RBI's decision to maintain status quo on policy interest rate is a welcome move and indicates that growth will pick up from here onwards, finance ministry official said.
Banks to raise interest rates even though RBI is leaving its rates unchanged, as risks such as surging bond yields and more provisioning requirements erode their profit.
Fears of the RBI going for a "rate hike" are overdone and there is still room for a 25 bps rate cut in the August monetary policy review, provided rains are normal.
With the RBI holding rates, India Inc said the status quo was on expected lines amid concerns over inflation and risks emanating from a wider fiscal deficit.
The RBI flagged risks from govt decision to delay fiscal consolidation plan, warning that "significant deviations" and slippages will make meeting inflation challenging.
The RBI lowered the economic growth projection for 2017-18 to 6.6 percent but said that it will accelerate to 7.2 pc in the next financial year.
The RBI kept its key repo rate at 6 pc, and also retained its “neutral” stance, seeking to support economic growth even as inflation has accelerated to a 17-month high.
The Reserve Bank opted for the widely expected status quo in key rates citing inflation concerns and flagged risks from wider fiscal deficit.
The RBI is expecting retail inflation to rise to 5.1 pc in last quarter of ongoing fiscal due to rising crude oil prices and hike in salary components of govt employees.
The outcome of the 6-member MPC meeting is being keenly awaited by stakeholders amidst a huge sell-off in the stock markets globally.
To Issue Rs 8800 Cr worth equity shares on preferential basis to GoI
SBI puts Rs 1935 Cr worth loans up for sale to 24 entities
Seeks bids on cash basis or a mix of cash and security receipts
Approves Issue Price At Rs 300.82/Share For Preferential Issue To Govt
Financial Express Reports
POWER GRID CORP
Emerges as lowest bidder for Rs 1000 cr project
To set up Vindhychaal-Varanasi 765 KV transmission line
Financial Express Reports
Arm To Buy 65% Stake In Indian Film Combine Pvt For Rs 1,105 Cr
Arm To Also Buy 20% Of Indian Film Combine From Xander Group Arm, 45% from Co's Promoter Group
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AVIATION IN FOCUS
Jan Domestic Air Passenger Traffic At 1.15 Cr, Up 19.7% YoY
Air India Jan Passenger Load Factor At 84.6% vs 81.8% MoM
Jet Airways Jan Passenger Load Factor At 88.7% vs 88.5% MoM
IndiGo Jan Passenger Load Factor At 89.7% vs 90.8% MoM
SpiceJet Jan Passenger Load Factor At 95.0% vs 95.6% MoM
Air India Jan Market Share At 13.3% vs 13.1% MoM
Jet Airways Jan Market Share At 14.3% vs 14.6% MoM
IndiGo Jan Market Share At 39.7% vs 39.4% MoM
SpiceJet Jan Market Share At 12.6% vs 12.7% MoM