RBI hits a pause on rate cut as inflation took center stage.

The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fallout. In our view, keeping the key policy rate unchanged seems prudent, given the uncertainty on the inflation front and the fact that the RBI has provided significant accommodation in the recent months. (August 06, 2020)

Click here for the full version of comments and chart functions.

Recently updated pages

India's consumer confidence shows weakest sentiment in July.

According to RBI's July round of Consumer Confidence Survey (CCS), consumer confidence deteriorated further in July with the current situation index (CSI) recording its all-time low at 53.8. On the bright side, the respondents turned optimistic about the future one year ahead. The future expectation index (FEI) charted back into the positive territory to 105.4 compared to 97.9 in the last survey indicating signs of recovery in the coming year....

Read more..
RBI hits a pause on rate cut as inflation took center stage.


The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fallout. Consequently, the repo rate stands unchanged at 4% and the reverse repo rate at 3.35%. Though the economy is still far from a significant revival and needed monetary policy support, inflation took center stage. Retail inflation, measured by CPI,...

Read more..
Overall business sentiments in the Indian manufacturing sector remained optimistic in Q4 2019-20.

The Industrial Outlook Survey (IOS) of the manufacturing sector has been conducted by the Reserve Bank of India (RBI) since 1998 on a quarterly basis. The survey mainly seeks to capture the qualitative assessment on business environment for the current quarter and their expectations for the next quarter.

The manufacturing sector companies with paid-up capital of over Rs 5 million are selected and responses t...

Read more..
A slight improvement in demand conditions in India's manufacturing sector.

The Reserve Bank of India’s Order Books, Inventories and Capacity Utilisation Survey (OBICUS) provides an insight into the demand conditions faced by the Indian manufacturing sector. The RBI has been conducting the survey on a quarterly basis since 2008 by covering over 2500 public and private limited companies in the manufacturing sector. The survey represents the movements in actual data on order books, inventory levels of raw materials and f...

Read more..
August 5, 2020

Exchange Rate

Indian rupee gained against dollars in July 2020.

The exchange rate of the Indian Rupee(INR) along with other major currencies such as US Dollar, Euro, and Japanese Yen are published by the Reserve Bank of India on a monthly and daily basis. The spot exchange rate specifies how much Indian rupee is equivalent to a unit of the specified currency. The Indian rupee followed a pegged exchange rate system till 1991 after which it was shifted to a floating exchange rate system following an economic crisis in the country.

Th...

Read more..