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Informist, Thursday, Aug 8, 2024

MUMBAI - Following are the highlights of comments by Reserve Bank of India Governor Shaktikanta Das and other top central bank officials today at a press conference after the Monetary Policy Committee meeting:

SHAKTIKANTA DAS

* Domestic econ growth is resilient

* Inflation has moderated from earlier high levels

* We have still distance to cover to align CPI to 4% aim

* Inflation moderating, pace of disinflation is slow, uneven

* Govt taking steps to deal with supply-side issues
* Interacting with govt on supply-side measures on inflation

* Will await NSO decision on CPI weights

* Monitoring impact of flood situation on inflation
* Impact of flood situation on inflation may be temporary
* See good kharif output on La Nina forecast, reservoir levels
* Financial sector stable, well capitalised balance sheet

* Have enhanced resilience vs spillover from global shocks

* Committed to ensure orderly evolution of financial markets

* Overall US econ growth doing well

* Need to see more data on US employment

* Premature to talk about recession in US

* RBI will be watchful of all domestic, external data

* India has improved resilience against external shocks

* Will finalise new LCR norms after inputs from bks, others
* Banks to decide if deposit rates need to be raised
* Banks to decide deposit rates based on their own needs
* Banks must use branches, innovative pdts to garner deposits

* Deposit-credit divergence may create liquidity mgmt issue
* Not asking banks to go out of way for deposit mobilisation
* Seen substantial improvement in banking governance
* Bks to assess own risk inherent in deposit drive

* Sensitised banks on monitoring irregular transactions
* Don't want to micro-manage bks on retail deposit growth
* It is for bks to take required measures on deposits
* Watchful of all incoming data from banking sector
* As and when required, will act on deposit growth
* Only some lenders are not following norms for top-up loans
* No systemic problem on following norms for top-up loans
* Asking bks to proactively monitor end-use of top-up loans
* Dealing with some entities bilaterally on top-up loan issue

* No ready data on mule accounts
* Bks have systems to monitor transaction of suspect accounts

* Already discussed F&O trading with SEBI
* Not like all savings are going into F&O trade
* SEBI to take apt action regarding F&O trading volume

* FPI sentiment on India is very high
* Global investor confidence on India is very positive

MICHAEL PATRA
* Neutral interest rate reflects better econ performance
* FAR bonds FPI holding only 4.8% of outstanding
* Major part of investors interest in 5-, 10-yr FAR papers
* 90% of FAR holding in 5 to 10 year bonds
* Focusing FPI holding in 5-, 10-yr FAR bonds to up liquidity
* To review OIS limit for foreigners
* Household financial savings being drawn down to normal levels
* Shift happening from fincl savings to physical savings
* Seeing return of normalcy in household savings

* See much better balance in fincl liquidity conditions
* Middling the call rate in LAF corridor
* Call rate should ordinarily be in middle of LAF corridor
* Call rate is our operating target
* Call rate reflects monetory policy stance
 

SWAMINATHAN J.
* On IT outage: Bks should have alternatives
* Premature to talk of changing unsecured loan norms
* Will watch data on unsecured loan growth

End

Compiled by Vinod Bhovad

Filed by Vandana Hingorani

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