"Following that, we expect two more hikes of 25 bps each next fiscal, which will take repo rate to 4.75 per cent by March 2023." "Summing up, we expect the MPC to begin raising the repo rate from its next review meeting in April." "Meanwhile, we believe firms facing sustained cost pressure would pass it on to a great extent to consumers next fiscal as demand strengthens."Īs per Crisil Research, a modest reduction is expected in CPI inflation from 5.5 per cent this fiscal to 5.2 per cent in the next. This is expected to be partially offset by lower excise duties on fuel compared with last year."
"However, it faces upside risks from rising crude oil prices. Interestingly, peak tightening in 2018 had coincided with repo rate hikes by the RBI.įurthermore, it cited that primary target of RBI, CPI inflation, remains within its comfort band of 2-6 per cent. The projected number of hikes in 2022 are also much higher than seen at the peak of Fed tightening after the aGlobal Financial Crisis'." "The Fed will have taken seven years after the 'Global Financial Crisis' to raise its funds rate for the first time, and two years after Covid-19 pandemic began. "Second, the US Federal Reserve is expected to raise its policy rate at the fastest pace seen after the 'Global Financial Crisis'." In the past, the RBI has raised rates when crude oil prices rose, such as in 2010, 20. "Elevated crude oil prices have an adverse impact on India's macros such as the current account deficit, inflation, GDP growth, and in some cases, the fiscal deficit." Moreover, Crisil Research expects Brent crude prices to average $80-85 in 2022, the highest since 2015. First, Brent crude prices have jumped from $74.3 per barrel on average in December 2021 to over $90 now," it said. "Risks have increased from the external front. Likewise, the reverse repo rate was kept unchanged at 3.35 per cent, and the marginal standing facility (MSF) rate and the 'Bank Rate' at 4.25 per cent. The MPC of the central bank maintained the repo rate, or short-term lending rate, for commercial banks, at 4 per cent. Notably, the Reserve Bank of India's Monetary Policy Committee (MPC) on February 10, retained key short-term lending rates during the sixth and final monetary policy review of FY22.īesides, the growth-oriented accommodative stance was also retained to give a push to economic activity. (BRBNMPL) and transferred to Asset Development Fund (ADF).The RBI's MPC is expected to begin raising the key lending rate from its next review meeting in April, Crisil Research said. It did not transfer any amount to Contingency Fund (CF).Ī provision of Rs 1,000 crore was made for additional capital contribution in Bharatiya Reserve Bank Note Mudran Representing a marginal decline of 0.03 percent.
The bank transferred an overall surplus of Rs 65,876 crore during the year as against Rs 65,896 crore in 2014-15, Percent primarily due to provision made for reimbursing service tax on agency commission paid to agency banks. It said, while income for the year 2015-16 increased marginally by 2.04 percent, expenditure increased by 12.23 "The increase on the asset side was due to increase in foreign investments and domestic investments by 7.98 percent and 35.64 percent, respectively, and on the liability side due to increase in notes in circulation and other liabilities and provisions by 15.92 percent and 14.77 perdocent, respectively," RBI said in its annual report for 2015-16 released on Monday.ĭuring the period, domestic assets constituted 24.59 percent while the foreign currency assets and gold (including gold held in the country) constituted 75.41 percent of total assets as against 21.86 percent and 78.14 percent, respectively, as on June 30, 2015.
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