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CPI Projection is revised to 5.2-5% in H1FY22 Vs 5.2-4.6% forecast earlier
H1FY22 GDP growth seen in the range of 8.3-26.2% and 6% in Q3FY22: RBI
RBI projects CPI inflation at 5.2% In Q4 FY21
Investment-oriented stimulus given under Atmanirbhar Bharat have begun to show results: RBI Guv
Inflation has returned to tolerance band (of 4 pc): RBI Guv
10.5% GDP growth outlook for 2021-2022
2020 tested our capability, 2021 is setting tone for new economic era: RBI Guv
DI & FPI investments have surged in recent months, reposing faith in economy: RBI Guv
Capacity utilisation in mfg sector improved to 63.3% in Q2 Vs 47.3% in Q1
- – Policy rate remains unchanged
- Accommodative stance to continue for now
- Reverse repo rate unchanged at 3.35%
- MSF and bank rate unchanged at 4.25%
Signs of recovery have strengthened further & list of normalising sectors is expanding
– RBI Guv
Need of the hour is continue to support growth, return growth to higher trajectory: RBI Guv
MPC keeps the reverse repo rate unchanged 3.35%
Inflation has eased below the tolerance level of 6%. Outlook on growth has improved significantly: RBI Guv
MPC continues to maintain the policy stance as ‘Accommodative’
MPC in its February 5 policy meet decides to keep repo rate unchanged at 4%
Sensex gains 305 points, currently at 50,920
SBI at new high
Price as on 05 Feb, 2021 09:54 AM, Click on company names for their live prices.
Massive India borrowing puts pressure on RBI
“The higher borrowing is a concern for the market,” said Anoop Verma, senior vice president at DCB Bank Ltd. in Mumbai. “It will be difficult for the RBI to anchor yields around 6%.” Yet those with an eye on bond markets want the RBI to outline when and how much debt it will buy.
The COVID-19 pandemic is more or less behind us now hence the monetary policy must focus on reviving the economy…Look forward to some constructive actions on the SME and MSME sector as a lot more needs to be done to this segment which stands as the backbone in reviving the economy
– Aarti Khanna, founder and CEO, AskCred.com
What real estate sector wants?
The RBI will have to cut policy rates which will help reduce home loan rates as well as wholesale lending rates which will revive growth in the pandemic-ravaged real estate economy, Ramesh Nair, former CEO of JLL India opined.
Economy requires both monetary and fiscal policy support
Mayur Modi, Co-Founder, Moneyboxx Finance, too was of the view that the central bank would continue its accommodative stance on monetary policy given that the economy is still not out of woods and requires constant support both from monetary and fiscal policy.
Sensex crosses 51,000 mark ahead of RBI policy announcement
Strong opening for markets, Nifty hits 15,000
We expect an extended pause for the repo rate, with the stance to be changed to neutral in the August 2021 policy review or later, once there is clarity on the durability of the economic recovery
– Aditi Nayar, Principal Economist, ICRA Limited
To continue the pause…
“We expect the MPC (Monetary Policy Committee) to continue the pause. The fall in inflation rate was mainly due to fall in food prices. The core inflation rate has not come down. Excess liquidity needs to be watched. The vaccine availability is not going to impact macro economy immediately,” opined M Govinda Rao, Chief Economic Advisor, Brickwork Ratings.
After the expansionary budget, we may see better growth forecasts
Given the encouraging trend shown by high-frequency indicators, easing inflation, the vaccine roll-out and the budget’s focus on growth, the MPC could convey that it’s reached the end of the line for supporting the economy, according to ICICI Bank analysts.
Monetary policy need not be restricted immediately to make space for fiscal policy and rather complement the fiscal. Any communication along these lines would set the broad direction of monetary policy going forward
– Samiran Chakraborty, chief India economist at Citigroup Inc
Lower inflation forecast?
Consumer prices eased to 4.59% in December, marking the first time in nine months that price-growth returned within the RBI’s 2%-6% target band. That’s boosted the case for the central bank to lower its inflation forecast — from 5.8% for the current quarter and 4.6%-5.2% in the first half of the next fiscal year starting April — and continue with an easy monetary policy stance.
It will be difficult for the market to absorb outsized borrowings and the RBI’s support will eventually be needed
– Himanshu Malik, a fixed-income strategist at HSBC Holdings Plc in Hong Kong (Bloomberg)
Looking at RBI for guidance
Traders will be looking forward to the RBI outlining an open-market bond purchase calendar, while some others expect easing the so-called held-to-maturity norms to boost banks’ debt purchases.
What economists are expecting from RBI?
The benchmark repurchase rate will be maintained at 4% Friday, according to 24 of the 32 economists in a Bloomberg survey, although cooling inflation has stoked expectations for a rate cut. Five of those surveyed expect a 25 basis-point cut and two predict a sharp 50 basis-point reduction.
SGX Nifty indicates strong opening above 14,950
Schools in Delhi reopen for Class 9 and Class 11
Schools in Delhi reopen for Class 9 and Class 11; visuals from Rajkiya Sarvodaya Kanya/Bal Vidyalaya in West Vinod… https://t.co/B0xfyTIub3
— ANI (@ANI) 1612492256000
UK revokes license for Chinese State Broadcaster CGTN
In an effort to clamp down content that lacks “editorial responsibility”, UK regulators have pulled the broadcasting license for China Global Television Network, or CGTN.
Ethiopia’s COVID-19 cases surpass 140,000
Key aide of Aung San Suu Kyi in Myanmar arrested: Party
Celebrity manager Rahila Furniturewala and businessman Karan Sajnani accused in connection with a drug case related to Sushant Singh Rajput, have been arrested: Narcotics Control Bureau
State Health Min Anil Vij inaugurates second phase of COVID vaccination drive in Gurugram
“In this phase, we’ll vaccinate about one lakh security forces personnel including the police & home guard. People should not be afraid of getting the vaccination,” he says.
Tokyo stocks open higher on US stimulus hopes
The benchmark Nikkei 225 index was up 1.05 percent or 299.18 points at 28,641.13 in early trade, while the broader Topix index gained 0.88 percent or 16.33 points to 1,881.45.
Mexico reports 1,682 new coronavirus deaths
An earthquake of magnitude 4.0 on the Richter scale occurred near the Nepal-India border in Sikkim at 3:43 am today
National Centre for Seismology
Shaktikanta Das to make announcement today
Watch out for Monetary Policy statement by RBI Governor @DasShaktikanta at 10:00 am on February 05, 2021 YouTube: … https://t.co/Mcv5OfcZDE
— ReserveBankOfIndia (@RBI) 1612413006000
US will take on challenges posed by China directly: Biden
The United States will take on the challenges being posed by China directly, but will not hesitate to work with Beijing when it is in America’s interest to do so, President Joe Biden said on Thursday.
Germany detects new coronavirus variant linked to Norway, Luxembourg in Halle
A new coronavirus variant, known as B.1.1.6 and previously identified in Norway and Luxembourg, was detected for the first time in Germany, in the central city of Halle, Mayor Bernd Wiegand said on Thursday.
US ending support for offensive operation in Yemen: Biden
US President Joe Biden said on Thursday that the United States is stopping all support for the offensive operations in Yemen, but will continue to defend Saudi Arabia against other threats.
Trump lawyers label calls for Senate trial testimony as ‘PR stunt’
Lawyers for former US President Donald Trump on Thursday (local time) dismissed the prospect of him testifying at his Senate trial next week by calling it a public relations (PR) stunt after impeachment managers requested that he do so under oath.