RBI Governor LIVE Updates: Repo rate hiked by 40 bps; CRR increased by 50 bps

Watch the LIVE here

RBI Governor LIVE: RBI withdraws its ‘accommodative’ stance
RBI is not to be bound by any rule book, said RBI Governor as it withdrew from its ‘accommodative’ stance, citing inflation pressures becoming more acute. He believed that the Indian economy has managed to weather the economic shock while citing a quote that “The trials you encounter will introduce you to your strengths”

RBI Governor LIVE: Ramesh Nair, CEO, India & Managing Director, Market Development, Asia at Colliers: “In an off-cycle monetary policy meet, the RBI increased the repo rate by 40 basis points to 4.4% for the first time in almost two years. This comes at a time when inflation has been rising to an 18-month high amidst a rebound in domestic economic activity. From a real estate perspective, we don’t expect an immediate increase in home loan rates by commercial banks. This makes it a good time for homebuyers who were on the fence about buying their dream home. With home prices expected to rise in certain segments, it is an opportune time for homebuyers to take advantage of the current low home loan rates and largely stable prices before banks reset interest rates.”

RBI Governor LIVE: Sensex plummets 900 points as RBI hikes rate by by 40 bps 

The Reserve Bank of India raised its key rates by 40 basis points to 4.4% from 4%. Cash reserve ratio also hiked by 50 bps. The surprise rate hike has sent the 10 year government bond yields to the highest since May 2019, while stocks are dropping.The 10 year bond yield surged 30 basis points to hit a near three year high of 7.392% from its previous close of 7.117%. Bond yields and prices move in opposite directions.The benchmark Sensex fell over 1000 points to 55915 points while Nifty lost 350 points to 16740 points. Meanwhile, the Rupee strengthened to 0.25% to 76.32 a dollar

RBI hikes repo rate by 40bps to 4.40%, CRR by 50bps, cites inflation worries

Reserve Bank of India (RBI) Governor Shaktikanta Das announced a 40-basis-point hike in the key lending rate and raised the cash reserve ratio by 50 basis points in an unscheduled announcement on May 4.

One basis point is one hundredth of a percentage point.

The revised repo rate stands at 4.40 percent and the CRR is increased to 4.5 percent. Click to Read More

RBI Governor LIVE: RBI hikes repo rate by 40bps to 4.40%, CRR by 50bps, cites inflation worries

Reserve Bank of India (RBI) Governor Shaktikanta Das announced a 40-basis-point hike in the key lending rate and raised the cash reserve ratio by 50 basis points in an unscheduled announcement on May 4. One basis point is one hundredth of a percentage point. The revised repo rate stands at 4.40 percent and the CRR is increased to 4.5 percent. Today’s decision should be seen as part of the central bank’s announcement last month of gradual withdrawal from easy money regime, Das said. “The decision today to raise repo rate may be seen as reversal of rate action of May 2020. In last month, we had set out a stance of withdrawal of accommodation. Today’s action need to be seen in line with that action.” Read more here

LIC IPO Subscription Update:

RBI Governor LIVE: Worsening of terms of trade could have negative implications for CAD, but itwill be comfortably financed, says Shaktikanta Das

RBI Governor LIVE: Shaktikanta Das: Monetary policy still remains accommodative, approach will be to focus on careful & calibrated withdrawal of accommodation.

RBI Governor LIVE: RBI Governor Shaktikanta Das: We in the RBI remain stadfast in our commitment to contain inflation and support growth. Inflation must be tamed in order to keep the Indian economy resolute on its course to sustainable and inclusive growth.

RBI Governor LIVE: RBI increases Cash Reserve Ratio by 50 bps to 4.50%

In keeping with stance of withdrawal of accommodation, it has been decided to increase the Cash Reserve Ratio by 50 basis points to 4.50 percent, said Shaktikanta Das. CRR hike can suck out liquidity to the tune of Rs 83711.55 crore, he said. CRR hike effective from midnight of May 21.