465770" hostid="261"></div>For the first-time homebuyers, finding an affordable, well-maintained home in their area was challenging. "During our homebuying search, we looked all around Boston," Lucchese said. "We could not find a home that was move-in ready and under $650,000. We put offers on probably seven different homes and got into bidding wars on two." After months of searching and nearly giving up, Lucchese and Ricard finally found their perfect home: a 1,600-square-foot, two-story Colonial built in 1885 with three bedrooms and one bathroom. The home also came with an assumable mortgage. "Our home was originally listed for $429,000," Lucchese said. "When we were <a target="_blank" href="https://www.businessinsider.com/real-estate-investing-how-to-negotiate-best-price-down-2023-4">negotiating with the seller</a> and trying to talk him down on the price, they brought up the assumable loan — I had no clue what that type of mortgage was." After learning about assumable mortgages and realizing they could take over the homeowner's 2.6% rate, they jumped at the opportunity. <div type="image" title="Grace Lucchese and Mickey Ricard's Massachusetts home." height="3024" width="4032" msid="113465773" hostid="261"></div>In January, they made a $13,000 down payment and bought the home for $422,500. With homeowners' insurance included, their monthly payments are around $2,100 — about half of what they would likely pay if they had gotten a traditional mortgage earlier this year. Their mortgage term is 26 years. The couple, now the youngest homeowners in both of their families, are using their monthly savings to renovate their home and help cover their dog's veterinary expenses. "Now that our assumable mortgage is saving us about $2,000 each month, it makes the stress a little less because we have the option of having more money available," Lucchese said. <h2>Retirees who got a 2.75% rate say their lives are easier</h2>In June, <a target="_blank" href="https://www.businessinsider.com/homebuyer-got-low-mortgage-interest-rate-assumable-mortgage-save-retirement-2024-7">Brian Sankey</a>, a retired military police officer, purchased a $400,000 home in Elizabethtown, Kentucky — a small town south of Fort Knox — with an assumable Veterans Affairs, or VA, mortgage. The loan has a 2.75% interest rate and 26 years remaining on its 30-year fixed-rate term. Sankey said it was "a win-win" situation for him and the seller. "The benefit of a loan assumption for the seller was that it allowed them to sell their home at a higher price," Sankey told BI. "For my wife and me, it allowed us to get a lower interest rate." <div type="image" title="Brian Sankey on the beach." height="1200" width="1600" msid="113465776" hostid="261"></div>Sankey said he learned about the assumption feature of Veterans Affairs mortgages years ago but had forgotten about it over time. It wasn't until he came across the four-bedroom, four-bathroom home in Elizabethtown that his memory was jolted. The home's proximity to an Army base led Sankey to suspect that the sellers might be connected to the military and have taken out a VA loan, making an assumable mortgage possible. He was right. However, getting the seller on board wasn't as easy as Sankey had hoped. "They weren't inclined to do it at first because they felt the assumption process would take too long, and they were looking for a quick sale," he said. "But after about 30 days, they realized that cash buyers wouldn't be throwing money at them and agreed to proceed with the assumption." According to Sankey, the assumption process took just about six weeks from the time he and his wife first viewed the home to closing the loan. "I'm happy I remembered it because it made our home purchase more affordable," he said. "Despite the current market conditions and higher interest rates, my wife and I were able to purchase a larger home with lower monthly payments." A smaller mortgage is allowing Sankey and his wife to <a target="_blank" href="https://www.businessinsider.com/personal-finance/how-much-do-i-need-to-retire">retire more comfortably</a>. "I can now use the money I would have spent on high-interest payments to cover living expenses," Sankey said. "We should also have more discretionary income." <h2>A couple is able to pay down medical debts after buying a house in Oregon</h2>In 2022, <a target="_blank" href="https://www.businessinsider.com/couple-got-low-mortgage-when-everyone-getting-high-interest-rate-2024-3">Amy Yzaguirre</a> was diagnosed with cancer. At the time, she and her son were living in Idaho while her husband looked for a job in Oregon. They had planned to reunite in Oregon after he found one and their Idaho home sold. However, following her diagnosis, the couple decided it was best to be together before the Idaho home was sold. Faced with the financial burden of paying the Idaho mortgage and Oregon rent at the same time, they moved into an RV on her parents' property in Tigard, a suburb about 20 minutes outside Portland. "It was pretty rough, but we made it work," Yzaguirre told BI. They lived rent-free in the RV for months while waiting for their Idaho home to sell and Yzaguirre to recover. Then, they began searching for a home to buy in Tigard. <div type="image" title="Amy Yzaguirre and her husband pose in front of the RV they purchased." height="542" width="720" msid="113465772" hostid="261"></div>It wasn't the experience they had hoped for. "It's funny how an area can be a nice, family-friendly, affordable place to live and then suddenly become overpopulated and much more expensive," she said. They eventually toured a townhome in nearby Sherwood listed for $416,000. The seller's flyer noted that a buyer could take over their 2.5% mortgage rate. "I did the math," Yzaguirre said. "The seller was locked in at 2.5%, so if we qualified to assume the loan, our mortgage would be a little over $2,100 a month versus the over $3,000 we would be paying with a traditional mortgage at current market rates. It would save us over $40,000 in the long run." <div type="image" title="Amy Yzaguirre, her husband, and son." height="3024" width="4032" msid="113465778" hostid="261"></div>In March 2023, the couple purchased the townhome for $418,900. They made a down payment of $48,000 and assumed a 30-year fixed-rate FHA loan with an interest rate of 2.5%. They have 28 years left on their mortgage. The money they are saving each month is helping them pay down Yzaguirre's bills. "Even though I was fortunate to have good insurance during chemotherapy and have excellent insurance through my current job, I still had quite a few medical bills to pay off," she said. "With the extra money we have saved on our mortgage payment, I've been able to pay them down." The family also used some of their extra funds to pay off other debts and purchase a Toyota Tacoma pickup truck with cash, covering the full amount upfront Correction: September 19, 2024 — An earlier version of this story misspelled Mickey Ricard’s last name.

3 couples who recently got mortgage interest rates under 3% share how they did it

New Delhi [<keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword>], February 5 (ANI): The Monetary Policy Committee of the Reserve Bank of India (<keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword>) in its February review meeting is expected to again put a pause on the repo rate, according to <keyword id="20112035" type="General" weightage="20" keywordseo="sbi-research" source="keywords">SBI Research</keyword>. In its December meeting, the RBI unanimously decided to keep the policy repo rate unchanged at 6.5 per cent, thus maintaining the status quo for the fifth straight time. The repo rate is the rate of interest at which RBI lends to other banks. "We expect the RBI to continue pause stance in upcoming policy. Strong US non-farm payroll data and wages seem to have pushed back on market expectations for a quick pivot to rate cuts," said the research report Ecowrap as a prelude before the three-day RBI meeting that starts Tuesday. The reports said that the first repo rate rate cut could be on the table from June 2024. "Aug'24 looks the best bet now...," it said. The RBI typically conducts six bimonthly meetings in a financial year, where it deliberates interest rates, money supply, inflation outlook, and various macroeconomic indicators. A relative decline in inflation, barring the latest spike, and its potential for further decline may have prompted the central bank to put the brake on the key interest rate. Inflation has been a concern for many countries, including advanced economies, but India has largely managed to steer its inflation trajectory quite well. Barring the latest pauses, the RBI raised the repo rate by 250 basis points cumulatively to 6.5 per cent since May 2022 in the fight against inflation. Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline. The retail inflation in India though is in RBI's 2-6 per cent comfort level but is above the ideal 4 per cent scenario. In December, it was 5.69 per cent. The <keyword id="19901377" type="General" weightage="20" keywordseo="us-federal-reserve" source="keywords">US Federal Reserve</keyword> in its January meeting voted to leave the key interest rate unchanged at 5.25-5.50 per cent, keeping the policy rate unchanged for the fourth straight time on a trot. The US monetary policy committee in its statement said that the recent indicators suggested that economic activity has been expanding at a solid pace. <keyword id="19951097" type="General" weightage="20" keywordseo="us-fed" source="keywords">US Fed</keyword> had raised interest rates from near zero to now 5.25-5.50 per cent in the fight against inflation, post-COVID. US inflation in December was 3.4 per cent. US Federal Reserve's commitment has been to bring down consumer inflation to its target of 2 per cent. (ANI)

Expect RBI to again pause repo rate in February policy meeting: SBI Research

<ul class="summary-list"><li>Last week, Trump was said to be deciding between two leading candidates for Treasury Secretary.</li><li>Reports say Trump has been having second thoughts and is expanding his search to four major prospects.</li></ul>Two weeks after securing his return to the White House, president-elect Donald Trump has swiftly been forming his Cabinet for 2025.Trump already announced six of the people he wants to lead the <a target="_blank" class="" href="https://www.businessinsider.com/donald-trump-white-house-staff-cabinet-picks-list-2024-11#marco-rubio-4">15 executive departments</a>, including Robert F. Kennedy Jr. for the Department of Health and Human Services and Florida Sen. Marco Rubio for the State Department.He appears to be taking a slower pace as he chooses his nominated successor to Janet Yellen, the current Secretary of the Treasury.The new Treasury Secretary will likely have two immediate tasks: Helping the US avoid default when the national debt ceiling expires in January 2025 and <a target="_blank" class="" href="https://www.businessinsider.com/tax-cut-tariff-plan-outlook-presidential-election-scenarios-harris-trump-2024-10">extending the 2017 Trump tax cut</a>, which is worth trillions and is mostly set to expire next year.The president-elect was initially said to be considering just two candidates, but <a target="_blank" class="" href="https://www.wsj.com/politics/elections/trump-broadens-hunt-for-top-treasury-job-after-jostling-became-messy-e20eb6b6">The Wall Street Journal</a> and <a target="_blank" class="" href="https://www.nytimes.com/2024/11/17/us/politics/trump-treasury-candidates.html">New York Times </a>reported that he's been having second thoughts and expanded the list to four prospects.With Trump seemingly still unsure over his choice, it's also possible that another candidate may emerge.Here are the top picks Trump is reportedly now considering for Secretary of the Treasury. A press contact for Trump's transition team did not respond to a request for comment from BI.<h2 id="ac3f4426-a376-4840-ad0c-600691195aaa">Kevin Warsh</h2><div type="image" title="Kevin Warsh is dressed formally and sits as speaks at a panel with three other people." height="2558" width="3837" msid="115408301" hostid="261" sizebytes="1354142"></div>Warsh, 54, is a former Morgan Stanley banker and one of the newer contenders.He was an economic advisor to President George W. Bush from 2002 to 2006 and a governor of the Federal Reserve Board from 2006 to 2011. During the latter period, Warsh was a central figure in shaping the nation's response to the 2007-2008 financial crisis, working to rescue major ailing banks.More recently, he's been working on Trump's transition team, helping with economic policy and personnel, according to The Journal.Warsh appears to have been in the president-elect's good graces for several years. <a target="_blank" class="" href="https://www.axios.com/2019/02/03/trump-compliments-powerful-men-handsome">Axios reported</a> that Trump praised Warsh as a "really handsome guy" when the two met in 2017 at the White House.Trump had been <a target="_blank" class="" href="https://www.cnbc.com/2017/10/03/kevin-warsh-would-take-a-hammer-to-the-fed-but-he-wouldnt-break-it.html">floating Warsh</a> that year as a frontrunner for Fed chair. He eventually picked Jerome Powell for the role.Warsh is often seen as a financial hawk, <a target="_blank" class="" href="https://www.cnbc.com/video/2024/10/24/former-fed-governor-kevin-warsh-the-fed-doesnt-seem-to-have-a-serious-theory-of-inflation.html">saying in October</a> that he believed the Fed "doesn't seem to have a serious theory of inflation" and <a target="_blank" class="" href="https://www.wsj.com/articles/interest-rates-are-a-sideshow-in-the-fed-drama-economy-monetary-policy-central-bank-53bb6d9e">writing in July</a> that it moved too slowly to curb surging prices.In his July commentary, he blamed inflation on "irresponsible government spending and excessive money printing." Warsh has also been critical of America's burgeoning debt.<h2 id="73ed19fc-c4d6-4b1c-af49-0c08335e71cb">Marc Rowan</h2><div type="image" title="Marc Rowan speaks at a financial leaders' summit in Hong Kong." height="2100" width="3150" msid="115408297" hostid="261" sizebytes="210070"></div>Rowan, 62, is a billionaire investor who leads Apollo Global Management, which he cofounded in the 1990s. It now has nearly $700 billion in assets under management. Apollo recently announced that it plans to double its assets under management to $1.5 trillion by 2029.The Journal and the Times reported that Rowan, like Warsh, is one of Trump's new candidates.The Journal, citing people familiar with the matter, reported that while the billionaire's aides are in touch with Trump, Rowan isn't actively trying to secure the Treasury Secretary role and hasn't spoken to Trump personally about such a position.But the Times also wrote that Trump has been telling his staff that he's impressed with Rowan, who Bloomberg estimates to be <a target="_blank" class="" href="https://www.bloomberg.com/billionaires/profiles/marc-j-rowan/">worth $10.9 billion.</a> Rowan has said that US economic concerns must be fixed by what he called <a target="_blank" class="" href="https://finance.yahoo.com/news/apollo-ceo-marc-rowan-elon-musk-represents-wholesale-change-and-the-us-needs-it-155238301.html">"wholesale change,"</a> which he said Trump and his new administration would bring.That's broadly in line with how Trump has framed his Cabinet picks, as key movers who will upset the status quo and push fresh reform.Rowan has kept a relatively low profile on his views about government policy, though he recently voiced <a target="_blank" class="" href="https://www.bloomberg.com/news/articles/2024-10-02/apollo-ceo-rowan-warns-that-aggressive-rate-cuts-could-backfire">concerns</a> that the Fed could overstimulate the economy with interest rate cuts.<h2 id="e6cea6ab-a68b-4816-b297-f3f995f40039">Howard Lutnick</h2><div type="image" title="A man stands at a Trump/Vance podium" height="2769" width="4300" msid="115408282" hostid="261" sizebytes="238422"></div>Lutnick, 63, is the CEO of Cantor Fitzgerald, a Wall Street financial services firm.Lutnick has been serving as Trump's transition cochair with Linda McMahon, of WWE royalty. He's been a friend of the president-elect for decades, repeatedly holding fundraisers for Trump.In August, Lutnick hosted an <a target="_blank" class="" href="https://www.bloomberg.com/news/articles/2024-08-09/with-lutnick-s-help-trump-raises-15-million-at-hamptons-event">event at his home</a> in the Hamptons that raised $15 million for the Trump-Vance campaign.Lutnick has aligned himself closely with Trump's rhetoric. In late October, he expressed a vision for the US economy, describing America in the year 1900 to a crowd at Madison Square Garden, saying it was a time when the "economy was rocking.""We had no income tax, and all we had was tariffs," <a target="_blank" class="" href="https://www.youtube.com/watch?v=x1b4UZn1GAk&amp;ab_channel=HowardW.Lutnick">he said to a cheering stadium.</a> Lutnick has also said that under Trump, corporate taxes would be raised for US giants like Apple and Tesla. He said that Elon Musk, a Trump ally, welcomed such a move if it applied to all big players. <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-trump-lutnick-treasury-secretary-bessent-2024-11">Musk has endorsed Lutnick</a> for Treasury Secretary.Lutnick is also known for steering Cantor Fitzgerald after the 9/11 attack, which killed 658 of its 960 employees at the World Trade Center.<h2 id="4b1b9607-5cdd-4853-b1e5-347ec1d4ffa3">Scott Bessent</h2><div type="image" title="A man in a red vest and blue sweater goes for a walk" height="2931" width="4396" msid="115408293" hostid="261" sizebytes="791788"></div>Bessent, 62, was one of the original frontrunners for Trump's Treasury Secretary.His involvement emerged early last week when <a target="_blank" class="" href="https://www.reuters.com/world/us/bessent-paulson-lead-us-treasury-secretary-under-trump-sources-say-2024-11-08/">Reuters reported</a> that the founder of macro investment firm Key Square Capital Management had been meeting with Trump at the Mar-a-Lago resort.Bessent worked for the liberal philanthropist George Soros from 1991 to 2015, making a name for himself by betting big against the British pound, which collapsed in 1992, and then against the Japanese yen as it weakened in 2013.He left Soros' firm in 2015 to start Key Square, and <a target="_blank" class="" href="https://www.wsj.com/politics/elections/the-ex-soros-executive-who-is-trumps-new-obsession-4be2d493">The Journal</a> reported that he hasn't spoken to the billionaire in years.Bessent has been vocal in his support for Trump, telling <a target="_blank" class="" href="https://www.breitbart.com/politics/2024/08/18/exclusive-scott-bessent-kamala-harris-economic-illiterate-will-crash-economy/">Breitbart</a> in August that Vice President Kamala Harris would have crashed the economy if she was president.He wrote <a target="_blank" class="" href="https://www.wsj.com/opinion/markets-hail-trumps-economics-he-will-repair-biden-damage-pro-growth-investment-boost-f3954dbe?">an opinion column</a> just after the election, praising Trump for a stock market rally after his win and knocking <a target="_blank" class="" href="https://www.cnn.com/2024/10/23/politics/nobel-prize-economists-harris-economic-plan/index.html">23 Nobel Prize-winning economists</a> for predicting that the president-elect's agenda would be "counterproductive."The investor laid out his ideas for the economy in his written piece, calling for the Trump administration to reduce government borrowing and to reform President Joe Biden's policies for investment in a "quixotic energy transition."Like Lutnick, he's <a target="_blank" class="" href="https://www.foxnews.com/opinion/scott-bessent-talk-tariffs-its-time-revitalize-alexander-hamiltons-favorite-tool">advocated for an economy</a> that's more reliant on tariffs and weaned off income tax, saying the move would restore America's position on the world stage and help curb China's growth.However, The Journal reported that some conservatives in Trump's circle were concerned about Bessent's past experience working for Soros, who has attracted the ire of the MAGA base for his support of left-leaning causes.

Meet the top 4 candidates Trump is considering for Secretary of the Treasury

The rupee declined 10 paise to close at 83.48 (provisional) against the <keyword id="19949640" type="General" weightage="20" keywordseo="US-dollar" source="keywords">US dollar</keyword> on Monday, as investors remained cautious ahead of the US <keyword id="19904332" type="General" weightage="20" keywordseo="Federal-Reserve" source="keywords">Federal Reserve</keyword>'s monetary policy decision. A robust sentiment in the <keyword id="21468713" type="General" weightage="20" keywordseo="domestic-equity-market" source="keywords">domestic equity market</keyword> and softening <keyword id="19955839" type="General" weightage="20" keywordseo="crude-prices" source="keywords">crude prices</keyword> in the international market, however, cushioned the downfall in the Indian currency, <keyword id="20024982" type="General" weightage="20" keywordseo="forex-traders" source="keywords">forex traders</keyword> said. At the interbank foreign exchange market, the local unit opened weak at 83.39 and touched the intra-day low of 83.51 against the greenback during the session. The domestic currency finally settled at 83.48 (provisional) against the dollar, registering a loss of 10 paise compared to its previous closing level. On Friday, the rupee had declined 10 paise to close at 83.38 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.26 per cent to 105.53. The weakness in the dollar was attributed to investors' cautious approach ahead of the US Federal Reserve's monetary policy and global as well as domestic macroeconomic numbers to be released this week. The Federal Open Market Committee (FOMC) meeting will begin on Tuesday and the interest rate decision is expected to be announced on May 1. Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas, said the Indian rupee fell on Monday on positive US dollar in early trades and sustained FII outflows. However, positive domestic equities and softening crude oil prices cushioned the downside. "We expect the rupee to trade with a slight negative bias on selling pressure from foreign investors and expectations of a recovery in crude oil prices. However, improved global risk sentiments and contained geopolitical tensions in the Middle East may support the rupee at lower levels," Choudhary said, adding, "USD-INR spot price is expected to trade in a range of Rs 83.20 to Rs 83.70." Brent crude futures, the global oil benchmark, declined 0.53 per cent to USD 89.03 per barrel. "Crude oil demand is expected to face challenges from the US due to renewed inflationary fear," said Mohammed Imran, Research Analyst, Sharekhan by BNP Paribas. On the other hand, he said, the geopolitical risks appear to have eased considerably, removing some of the risk premium priced into the market. On the domestic equity market front, Sensex jumped 941.12 points, or 1.28 per cent, to settle at 74,671.28, and Nifty soared 223.45 points, or 1.00 per cent, to close at 22,643.40. Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday, as they offloaded shares worth Rs 3,408.88 crore, according to exchange data. Meanwhile, India's forex reserves decreased USD 2.282 billion to USD 640.334 billion for the seven days ended April 19 -- the second consecutive week of drop in the kitty, the Reserve Bank of India (RBI) said on Friday. SEE ALSO:<a href="https://www.businessinsider.in/tech/mobile/webstories/upcoming-smartphones-launching-in-india-in-may-2024/slidelist/109682003.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/upcoming-smartphones-launching-in-india-in-may-2024/slidelist/109682003.cms" target="_blank">Upcoming smartphones launching in India in May 2024</a><a href="https://www.businessinsider.in/business/auto/webstories/ultraviolette-f77-mach-2-electric-sports-bike-launched-in-india-starting-at-2-99-lakh/slidelist/109615934.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/webstories/ultraviolette-f77-mach-2-electric-sports-bike-launched-in-india-starting-at-2-99-lakh/slidelist/109615934.cms" target="_blank">Ultraviolette F77 Mach 2 electric sports bike launched in India starting at ₹2.99 lakh</a><a href="https://www.businessinsider.in/tech/mobile/news/nothing-phone-2a-india-exclusive-blue-edition-launched-starting-at-19999/articleshow/109686243.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/nothing-phone-2a-india-exclusive-blue-edition-launched-starting-at-19999/articleshow/109686243.cms" target="_blank">Nothing Phone (2a) India-exclusive Blue Edition launched starting at ₹19,999</a>

Rupee falls 10 paise to settle at 83.48 against US dollar

<ul><li>The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> will conclude the three-day <keyword id="19913109" type="General" weightage="20" keywordseo="Monetary-Policy-Committee" source="keywords">Monetary Policy Committee</keyword> (<keyword id="19918491" type="General" weightage="20" keywordseo="MPC" source="keywords">MPC</keyword>) meeting today.</li><li>The central bank is expected to announce its decision on policy rates.</li><li>The <keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword> has maintained the <keyword id="20094323" type="General" weightage="100" keywordseo="repo-rate" source="keywords">repo rate</keyword> at 6.50% for the past nine meetings.</li></ul>The Reserve Bank of India (RBI) is set to conclude the three-day Monetary Policy Committee (MPC) meeting today, with Governor <keyword id="19913110" type="General" weightage="20" keywordseo="Shaktikanta-Das" source="keywords">Shaktikanta Das</keyword> expected to announce the central bank's decision on policy rates. The meeting, which <a href="https://www.businessinsider.in/finance/news/rbis-monetary-policy-committee-meeting-begins-today-announcement-on-october-9/articleshow/113999887.cms">began</a> on October 7, has garnered significant attention, as the RBI has maintained the repo rate at 6.50% for the past nine meetings. The repo rate has remained steady since the RBI adopted a cautious stance to balance inflation control and <keyword id="19900794" type="General" weightage="20" keywordseo="economic-growth" source="keywords">economic growth</keyword>. Key factors that the MPC is weighing include persistent inflationary pressures, particularly in food prices, as well as global economic uncertainties. According to data from the Ministry of Statistics &amp; Programme Implementation, while All India Consumer Price Index (CPI) inflation moderated to 3.65% in August--within the RBI's target band of 2-6%. <keyword id="19999654" type="General" weightage="20" keywordseo="food-inflation" source="keywords">Food inflation</keyword> remains elevated at 5.65%, above the central bank's medium-term target of 4%. This, coupled with rising global crude oil prices due to geopolitical tensions in West Asia, has intensified concerns over inflation. Despite these challenges, the RBI has so far opted for a status quo on the repo rate, aiming to foster economic recovery after the pandemic. However, today's announcement will be closely watched to see if the central bank shifts its stance, especially given the external pressures and uncertainties surrounding global markets. Economists, however, have noted that the RBI will not make any changes in its policy stance before December. "With the focus on taming headline inflation, the RBI is likely to hold the rates although the core inflation is within the limit. It is possible the RBI may shift to the neutral stand" said M Govind Rao, Member, of the Fourteenth Finance Commission and former Director, of the National Institute of Public Finance and Policy. On September 18, the US Federal Reserve announced a steep 50 basis points interest cut in its review meeting. US Fed announced the rate cuts after holding interest rates steady for eight straight meetings. "In this overarching macroeconomic setting of heightened geopolitical tensions, core inflation inching upwards, oil price volatility, and high food inflation, we anticipate a change in the RBI's policy stance from "withdrawal of accommodation" to "neutral" at its forthcoming MPC meeting on October 9, 2024. However, we do not see any rate action coming and the benchmark interest rates may not undergo any change" said Manoranjan Sharma, Chief Economist, Infomerics Ratings. Earlier this month the central government appointed three new members to the monetary policy committee. The MPC comprises three members from the RBI and three external members appointed by the Central Government. With inputs from ANI. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/byd-emax-7-electric-mpv-launched-in-india-starting-at-26-9-lakh/slidelist/114046121.cms">BYD eMax 7 electric MPV launched in India starting at ₹26.9 lakh</a> <a href="https://www.businessinsider.in/personal-finance/news/heres-how-a-reddit-user-was-able-to-get-an-iphone-16-at-under-27000/articleshow/114035179.cms">Here’s how a Reddit user was able to get an iPhone 16 at under ₹27,000</a> <a href="https://www.businessinsider.in/stock-market/news/hyundai-swiggy-ather-upcoming-large-ipos-in-india/slidelist/114014140.cms">Hyundai To Swiggy: Everyone wants to cash in on the IPO bonanza</a>

RBI MPC announcement today: Rates unlikely to change, RBI may change stance to neutral

<ul class="summary-list"><li>Federal Reserve officials seem to have stopped talking about recession as the threat has faded.</li><li>The r-word doesn't appear in the minutes from the central bank's last three meetings.</li></ul>The Federal Reserve is done talking about recession, notes from its recent meetings <a href="https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm" target="_blank" rel="noopener">show</a>.The word "recession" doesn't appear even once in the minutes from the central bank's last three meetings, which took place between September and December.In contrast, the term pops up more than a dozen times in reference to an upcoming economic downturn in the minutes from the preceding seven meetings, dating back to November 2022.The Fed's staff economists flagged the potential for a "recession" within the next year at both the November and December meetings in 2022, the minutes show. In March 2023, they projected "a mild recession starting later this year."Wall Street denizens surveyed by the Fed also rang the recession alarm repeatedly. "Desk survey respondents still saw a recession occurring in the near term as quite likely," read the minutes from the June meeting last year.They "continue to place significant probability of a recession occurring by the end of 2024," the July minutes read.The disappearance of the dreaded r-word from the Fed's meeting notes underscores how much the economic outlook has brightened in recent months. The trouble began when inflation spiked to 40-year highs in the first half of 2022, spurring Fed chair Jerome Powell and his colleagues to raise interest rates from almost zero to over 5% by the following July.Higher rates encourages saving instead of spending and makes borrowing more expensive, which helps to relieve upward pressure on prices. Yet they can also dampen consumer demand, deter corporate investment, drive up unemployment, pull down asset prices, and raise the risk of an economic slowdown or full-blown recession.The speed and scale of the hikes fueled concern of a <a href="https://www.businessinsider.com/us-economy-outlook-2024-shock-hard-landing-recession-morgan-stanley-2023-12">hard landing</a> among both the Fed staff and financial professionals, the minutes show. However, inflation has cooled to below 4% in recent months, unemployment remains at a historic low of under 4%, and the economy grew by nearly 5% in the third quarter, paving the way for the Fed to <a href="https://www.businessinsider.com/interest-rates-fed-pauses-increases-december-rate-cuts-powell-inflation-2023-12">stop raising rates and start cutting them instead</a>.The <a href="https://www.businessinsider.com/krugman-economy-interest-rate-cuts-inflation-recession-unemployment-fed-policy-2023-12">fading threat</a> of inflation and high rates seems to have assuaged growth fears both inside the Fed and out, removing the word "recession" from the conversation for now.

The Federal Reserve is done talking about recession

Mumbai: The Reserve Bank is unlikely to cut the benchmark <keyword id="20071327" type="General" weightage="20" keywordseo="interest-rate" source="keywords">interest rate</keyword> in its forthcoming bi-monthly monetary policy review later in the week as <keyword id="19999652" type="General" weightage="20" keywordseo="retail-inflation" source="keywords">retail inflation</keyword> is still a cause of concern, and there is a possibility of the Middle East crisis deteriorating further, impacting crude oil and commodity prices, say experts. Earlier this month, the government reconstituted the Reserve Bank's rate-setting panel -- <keyword id="19913109" type="General" weightage="20" keywordseo="Monetary-Policy-Committee" source="keywords">Monetary Policy Committee</keyword> (MPC). The reconstituted panel, with three newly appointed external members, will commence its maiden meeting on Monday. MPC Chairman RBI Governor Shaktikanta Das will reveal the outcome of the three-day discussion on Wednesday (October 9). The <keyword id="19899810" type="General" weightage="100" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> (RBI) has kept the repo or short-term lending rate unchanged at 6.5 per cent since February 2023, and experts think some easing could only be possible in December. The government has tasked the central bank to ensure that Consumer Price Index (CPI) based retail inflation remains at 4 per cent with a margin of 2 per cent on either side. In the current context, experts feel that the RBI may not follow the US Federal Reserve, which lowered the benchmark rates by 50 basis points, and the central banks of some developed nations, which have reduced the interest rates. "We do not expect any change in the <keyword id="20094323" type="General" weightage="20" keywordseo="repo-rate" source="keywords">repo rate</keyword> or stance by MPC. The reason is that inflation for September and October will be above 5 per cent, and the present low inflation is due to the base effect. Besides, core inflation is inching upwards," said Madan Sabnavis, Chief Economist, Bank of Baroda. Further, the recent Iran-Israel imbroglio can intensify, and there is uncertainty here, he said. "Hence, the status quo is the most likely option even for new members. Inflation forecast may be lowered by 10-20 bps and no change in GDP forecast likely," said Sabnavis. The central bank last hiked the repo rate to 6.5 per cent in February 2023 and since then, it has held the rate at the same level. Icra Chief Economist Aditi Nayar said that given the undershooting in the initial first quarter GDP growth relative to the MPC's forecast and the likely sizeable undershooting in the second quarter CPI inflation print as well, "we believe a stance change to neutral may be appropriate in the October 2024 policy review". This could be followed by a shallow rate-cutting cycle of 25 bps each in December 2024 and February 2025, she added. "The abundant monsoon offers some insurance for crop inflation. The impact of global political developments and geopolitical uncertainty on the growth inflation dynamics remains a risk," Nayar added. An HSBC report said three developments stand out -- softer growth numbers have trickled in recently, inflation has been falling, and the external environment has moved from rate hikes to cuts. "We believe the RBI doesn't gain from waiting any longer. We think it will change its stance from a hawkish 'withdrawal of accommodation' to 'neutral' in the upcoming 9 October policy meeting, followed by repo rate cuts of 25 bps each in the December and February meetings, taking the repo rate to 6 per cent," the report said. The RBI kept the repo rate unchanged at 6.5 per cent in its August bi-monthly review amid risks from higher food inflation. This was the ninth consecutive MPC meeting, which decided to maintain the status quo on the rate front. Pradeep Aggarwal, founder and chairman, Signature Global (India) Limited, said while the real estate industry, developer community, and homebuyers are hoping for an interest rate cut in the upcoming monetary policy review, the RBI is likely to hold on to the interest rate cuts for the tenth consecutive time. "The apex bank still seems uncomfortable with the overall retail inflation scenario, particularly food inflation. As such, it is expected to maintain the status quo. The recent interest rate cut by the US Federal Reserve has ignited similar hopes even in India, but the domestic scenario is very different," he added. SBM Bank India Head Treasury Mandar Pitale believed that the MPC has persistently advocated a restrictive policy until inflation aligns durably towards the 4 per cent target. "With the unfavourable base effect taking the next couple of CPI prints near 5 per cent plus or minus, it will pose a major challenge for MPC to start easing from the October meeting," Pitale said, adding that the MPC is also expected to deliberate upon the global factors like growth-inflation behaviour in developed economies. The government has appointed Ram Singh, Saugata Bhattacharya, and Nagesh Kumar as external members of the MPC. They have replaced Ashima Goyal, Shashanka Bhide, and Jayanth R Varma. Apart from the Governor, the other internal members are the RBI Deputy Governor in charge of monetary policy Michael Debabrata Patra and the Executive Director monetary policy department of RBI Rajiv Ranjan. In an off-cycle meeting in May 2022, the MPC raised the policy rate by 40 basis points and it was followed by rate hikes of varying sizes, in the subsequent meetings till February 2023. The repo rate was raised by 250 basis points cumulatively between May 2022 and February 2023.

Status-quo on interest rate likely, say experts ahead of RBI's policy review

<ul class="summary-list"><li>US stock futures rose on Monday as investors awaited earnings and the Fed's meeting this week.</li><li>The 10-year Treasury yield and US Dollar Index dropped, but have risen considerably this year.</li></ul>Stocks climbed in premarket trading on Monday as investors looked forward to digesting more corporate earnings and hearing from the Federal Reserve in the week ahead.<a href="https://markets.businessinsider.com/futures/s&amp;p-500-futures">S&amp;P 500</a> and <a href="https://markets.businessinsider.com/futures/dow-futures">Dow Jones Industrial Average</a> futures were up 0.2% shortly after 5 a.m. ET, while <a href="https://markets.businessinsider.com/futures/nasdaq-100-futures">Nasdaq 100</a> futures were up 0.3%.The closely monitored <a href="https://markets.businessinsider.com/rates/u-s--rates-10-years">10-year Treasury yield</a> slid by 0.03% to 4.64%. It has risen sharply from 3.94% at the start of this year, as stubborn inflation has stifled hopes that the Federal Reserve will cut interest rates this summer. The central bank is scheduled to meet this week and announce its latest policy decision on Wednesday.The <a href="https://markets.businessinsider.com/index/us-dollar-index">US Dollar Index</a>, which tracks the greenback's value against a basket of foreign currencies, fell by 0.3% to 105.6. It has jumped from about 102 points in early January as the prospect of elevated rates has made the dollar more appealing to hold."The dollar index starts the week under selling pressure ahead of a series of jobs data from the US and the Fed's latest policy decision," said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, in a morning note."The Fed is not expected to make any changes to its policy this week, nor in June, nor in July, nor in September … with such a visible U-turn in US inflation towards the undesired direction, the Fed should not act anytime soon," she added.Investors started the year expecting a slew of rate cuts, but inflation has <a href="https://www.businessinsider.com/inflation-cpi-food-energy-gas-prices-consumer-price-index-2024-4">ticked up</a> from 3.1% in January to 3.5% in March. On the other hand, GDP growth <a href="https://www.businessinsider.com/gdp-gross-domestic-product-first-quarter-economy-growth-2024-4">slowed</a> to 1.6% on an annualized basis in the first quarter, down from 3.4% in the fourth quarter. The combination of persistent price growth and a cooling economy has <a href="https://www.businessinsider.com/stagflation-us-economy-gdp-growth-outlook-recession-forecast-inflation-rates-2024-4">stoked concerns of stagflation</a>.Domino's Pizza, MicroStrategy, and Paramount Global are among the companies <a href="https://markets.businessinsider.com/earnings-calendar">set to report earnings</a> later.

You Searched For "Federal Reserve meeting" and got 12 results

RBI's monetary policy committee meeting begins today, announcement on October 9

BI India Bureau

US Fed cuts interest rates by 25 bps, Powell notes Trump's victory to have no impact on policy decisions

Ira Alok Puranik

Fed meeting starts today, rate cut on the cards. Here’s what experts are saying

Ira Alok Puranik

Not just Fed, but central banks of these countries also tinkered with rate cuts this week

Ira Alok Puranik

3 couples who recently got mortgage interest rates under 3% share how they did it

Alcynna Lloyd

Expect RBI to again pause repo rate in February policy meeting: SBI Research

ANI

Meet the top 4 candidates Trump is considering for Secretary of the Treasury

Matthew Loh

Rupee falls 10 paise to settle at 83.48 against US dollar

PTI

RBI MPC announcement today: Rates unlikely to change, RBI may change stance to neutral

BI India Bureau

The Federal Reserve is done talking about recession

Theron Mohamed

Status-quo on interest rate likely, say experts ahead of RBI's policy review

PTI

Stock market today: futures rise as traders await interest rate clues from the Federal Reserve

Theron Mohamed

Popular Keywords

Buying Guides