RBI's monetary policy News

The Reserve Bank is expected to leave key interest rates unchanged in the current financial year despite low inflationary pressures and might go for a cumulative 50 bps rate hike next April, says a Nomura report.

India's growth is likely to remain unchanged at 7.1 percent this fiscal, as investments are low and government spending may not remain high given the fiscal consolidation path the country is treading, says a report.

The interest rate hike by the US Fed is not likely to create much volatility in Indian markets and will have only a minimal impact on the RBI's monetary policy stance, industry bodies said on Thursday.

Taking on his detractors, Governor Raghuram Rajan on Tuesday said the criticism that RBI killed growth with high rates was at odds with "received wisdom" of India being fastest-growing and urged the government to look beyond 'motivated criticism' to protect the central bank's autonomy.

In what is likely to appease the pro-growth lobby, Japanese brokerage Nomura has opined that most names being considered to fill the post of RBI Governor have a neutral-to-dovish stance on fighting inflation, unlike the incumbent Raghuram Rajan whose hawkishness is well known.

In the wake of the protest, settlement activity of the banking system of the country is likely to be disrupted on November 19.

With RBI announcing 11 licences for payments banks, top private sector lender ICICI Bank on Thursday said the entry of these new entities would strengthen the overall financial ecosystem and also benefit existing banks.

With less than a week left for the RBI's next monetary policy, Moody's on Thursday said there is room for rate cut and expressed hope that the central bank would reduce it by 0.25 percent to push growth.

The National Stock Exchange index Nifty was up by 22.50 points, or 0.26 percent, at 8,682.40.

After a gap of nearly two years, Rajan had last cut the repo rate on Jan 15.

Finance Minister Arun Jaitley on Tuesday sought to dispel the impression that he had taken on RBI Governor Raghuram Rajan on interest rate saying he had only suggested steps to boost India's manufacturing capabilities.