RBI MPC Meet LIVE Updates: 'Be not slack and be diligent', says Uday Kotak on central bank's repo rate decision

Wright Research Founder Sonam Srivastava said, "From a stock market perspective, the RBI MPC meeting's decision to maintain the repo rate unchanged is expected to create a positive momentum, especially for the banking sector. The focus on the gradual "withdrawal of accommodation" is also reassuring for the market, as it ensures the sustainability of the economic recovery in the long run. However, the market will be closely monitoring any future announcements by the Governor regarding inflation and global banking instability, as they may impact the market's momentum. Other sectors such as real estate and infrastructure are also expected to benefit from the current economic growth trajectory."

Also read: RBI MPC announcement: Central bank keeps repo rate constant, other key takeaways

"After six consecutive hikes, RBI MPC’s decision to pause on further increase in rates is a welcome move. With inflationary pressures now taming down, this will bring back focus on growth, credit off-take, consumer spending, Real Estate, Infrastructure and specifically housing sector demand," Colliers India MD– Capital Markets and Investment Services Piyush Gupta said. 

Cyrus Mody, Founder & Managing Partner, Viceroy Properties said, “The RBI’s announcement was a prudent one as the governor kept the repo rate unchanged at 6.5%, bringing the total hike since May 2022 to 250 basis points, including six hikes. The economy is showing signs of improvement but the central bank wants to keep inflation in check.  It is expected that going ahead the RBI will pause the rates at this level and start easing the rates from CY25. The central bank is aiming to strike a balance between growth rate and inflation.  We hope that a regular monsoon year will help with lower inflation thereby ease in the interest rates. MMR as a market will continue to witness strong demand as various transit infrastructure projects see completion and commissioning in the next 12-18 months. Also, projects developed by reputed names will continue to see demand due to their quality construction and timely delivery.”
 

Also read: RBI Policy 2023: RBI keeps repo rate unchanged at 6.5%, all you need to know

BSE Sensex and NSE Nifty saw an uptick after the Reserve Bank of India (RBI) held repo rate steady at 6.50 per cent after six consecutive hikes. Sensex rose 226 points or 0.38 per cent to 59,915 whereas Nifty moved 61 points or 0.35 per cent to 17,618. 

• Repo rate unchanged at 6.50 per cent 
• Real GDP likely to have grown at 7% in 2022-23
• Real GDP growth for 2023-24 is projected at 6.5%
• GDP growth for Q1, Q2, Q3, and Q4 is projected at 7.8%, 6.2%, 6.1% and 5.9% respectively
• CPI inflation is projected at 5.2% in 2023-24
• CPI inflation in Q1, Q2, Q3, and Q4 is projected at 5.1%, 5.4%, 5.4% and 5.2% respectively 

Kotak Mahindra Bank CEO Uday Kotak said in a tweet, "Monetary policy: Focus on financial stability. Rate pause without change in stance. Global banking fragility on every Central Bank's mind in this viral digital world. While Indian financial system is in good shape, let's 'be not slack and be diligent' !"

ANAROCK Group Chairman Anuj Puri said, "Much against general expectations, the RBI decided to keep the repo rates unchanged at 6.5% today. This is indeed good for the residential real estate market, which faces a tough road ahead amid massive layoffs by large corporates the world over. India is not decoupled from global economic dynamics and their invariable impact on the housing uptake here. The RBI’s decision to keep the repo rates unchanged comes as a welcome respite to homebuyers."

Dr Niranjan Hiranandani, Vice Chairman NAREDCO National said, "In contrast to the World Bank, India Inc. applauds the RBI's decision to pause the rate hike cycle. This act of relief will restore confidence in homebuyers’ sentiment and boost demand rally in the real estate. The industry body now calls for fiscal intervention from the Government of India to cool the inflationary heat caused by persistent geopolitical turbulence caused by the collapse of foreign banks, supply chain challenges, and global financial instability. Additionally, devising innovative flexi or step-up EMI schemes by the banks and Housing Financing Institutions will be conducive for the market players to onboard new home buyers in the high interest rate regime.”

The central bank decided to keep the repo rate constant this time around, thus, not impacting the home and personal loans. Here's how much the repo rate has moved since May 2022

Also read: RBI cuts inflation projection for FY24 to 5.2%

Bankbazaar.com CEO Adhil Shetty says, "Stock markets might see the short-term appreciation on the back of this announcement. The long term remains to be seen but the outlook gets optimistic. Long-term debts will appreciate, and bond fund NAVs should rise in the short term. As far as FDs are concerned, you must lock in to higher rates since we don't know if things will get any better in terms of interest rates."

Boman Irani, President-Elect, CREDAI National said, "We laud the RBI for maintaining the repo rate, in a move that is bound to go a long way in sustaining the sales momentum that we’ve witnessed in the residential segment. Given the potential adverse impact of a hike in repo rate and its ripple effect on both Housing demand and supply, we, at CREDAI, are extremely pleased and welcome the central bank’s decision. This move would provide a further boost for the affordable and mid-income housing segments, in particular. Coupled with the Central Government also hiking its outlay for the PMAY program during this year’s Budget, we expect the demand for affordable housing to grow in the upcoming quarters.”

The central bank permitted operation of pre-sanctioned credit lines at banks in order to expand the footprint of unified payments interface (UPI). -- PTI

RBI will maintain agile approach for liquidity management and manage govt borrowing programme in non-disruptive manner, says Governor Shaktikanta Das.

The current account deficit (CAD) stood at 2.7 per cent of the total GDP in the first two quarters of 2022-23, said RBI Governor Shaktikanta Das.

RBI Governor Shaktikanta Das said that the Indian Rupee moved in an orderly manner in 2022 and continued to do so in 2023. 

Adhil Shetty, CEO, Bankbazaar.com, says, “In the bi-monthly monetary policy review and the first of the new financial year, the Reserve Bank of India decided to keep the repo rate hike unchanged at 6.50 per cent after softening of inflation briefly. 

After raising the repo rate by 250 basis points since May last year to bring inflation within its tolerance limit, the RBI has pressed the pause button on the repo rate hike to check the progress the central bank has made so far, sending positive sentiments across sectors. Homeowners will meet this announcement with a sigh of relief since they were reeling under the pressure of lengthening loan tenors and rising interest rates. More importantly, inflation has softened though it remains higher than RBI's tolerance level. It's expected inflation will continue to soften.”

2023-24-- 5.2%

Q1- 5.1%

Q2- 5.4%

Q3- 5.4%

Q4-5.2%

2023-24-- 6.5%

Q1-7.8%

Q2-6.2%

Q3-6.1%

Q4-5.9%

RBI MPC Meeting live: Governor Shaktikanta Das said that the gross domestic product (GDP) grew 7 per cent in 2022-23, indicating the economic conditions were resilient.