Indices end with marginal losses after RBI’s move on repo rate
At close, the Sensex was down 56.74 points or 0.07% at 81,709.12, and the Nifty was down 30.60 points or 0.12% at 24,677.80.
At close, the Sensex was down 56.74 points or 0.07% at 81,709.12, and the Nifty was down 30.60 points or 0.12% at 24,677.80.
In its last three meetings in April, June, and August, the RBI kept the repo rate unchanged at 6.5 per cent.
The moderation in the country's retail inflation in April has validated the Reserve Bank of India's (RBI) decision to pause the repo rate in its first 2023 monetary policy meeting, according to SBI Research.
"As financial conditions tighten, global financial markets are experiencing surges of volatility, with sporadic sell-offs in equity and bond markets, and the US dollar strengthening to a 20-year high," the minutes said.
The 50 basis points hike in the repo rate coupled with inflationary pressure is likely to impact the sentiment of the Housing sector particularly in the affordable and mid-range housing segments.
The latest cuts come after RBI, last week, had reduced repo rate by 40 basis points to 4 per cent from 4.40 per cent.
Das said government revenues have been impacted severely due to the slowdown in economic activity amid the pandemic.
Shaktikanta Das further informed that the GDP growth in 2020-21 is expected to remain in the negative category with some pick up in second half.
The RBI Governor Shaktikanta Das announced that the Monetary Policy Committee of the central bank voted with to reduce the key-repo-rate to 4 per cent from 4.40 per cent.
Amid the crisis, the RBI has slashed the reverse repo rate by 25 basis points to 3.75 per cent from 4 per cent due to the Coronavirus-related economic challenges.
