net_left adver left

India cenbank raises key rate 50 bps as inflation seen staying elevated

Friday, August 5, 2022

By Swati Bhat and Chris Thomas

MUMBAI (Reuters) - The Reserve Bank of India's key policy repo rate was raised by 50 basis points on Friday, the third increase in the current cycle to cool stubbornly high inflation that has remained above the central bank's tolerance band for six straight months.

With June retail inflation hitting 7%, economists polled by Reuters had expected the third rate hike in four months, but views were widely split between a 25 bps to a 50 bps increase.

The monetary policy committee (MPC) raised the key lending rate or the repo rate to 5.40%.

"Inflation is projected to remain above the upper tolerance level of 6% through the first three quarters of 2022-23, entailing the risk of destabilising inflation expectations and triggering second round effects," the MPC said in its statement.

The Standing Deposit Facility rate and the Marginal Standing Facility Rate were adjusted higher by the same quantum to 5.15% and 5.65%, respectively.

The RBI caught markets off guard with a 40 bps hike at an unscheduled meeting in May, followed by a 50 bps increase in June, but prices have shown little sign of cooling off yet.

With inflation staying elevated more rate hikes are all but inevitable in coming months, economists say.

"The RBI today raised the repo rate by 50 bps to 5.40% as we had anticipated, and struck a relatively hawkish tone despite inflation surprising to the downside in recent months," said Shilan Shah, senior India economist at Capital Economics.

"It's clear that the tightening cycle still has legs and we expect another 100 bps of hikes by early 2023," he added.

Spiking prices for food and fuel have hammered consumer spending and darkened the near-term outlook for India's economic growth, which slowed to the lowest in a year in the first three months of 2022.

The MPC retained its GDP growth projection for 2022/23 at 7.2% while its inflation forecast remained unchanged at 6.7%.

"With growth momentum expected to be resilient despite headwinds from the external sector, monetary policy should persevere further in its stance of withdrawal of accommodation to ensure that inflation moves close to the target of 4% over the medium term, while supporting growth," Governor Shaktikanta Das said in his address.

Das said the decision to increase rates was a unanimous one.

The benchmark 10-year bond yield climbed after the RBI's decision and was at 7.25% at 0600 GMT. It had declined to 7.1073% earlier on Friday after ending at 7.1566% on Thursday.

The partially convertible rupee firmed slightly to 79.0675 per dollar, from 79.16 prior to the policy decision. The local unit had closed at 79.4650 in the previous session.

Leave your comment
HOT AUTO TRADE BOT SOFTWARE adver right
APPROVED BROKERS
net_home_top HOT AUTO TRADE BOT SOFTWARE
16-08-2022 20:41:56 (UTC+7)

EUR/USD

1.0164

+0.0004 (+0.04%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

EUR/USD

1.0164

+0.0004 (+0.04%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

GBP/USD

1.2064

+0.0010 (+0.09%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (8)

Sell (1)

USD/JPY

134.63

+1.32 (+0.99%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (1)

AUD/USD

0.7015

-0.0007 (-0.10%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (1)

USD/CAD

1.2875

-0.0029 (-0.22%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (7)

EUR/JPY

136.84

+1.38 (+1.02%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (2)

EUR/CHF

0.9656

+0.0042 (+0.43%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (7)

Sell (0)

Gold Futures

1,791.80

-6.30 (-0.35%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

Silver Futures

20.152

-0.120 (-0.59%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

Copper Futures

3.6325

+0.0150 (+0.41%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

Crude Oil WTI Futures

89.56

+0.15 (+0.17%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (8)

Sell (0)

Brent Oil Futures

95.11

+0.01 (+0.01%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

Natural Gas Futures

9.227

+0.499 (+5.72%)

Summary

Neutral

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (3)

Sell (3)

US Coffee C Futures

221.95

-3.55 (-1.57%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (7)

Euro Stoxx 50

3,791.45

+1.83 (+0.05%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (3)

Sell (5)

S&P 500

4,290.78

-6.36 (-0.15%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (2)

Sell (7)

DAX

13,837.96

+21.35 (+0.15%)

Summary

Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (2)

Sell (3)

FTSE 100

7,552.40

+43.25 (+0.58%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (10)

Sell (1)

Hang Seng

19,830.52

-210.34 (-1.05%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (9)

Sell (0)

US Small Cap 2000

2,009.20

-11.20 (-0.55%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

IBEX 35

8,499.75

+72.75 (+0.86%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (10)

Sell (1)

BASF SE NA O.N.

44.225

+0.165 (+0.37%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (10)

Sell (1)

Bayer AG NA

54.11

+0.55 (+1.03%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (7)

Allianz SE VNA O.N.

179.50

+0.72 (+0.40%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (10)

Sell (0)

Adidas AG

170.06

-2.88 (-1.67%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (6)

Deutsche Lufthansa AG

6.711

-0.023 (-0.34%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

Siemens AG Class N

111.34

-0.86 (-0.77%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (1)

Sell (8)

Deutsche Bank AG

8.996

+0.054 (+0.60%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (10)

Sell (1)

 EUR/USD1.0164↑ Buy
 GBP/USD1.2064↑ Buy
 USD/JPY134.63↑ Buy
 AUD/USD0.7015↑ Buy
 USD/CAD1.2875↑ Sell
 EUR/JPY136.84↑ Buy
 EUR/CHF0.9656↑ Buy
 Gold1,791.80↑ Buy
 Silver20.152↑ Buy
 Copper3.6325↑ Buy
 Crude Oil WTI89.56↑ Buy
 Brent Oil95.11↑ Buy
 Natural Gas9.227Neutral
 US Coffee C221.95↑ Sell
 Euro Stoxx 503,791.45↑ Sell
 S&P 5004,290.78↑ Sell
 DAX13,837.96Sell
 FTSE 1007,552.40↑ Buy
 Hang Seng19,830.52↑ Buy
 Small Cap 20002,009.20↑ Sell
 IBEX 358,499.75↑ Buy
 BASF44.225↑ Buy
 Bayer54.11↑ Sell
 Allianz179.50↑ Buy
 Adidas170.06↑ Sell
 Lufthansa6.711↑ Sell
 Siemens AG111.34↑ Sell
 Deutsche Bank AG8.996↑ Buy
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,580/ 6,680
(-10/ -10) # 1,639
SJC HCM6,600/ 6,700
(-10/ -10) # 1,659
SJC Hanoi6,600/ 6,702
(-10/ -10) # 1,661
SJC Danang6,600/ 6,702
(-10/ -10) # 1,661
SJC Nhatrang6,600/ 6,702
(-10/ -10) # 1,661
SJC Cantho6,600/ 6,702
(-10/ -10) # 1,661
Cập nhật 16-08-2022 20:42:00
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,775.12-3.36-0.19%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-V25.34025.840
RON 95-III24.66025.150
E5 RON 92-II23.72024.190
DO 0.05S22.90023.350
DO 0,001S-V24.88025.370
Dầu hỏa 2-K23.32023.780
ↂ Giá dầu thô thế giới
WTI$89.04-1.24-1.41%
Brent$94.64-1.68-1.81%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD23.230,0023.540,00
EUR23.145,5524.441,71
GBP27.456,8428.627,78
JPY171,08181,12
KRW15,4318,80
Cập nhật lúc 18:54:08 16/08/2022
Xem bảng tỷ giá hối đoái
adver main right