Harmoney’s Post

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting in August 2024 is set to continue with the current monetary stance. The meeting, chaired by Governor Shaktikanta Das, begins on August 6, with the interest rate decision to be announced on August 8 at around 10 AM. It is expected that the RBI will maintain the benchmark repo rate at 6.5%, marking the ninth consecutive time the rate remains unchanged since February 2023. Key considerations for the RBI: Include addressing ongoing inflation concerns, particularly regarding food prices. Retail inflation increased to 5.08% year-on-year in June from 4.75% in May, driven mainly by food inflation, which makes up nearly 40% of the consumer price basket. Despite this increase, inflation has stayed within the RBI's tolerance range of 2-6% for ten months. In the previous meeting in June 2024, the MPC voted 4-2 to keep the repo rate unchanged at 6.5% and continued its stance of 'withdrawal of accommodation'. The RBI revised its GDP growth forecast for FY25 to 7.2%, up from 7%, while keeping the inflation forecast for FY25 at 4.5%. Upcoming RBI MPC meetings are scheduled for October 7-9, December 4-6, 2024, and February 5-7, 2025.

Bond market recap: 13 November Stay up-to-date with Harmoney’s Daily Newsletter. Here are quick highlights: • Government bond yields rose as traders covered short positions ahead of India's October CPI data release, with the bond market anticipating inflation reaching a 14-month high. The 10-year benchmark bond yield closed at 6.83%, up from 6.82% on Monday. Market turnover rose to ₹415.65 billion from ₹227.85 billion in the previous session. • The call rate closed significantly below RBI's standing deposit facility rate of 6.25% due to low demand for funds amid high surplus liquidity. The one-day call money rate ended at 5.75%, up from 5.50% on Monday, while the weighted average rate remained steady at 6.45%. • US treasury yields rose on fears that Trump's plan might reignite inflation after a lengthy battle to curb pricing pressures following the Covid-19 outbreak. The 10-year benchmark treasury yield rose 12.2 basis points to 4.43%, below last week's 4-month high of 4.479%. Know more: https://lnkd.in/ggSBrEez #Harmoney #HarmoneyNewsletter #MarketTrends

Bond market recap: 13 December Stay up-to-date with Harmoney’s Daily Newsletter. Here are quick highlights: •⁠ ⁠Government bond yields rose on Thursday as traders offloaded holdings ahead of Friday's bond auction, aiming to buy back securities at lower prices. November CPI met expectations and had minimal impact on gilt movements. The 10-year benchmark bond yield ended at 6.74%, up from 6.72% on Wednesday. Market turnover rose to ₹403.25 billion from ₹339.30 billion. •⁠ ⁠The interbank call money rate closed below RBI's standing deposit facility rate of 6.25% on Thursday as banks' demand for funds eased towards the end of the trading session. The one-day call money rate fell to 5.75% from 6.75%. The weighted average call rate also fell to 6.62% from 6.70%. •⁠ ⁠US treasury yields rose to a three-week high as investors considered a higher-than-expected November producer price index. November CPI met expectations, boosting bets of a Federal Reserve interest rate drop next week. The 10-year benchmark note rose 6.3 basis points to 4.334% from 4.271% Wednesday. The 2-year notes gained more than 4 basis points to 4.199%. Know more: https://lnkd.in/dzQzTUYF #Harmoney #HarmoneyNewsletter #MarketTrends

#READ | 🚨 Key Highlights from RBI's Latest Policy Update 🚨 The Reserve Bank of India (RBI) has made some important policy announcements in its latest MPC meeting. Here's a quick overview of the key takeaways: 📉 Repo Rate & Policy Stance: - MPC voted 4-2 to leave the repo rate unchanged at 6.50%. - Neutral policy stance maintained to restore inflation-growth balance. 📊 GDP Growth Forecasts: - FY25 GDP growth forecast revised to 6.6%, down from 7.2%. - FY25 GDP growth forecast for Oct-Dec reduced to 6.8% from 7.4%. - FY25 GDP growth forecast for Jan-Mar lowered to 7.2% from 7.4%. - FY25 GDP growth forecast for Apr-Jun revised to 6.9% from 7.3%. - FY26 Jul-Sept GDP growth pegged at 7.3%. 📈 CPI Inflation Forecasts: - FY25 CPI inflation forecast raised to 4.8% from 4.5%. - Oct-Dec CPI inflation forecast increased to 5.7% from 4.8%. - Jan-Mar CPI inflation forecast adjusted to 4.5% from 4.2%. - Apr-Jun CPI inflation forecast increased to 4.6% from 4.3%. - Jul-Sept 2025 CPI inflation forecast pegged at 4%. 💰 CRR Reduction: - RBI cuts Cash Reserve Ratio (CRR) to 4.00% of NDTL in two equal tranches. - CRR reduction to release ₹1.16 lakh crore of liquidity, effective from Dec 14 and Dec 28. - This cut is consistent with the neutral policy stance. Times Network #RBI #MonetaryPolicy #GDPForecast #Inflation #CRR #IndianEconomy #FinancialMarkets #Economy

A weekly roundup providing a snapshot of the bond market dynamics for the week ended on August 16, 2024. •Bond yields fell following lower-than-expected U.S. producer prices data of Jul 2024, along with an ease in domestic retail inflation for the same month. However, gains were restricted at the end of the week due to a rise in U.S. Treasury yields after strong economic data from the U.S. curtailed expectations of an aggressive rate cut in Sep 2024 by the U.S. Federal Reserve. •Data from the Reserve Bank of India showed that reserve money grew 6.2% on a yearly basis for the week ended Aug 09, 2024, compared to an increase of 5.9% in the same period of the previous year. The currency in circulation grew 5.7% on a yearly basis for the week ended Aug 09, 2024, compared to an increase of 3.7% in the same period of the previous year. •Data from the Reserve Bank of India showed that India's foreign exchange reserves fell to $670.12 billion for the week ended Aug 09, 2024, compared with $674.92 billion a week earlier. #ICRAAnalytics #indiandebtmarket #gsecs #weeklydebtmarketupdate #finance #yields #bondmarkets

Retail Inflation 📖 Definition: It is also known as Consumer Price Index (CPI) inflation, measures the rate at which prices of goods and services for personal use increase over time. 🛍️ 🛒 Components of CPI Includes a basket of goods and services typically purchased by households, covering food, clothing, housing, transportation, and medical care. 🛏️ 📊 Types of CPI ➡️ CPI for Industrial Workers (IW) 💼 ➡️ Agricultural Labourer (AL) 🌾 ➡️ Rural Labourer (RL) 🏡 ➡️ Urban Non-Manual Employees (UNME) 🏙️ 🏢 Compiled By: The Labour Bureau and the National Statistical Office (NSO). 🏢 📅 Base Year: The base year for CPI is 2012, but in 2020, a new series for CPI-IW was introduced with a base year of 2016. 📊 📉 MPC and CP: The Monetary Policy Committee (MPC) uses CPI data as a key measure of inflation to control inflation. 📈 📚 For Prelims: Retail Inflation, Reserve Bank of India, Monetary Policy, GDP 📝 For Mains: Impact of Inflation on the growth and development Source: #TH Relevance: GS III #upsc #ias #current #affairs #news

Read the insightful article "India's August Consumer Price Inflation(CPI) number second lowest in five years" on the SIB Blog. #SouthIndianBank #SIB #InvestinginRelationships #SIBBlog #Blog #Inflation #ConsumerPriceInflation #CPI

Bond market recap: quick highlights from last week and the week ahead. • The 10-year benchmark bond yield fell two basis points week-on-week after the Federal Reserve began its rate-cutting cycle last week. The yields slightly rose as dealers sold stock following robust buying at the auction on Friday. Today, the yields are likely to open flat, with the demand for bonds maturing in more than 10 years likely declining ahead of the monthly gilt swap auction. • Last week, corporate bond yields eased 6-7 basis points across the yield curve after the US Fed's rate cut. Volumes in the secondary market remained low as investors chose to focus on the big queue of primary market issuance. This week, the yields may remain steady across the yield curve, with the volumes likely to stay subdued amid a lack of fresh cues. • The call rate declined below RBI's repo rate of 6.50% on Saturday because of low funds demand from banks. As liquidity tightened following the advance tax outflows last week, the call rate increased to RBI's marginal standing facility rate of 6.75% during the week. Today, the one-call rate is expected to rise as banks' demand for cash increases due to tight liquidity conditions in the financial system. It will likely trade within the 6.20-6.75% range for the day. Read more at: https://lnkd.in/g2dNd5xi #Harmoney #HarmoneyNewsletter #MarketTrends

Inflation remains main concern against rate cuts: RBI policy minutes Full Article Link >>> https://lnkd.in/g3AgpKci NEW DELHI: Inflation continues to remain the main concern for the Reserve Bank of India’s monetary policy committee members before it goes ahead and loosens its stance on key interest rates .As per the Minutes of the latest monetary policy meeting released on Friday, there have been several mentions of uncertainties around inflation. Going ahead, […] . . Latest IND . . . . #trendingnews #newstrending #trendingtopicnews #lifestyle #business #news #healthylifestyle #smallbusiness #supportsmallbusiness #lifestyleblogger #luxurylifestyle #businessowner #businesswoman #smallbusinessowner #businessnews

𝐃𝐚𝐢𝐥𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐒𝐧𝐚𝐩𝐬𝐡𝐨𝐭: Key Financial Insights With our daily financial report, stay on top of the latest market movements Here’s what you need to know today: News RBI-led MPC's new members to face risks to growth amid inflation fight India's wholesale inflation eases to 1.31% in August as fuel prices turn negative Rate cut to be based on long-term inflation trajectory: RBI Governor •          𝐆𝐨𝐯𝐭 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐘𝐢𝐞𝐥𝐝𝐬: Track daily changes in interest rates. •          𝐂𝐃 & 𝐂𝐏 𝐘𝐢𝐞𝐥𝐝𝐬: Stay updated on short-term investment rates. •          𝐓-𝐁𝐢𝐥𝐥 𝐘𝐢𝐞𝐥𝐝𝐬: Insights on short-term borrowing costs. •          𝐅𝐨𝐫𝐞𝐱 𝐌𝐚𝐫𝐤𝐞𝐭: Monitor major currency movements. •          𝐂𝐨𝐦𝐦𝐨𝐝𝐢𝐭𝐲 𝐏𝐫𝐢𝐜𝐞𝐬: Daily changes in Brent Crude, Gold, and Silver •          𝐁𝐨𝐧𝐝 𝐘𝐢𝐞𝐥𝐝𝐬 & 𝐒𝐩𝐫𝐞𝐚𝐝𝐬: Analyze credit risk and opportunities. •          𝐅𝐈𝐈 𝐅𝐥𝐨𝐰𝐬: Gauge market sentiment and foreign investments. 𝑨𝒓𝒆𝒕𝒆 𝑹𝒆𝒔𝒆𝒂𝒓𝒄𝒉 𝑫𝒆𝒔𝒌 – 022 4043 9000 To know the details of today, please read the attached report. #dailyupdate #rbi #ratecuts #inflation #cp #cd #debtmarket #forexnews