What's NewRBI maintains status quo for policy rate at 6%

The decision to keep the repo rate unchanged on Dec 6th, was largely in line with market expectations, on the back of hardening inflation and a recovery in economic growth. While an interest rate cut would be welcomed by the government and corporates likewise, the fear of fiscal slippages and unfurling of the bank recapitalisation plan leave less room for a rate cut in the upcoming February 2018 policy meet. (December 6th, 2017)

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Industrial production growth slows down for the second consecutive month.

Industrial production of India decelerated for the second straight month to 2.2% YoY growth in October 2017, falling below market expectations. The revised figures reveal production grew by 4.1% YoY in September 2017. On a cumulative basis in the April-October period, industrial production grew only by 2.5% YoY, indicating a muted growth trend in the first half of FY 18.

The fall in the growth rate in Octobe...

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Retail inflation soars to a 15-month high of 4.88% YoY in November 2017.

 

In November 2017, CPI inflation accelerated to a 15-month high of 4.88% YoY, from a reading of 3.58% YoY in the previous month. This is the first time since the inception of MPC that the retail inflation has crossed the medium-term inflation target (4%) and has entered the upper end of the inflation target bandwidth.(4-6%).

The CPI inflation print beat the market expectations (Reuter's Poll) of 4.2%. T...

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At the end of November 2017, the USD-INR exchange rate was 64.43, appreciating from 64.77 in the last month.

The exchange rate of the Indian Rupee(INR) 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 floating exchange rate system following an economic crisis ...

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The residential property market continues on an uptick as the All-India HPI rose by 8.7% YoY during April-June 2017.


The residential property market continues to remain on an uptick as the All-India House Price Index (HPI) annual growth rose by 8.3% YoY in April-June 2017, although a slight moderation from a six-month high growth of 10.5% YoY recorded in the previous quarter. The house price inflation was brought about by the growth in HPI in major cities such as Kanpur (18.2% YoY), Ahmedabad (17.2% YoY), Delhi (11.8% YoY), Jaipur (4.6% YoY). Other cities too...

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Money supply grows by 8.4% YoY the highest since April due to low base effect.


The total money supply in India, as measured by M3 was Rs 131.9 trillion by the end of November 27th, 2017. The 8.4% year on year(YoY) growth in M3 is the highest growth rate in the current financial year. The significant increase in the money supply is basically a temporary phenomenon. The sudden shortage of liquidity with the banks and public in November 2016 has caused a low base year effect and that has driven the growth high up in N...

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