What is 'Monetary Policy'

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• India a better long-term story despite high valuations: Geoff DennisTo get the consumer going again, you do not just need a string of monetary policy actions and therefore I am going to remain very sceptical about this rebound in equities until some more significant actions are taken on the fiscal side.
• South Korea's central bank raises rates in bid to boost economyThe bank raised the rate by a quarter percentage point in August 2021 over concerns about inflation and soaring household debt, driven in part by skyrocketing house prices, and then froze rates for over three years.
• If rate cut happens in Feb, it will come with significant downward revision of GDP: Union Bank reportThe Reserve Bank of India (RBI) holds the repo rate unchanged, shifting its policy stance to neutral, signaling ongoing inflation concerns. The UBI report suggests no rate cut in December due to rising inflation, with a possible rate cut and GDP forecast revision in Q4-FY25.
• F&O Radar | Deploy this strategy in Nifty to make potential gains from a rangeNifty closed lower on Wednesday, erasing earlier gains after the RBI shifted its liquidity stance to 'neutral,' signaling a potential rate cut. The index ended down 0.12% at 24,981.9. Jay Thakkar of ICICI Securities noted that the PCR remains oversold, suggesting further bounce-back potential. However, the MACD indicates a sideways to negative trend. Immediate targets are 25,300 for resistance and 24,818 for support
• One member of MPC voted for a rate cut in October itselfOf the three new external members, Nagesh Kumar, director and chief executive, Institute for Studies in Industrial Development, voted for a cut, the central bank said.
• 'Substantial majority' of Fed favoured large cut in SeptSupporters of the half-point cut "observed that such a recalibration of the stance of monetary policy would begin to bring it into better alignment with recent indicators of inflation and the labour market", said the minutes of the September 17-18 session, at which the Fed lowered the benchmark policy rate to a range of 4.75% to 5.00% from the 5.25% to 5.50% range it had maintained since July of 2023. Others noted there had been a "plausible case" to have cut rates at the July meeting and the data since then had only buttressed the case for easier policy.
• RBI signals openness to lower interest rates, but cautious approach prevailsThe RBI shows openness to interest rate cuts but remains cautious due to persistent food inflation and geopolitical risks. With the policy stance changed to neutral, a cut could occur as early as December. Calibrated quantitative easing aims to reduce imported financial market volatility.
• Ahead of Market: 10 things that will decide stock action on ThursdayIndian indices closed lower on Wednesday despite earlier gains, following the central bank's policy easing. Nifty 50 closed at 24,982, Sensex at 81,467. Analysts suggest a short-term pullback before further upside.
• 10-year government security yields drop to 6.73% after RBI's neutral stanceThe inclusion of Indian debt in the FTSE Russell Emerging Market Government Bond Index also aided the yields. This inclusion will add to the hefty foreign inflows that domestic debt markets have received over the past year.
• India's short-term rates curve inverts further as rate cuts loomIndia's ultra-short-term rates have dipped below the central bank's benchmark interest rate due to an easing monetary policy stance and added liquidity. The Reserve Bank of India recently sold 91-day Treasury bills at lower yields, prompting expectations of imminent rate cuts amidst ample banking system liquidity.