RBI holds repo rate at 6% in first policy review of fiscal

Sensex soars by 100 points

The BSE Sensex rose nearly 100 points in the opening trade today

That level is the lowest since November 2010.

While keeping the benchmark repurchase or repo rate unchanged at 6 per cent and reverse repo at 5.75 per cent for the fourth time straight, the 6-member MPC retained the "neutral" stance. In which five of six members voted for a hold, while one wanted a hike in the repo rate.

"We expect the policy guidance and tone to be balanced and similar to that in February", said A. Prasanna, chief economist at ICICI Securities Primary Dealership, referring to the RBI's projection that inflation will moderate from October onward but with upside risks.

The more authoritarian regimes make it harder for people to use their own money, the harder people will work to get around those limitations - and, in doing so, create means of financial empowerment that can not be centrally controlled.

The BSE Sensex rose almost 100 points in opening trade today ahead of Reserve Bank of India's monetary policy review that begins today. Eight infrastructure sectors grew by 5.3 percent in February, mainly helped by a robust performance of refinery products, fertiliser and cement segments.The eight infrastructure sectors - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - had grew by just 0.6 percent in February 2017.

"They will explore the feasibility and desirability of issuing a digital currency by the central bank", he said.

The 10-year benchmark bond yield fell to 7.13 percent, the lowest since January 9, and compared with its previous close of 7.29 percent, while the rupee was trading at 64.9650 to the dollar from 65.15 at Wednesday's close.

The state-run bank index was trading 2.1 percent higher by 0559 GMT, while the overall bank index rose 1.2 percent.

In its first bi-monthly monetary policy review meeting of FY19, the monetary policy committee (MPC) also maintain-ed a bullish outlook on growth citing strong revi-val in investment activity.

But many economists doubt whether that pace can be sustained.

Inflation signs refuse to ease down. In mid-September, Google launched its UPI-based payment service Tez, and by November it was reported that the search giant had close to 67 percent market share. The messaging on the economy could have been clearer and more consistent.

"This seems to be the end of the road for cryptocurrencies in India, at least till the time a definitive set of rules governing them have been put in place", he said.

"However (the) MPC looks ahead".

He said that several uncertainties continue to surround "the baseline inflation path".

Latest News