RBI Policy

RBI should definitely cut interest rates, says Commerce Minister Piyush Goyal

Commerce Minister Piyush Goyal called for the Reserve Bank of India (RBI) to cut interest rates, arguing that food inflation should not be the sole factor in such decisions. He expressed his personal view, noting that inflation is expected to decline by December. Goyal also urged investors to take a long-term perspective, following recent Foreign Institutional Investor (FII) selling trends.

RBI Monetary Policy Meeting Highlights: Inflation expected to remain elevated during Sept and Oct; RBI opens the door for potential rate cuts

RBI MPC Meeting Highlights: The Reserve Bank of India (RBI) is laying the groundwork for its first interest rate cut in four years, showing increased confidence that inflation will ease in the coming months. This shift led to gains in both bonds and stocks. On Wednesday, the Monetary Policy Committee (MPC) voted 5-1 to maintain the benchmark repo rate at 6.5%, as widely expected, but shifted its stance to 'neutral,' signaling that a rate cut could be on the horizon. Nagesh Kumar, one of the new external members of the committee, voted in favor of an immediate reduction. Governor Shaktikanta Das expressed optimism that food prices, which account for nearly half of the consumer price index, would likely soften in the months ahead, improving the inflation outlook. However, he emphasized the need for caution, stating that the RBI has worked hard to bring inflation under control and must remain vigilant. "It is with a lot of effort that the inflation horse has been brought to the stable," Das said in a televised address. "We have to be very careful about opening the gate, as the horse may simply bolt again." Following the announcement, bonds saw their biggest rise since February, with the yield on the 10-year government bond dropping by five basis points to 6.75%. The rupee remained stable, while stocks extended their gains. While the RBI remains confident in aligning inflation with its 4% target, Das warned that "there is no room for complacency." His deputy, Michael Patra, added that adverse weather conditions and geopolitical conflicts pose significant risks to inflation. "Given the substantial risks ahead, it's not appropriate to specify the timing of a rate cut," Das added. Economists believe the central bank will monitor inflation trends and geopolitical uncertainties in the coming months before making any decisions on lowering borrowing costs.

Higher rates, increasing credit costs to temper profits for micro finance cos says S&P

Rising delinquencies in India's microfinance sector will increase credit costs above 5% this fiscal, impacting profitability, S&P analysts say. Regulatory actions and higher borrowing costs pose risks, while expected policy rates reduction may offer some relief. RBI bans on certain NBFCs aim to improve compliance.

RBI monetary policy meeting starts: The script isn't changing?

The Reserve Bank of India (RBI) begins its three-day monetary policy meeting amid global economic uncertainties. Analysts believe the repo rate will remain unchanged for a 10th consecutive time at 6.50% as the central bank balances inflation control with economic growth.

RBI MPC minutes indicate dichotomy: SBI Ecowrap report

The SBI Ecowrap report on MPC meetings highlights divergent views among committee members on policy rates, with debate on inflation control versus economic flexibility. A proposed amendment seeks to shorten the release timeline for meeting minutes from 14 to 7 days for timely communication.

RBI: Looking through the liquidity management tea leaves

The RBI's October policy shift to a neutral stance was reflected in its liquidity management since July 2024, with interbank liquidity surplus averaging INR1.2tn. RBI refrained from strong liquidity absorption, signaling comfort with current conditions as government expenditure rose and inflation pressures moderated.

RBI's policy on expected lines, softening of stance a front-loaded move: Bankers

The Reserve Bank of India maintains rates and changes its policy stance to 'neutral', indicating confidence in managing inflation and promoting robust growth. Bankers expect future rate cuts depending on the inflation trend. Enhanced UPI limits and creation of a climate risk system are also highlighted.

Are variable pay, incentives driving risky growth at NBFCs?

As India's NBFC sector grows rapidly, driving financial inclusion, some of these companies are taking risky paths to growth through exuberant lending and pushing credit growth through targets to employees.

RBI says inflation, growth to ease in fiscal 2026

The Reserve Bank of India forecasts a reduction in consumer price inflation to 4.1% by March 2026, down from 4.5% this fiscal year, contingent on a normal monsoon and stable policy environment. Economic growth is expected to ease slightly to 7.1%, supported by strong domestic demand and government capex.

RBI keeps repo rate unchanged, shifts to neutral policy stance

The RBI maintained the repo rate at 6.5% for the 10th consecutive policy review but shifted the monetary policy stance to 'neutral' from 'withdrawal of accommodation'. This allows flexibility in future rate decisions as inflation remains within the target range. CPI inflation forecasts remain at 4.5%, with GDP growth at 7.2% for FY25.

RBI MPC meet: UPI Lite per transaction limit hiked to Rs 1,000; UPI Lite wallet limit hiked to Rs 5,000

RBI MPC on UPI Limit: The UPI Lite per transaction limit has been hiked to Rs 1,000 from Rs 500. The UPI Lite wallet limit has hiked to Rs 5,000 from Rs 2,000. The RBI has also hiked UPI 123PAY per transaction limit to Rs 10,000 from Rs 5,000. The announcements were made at the RBI Monetary Policy meeting today.

Lower EMIs for home loan borrowers soon: RBI likely to cut repo rate up to 50 bps by March 2025 despite no change now

RBI Repo Rate: Home loan borrowers may benefit from a drop in EMIs soon as RBI is expected to cut interest rates, following global trends. Higher global interest rates initially forced RBI to raise rates, but with inflation cooling, reductions are likely. Borrowers should consider switching to external benchmark-linked lending rates for maximum benefit.

RBI MPC shifts gear to 'neutral' while retaining repo rate at 6.5%; A look at inflation, GDP targets

Repo Rate: The RBI's Monetary Policy Committee maintained the repo rate at 6.5% due to robust domestic growth and concerns over inflation despite a slight dip in Q1 FY2025 growth. The stance shifted to 'neutral' focusing on growth, cautious of potential geopolitical risks impacting inflation.

RBI MPC Meeting at a Glance: Your one-stop guide for all key decisions

The RBI's MPC, led by Governor Shaktikanta Das, has decided to maintain the current interest rates, keeping the repo rate at 6.5%, the SDF at 6.25%, and the MSF at 6.75%. The committee's stance is now neutral, focusing on inflation trends and maintaining GDP growth projection for FY25 at 7.2%.

Fed made FIIs spend Rs 27,000 crore on bank stocks but China forcing a U-turn now

FIIs invested Rs 27,000 crore in Indian bank stocks after the US Fed's rate cut. However, they reversed their investments due to China's quantitative easing. This led to a drop in Nifty Bank index by 5% in early October. Investors are watching for RBI's monetary policy decision on October 9.

Nifty has strong support at 24,800: Technical Analysts

On the upside, immediate resistance is expected at 25,250. Stocks such as Coforge, Balrampur Chini, JK Lakshmi Cement, Divi’s Lab, Torrent Pharma, Titan, Ipca Labs, and Lal PathLabs could attract support-based buying, said analysts.

RBI's policy review: Status-quo on interest rate likely amid inflation concerns and Middle East crisis, say experts

The RBI is expected to keep interest rates unchanged in its upcoming policy review due to ongoing inflation concerns and uncertainties in the Middle East. Experts suggest any easing of rates could happen in December. The reconstituted Monetary Policy Committee will hold its first meeting next week to discuss and decide the course.

RBI unlikely to cut rate as India's growth is higher than potential output: SBI Report

The Reserve Bank of India (RBI) is unlikely to cut interest rates in its upcoming meeting, given India's strong economic growth and the importance of credit to deposit growth in the banking system. Despite global economic conditions, the RBI is expected to focus on domestic factors.

Here's why Abheek Barua is disappointed with RBI policy outcome

And just as an early pivot or a premature pivot can cause problems down the road, the inability to pivot or create room for a pivot could lead to problems later on. Again, I mean, this is just not my words, but this is what the dissent within the MPC is about.

To cut or not to cut: Is there a concerted effort by Asian central banks, RBI included, to keep the monetary guard up?

The debate over whether the Reserve Bank of India (RBI) should cut interest rates has intensified. The RBI has held rates steady for eight consecutive meetings, with dissenting members warning of potential repercussions from inaction. The core issue is whether the RBI should prioritize combating food inflation by maintaining high rates or consider rate cuts by focusing on non-food inflation and economic stability.

Final guidelines on project loans likely in 2-3 months: RBI official

The final guidelines for project loans are expected to be announced in the next two to three months, according to a senior RBI official. The official added that the Expected Credit Loss-based provisioning norms are also in advanced stages of discussion. Up to 60 responses have been received on the draft guidelines, which are currently being reviewed.

Now your cheques will be cleared within few hours: Here's why

The Reserve Bank of India has stated that cheque clearance will be expedited to within a few hours. Currently, the process takes approximately two to three days. This announcement was made by the governor of the Reserve Bank of India during the Monetary Policy Committee meeting. This expedited cheque payment method will benefit both the payer and the payee. This change is set to significantly reduce the time taken for cheque clearance and bring it closer to the rapid transfer speeds offered by National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS).Now your cheques will be cleared within few hours: Here's why

RBI leaves interest rates, stance unchanged for ninth straight time

The RBI kept interest rates unchanged for the ninth straight meeting due to inflation worries from high food prices. Economic growth outlook remained strong, but the central bank emphasized vigilance on inflation. The policy decision caused a decline in stock markets, highlighting ongoing concerns about inflation.

Sensex falls 300 pts, Nifty below 24,200 as RBI keeps repo rate unchanged

Following the RBI's decision to keep interest rates unchanged and maintain the withdrawal of accommodation stance, Sensex and Nifty saw declines. RBI Governor Shaktikanta Das noted market alignment with RBI policies. Despite steady inflation and GDP growth forecasts, specific stocks like Infosys and Apollo Tyres experienced notable losses. Investors remain cautious amid global economic concerns.

RBI's tighter liquidity norms credit positive for banks: Moody's

Moody's views the Reserve Bank of India's draft guidelines on enhancing banks' liquidity management as credit positive, despite a projected 15 percentage point drop in banks' liquidity coverage ratios (LCR). The new guidelines, which require banks to allocate an additional 5% reduction in the stability of retail deposits with internet and mobile banking access, are expected to improve banks' resilience against unexpected deposit outflows.

Expect repo rate cut only in October RBI policy meeting: SBI Research

The report, authored by Soumya Kanti Ghosh, SBI's Group Chief Economic Adviser, expects first repo rate cut in October meeting. The repo rate is the rate of interest at which the RBI lends to other banks.

RBI policy on expected lines, upgrading GDP growth estimate reposes confidence: Bankers

Bankers welcomed the Reserve Bank of India's decision to maintain interest rates, as it was in line with expectations, with an upward revision of the growth estimate. The move, including the unchanged repo rate, was seen as positive for the economy. The revised GDP growth forecast for FY25 instilled confidence in the central bank's outlook. Industry leaders praised the regulatory measures and highlighted the importance of collaboration for financial sector growth.

GIFT Nifty trades on a muted note; here's the trading setup for today's session

GIFT Nifty: Domestic equities rose for a second day as investors analyzed Lok Sabha 2024 elections outcome. Focus on government formation, ECB meeting today, and RBI policy tomorrow.

GDP likely expanded 6.8% in Q4; FY24 print may hit 7.8%

The strong March quarter print could lift overall gross domestic product (GDP) growth for the full fiscal year to 7.8% against 7.6% assessed in the government's first advance estimates released in February. The International Monetary Fund (IMF) has also forecast 7.8% growth for FY24. The government will release fourth-quarter growth numbers and provisional GDP data for FY24 on May 31.

As Modi 3.0 begins, where the economy stands, where it's headed

Narendra Modi is set to begin his third term as PM with a full-strength NDA team, amidst optimism for India's economic future. RBI Governor Shantikanta Das highlighted the country's robust economic growth, strong manufacturing sector, recovering rural demand, and promising investment activity. India's external sector remains resilient, with positive growth prospects ahead.

Sensex hits fresh all-time high, surges 1,619 points; rate-sensitive stocks surge up to 9% post RBI policy decision

The market capitalisation of all listed companies on BSE surged by Rs 7.38 lakh crore to Rs 423.27 lakh crore. Post RBI policy decision, realty indices surged up to 9.5%, with Sunteck Realty, Sobha, Brigade, and Lodha rising between 3% and 9.5%. Nifty Bank stocks such as Bandhan Bank, SBI, Axis Bank, AU Small Finance Bank, and Kotak Bank rose by 1-2%.

RBI following the US Fed? Guv Das says "we play according to local weather, pitch conditions"

The Reserve Bank of India (RBI) has emphasized its independence from global influences and prioritizing domestic economic conditions over distant horizons. The RBI's actions are primarily determined by domestic growth-inflation conditions and the outlook. India has maintained its stance of 'withdrawal of accommodation' since February 2023 and has not changed its stance of 'withdrawal of accommodation' since February 2023.

RBI's First Monetary Policy Announcement Post Lok Sabha Election Results 2024 | Live

The RBI-led Monetary Policy Committee (MPC) is expected to maintain the repo rate at 6.5 per cent, focusing on withdrawing accommodation. The central bank is expected to keep the key lending rate unchanged for the eighth consecutive time. Persistent inflation in food and beverages is a significant challenge. Provisional data shows India's GDP grew by 7.8 per cent in January-March, lifting the full-year growth for FY24 to 8.2 per cent. Watch RBI's First Monetary Policy Announcement Post Lok Sabha Election Results 2024.RBI's First Monetary Policy Announcement Post Lok Sabha Election Results 2024 | Live

Sensex climbs 300 points ahead of RBI MPC decision, Nifty above 22,900

The domestic benchmark equity indices, Nifty50 and Sensex, started the day with gains on Friday, as investors anticipated the Reserve Bank of India's policy meeting. It is widely anticipated that the RBI will maintain interest rates unchanged during the meeting.

Beyond elections, track these 6 factors also to understand Nifty movement this week

Investors would react to not just the exit poll predictions but also India's Q4 GDP numbers which, at 7.8%, was much higher than the Street estimates. Global markets will likely react to the outcome of the PCE data in the US, the Fed's preferred gauge of inflation.

SBI MD on RBI policy, LCR framework & more

AK Tewari discusses the importance of adapting LCR monitoring to digital times to prevent rapid bank runs due to the instant withdrawal capability, emphasizing the critical role of deposit gathering in the banking sector amid ongoing transformations. Tiwari also says: "For all banks, especially the deposit gathering and focus will be the key thing for the next several quarters."

RBI Policy: What pause means to mutual fund investors

Higher interest rates are considered bad for mutual fund investors, especially debt fund investors. Bond yields and prices have an inverse relationship, which means when the interest rate or bond yields go up, the net asset value of debt funds goes down

What guidance to expect from first MPC of new financial year

The monetary policy review meeting is expected to consider various factors including domestic stability, global rate trends, and demand-supply dynamics, shaping the outlook for the financial year.

RBI Policy Rate: No tango with repo, yet RBI moves ease rates

The Reserve Bank of India (RBI) has indirectly eased policy rates through consistent liquidity injections, leading to a decline in the weighted average call rate (WACR) towards the benchmark repo rate. This trend reflects increased confidence in liquidity management strategies, supported by government spending and proactive RBI operations. Analysts suggest a shift towards containing inflation while maintaining stable borrowing costs.

Sensex, Nifty end at record closing high ahead of RBI policy decision

​The 30-share BSE benchmark Sensex surged 351 points or 0.47% to settle at 74,228. The broader NSE Nifty gained 80 points or 0.36% to end at 22,515. High-weightage financials rose 0.8%, led by HDFC Bank, which gained 3% and hit its highest level since January 17, after posting sequential growth in deposits in the March quarter.

Fed there done that: Banks see delay in rate cuts by RBI, too

The US Federal Reserve's potential delay in cutting rates may impact the Reserve Bank of India's decision on beginning its rate easing cycle. Factors such as strong economic growth, tensions in West Asia, and inflation risks could lead to a delay in rate cuts. Economists anticipate a possible delay in RBI's rate cuts, with expectations shifting to October 2024 for any easing to begin. India's robust economic performance and inflation close to the RBI target suggest a need for caution in monetary policy decisions.

RBI's policy will create stability in financial market and growth for Indian economy: Nilesh Shah

Nilesh Shah from Kotak AMC discusses how RBI's policy aims for stability, trust, and growth in the financial market. The equity market may not be concerned about food inflation, but the focus is on the monsoon. Shah says: For the equity market, the biggest worry will be complacency. We are trading at a valuation which optimistically discounts many events -- election, Fed pivot, earnings growth – in a very positive manner.

Realty stocks jump over 7% after RBI MPC leaves repo rate unchanged

The policy was a non-event for other rate-sensitive sectors like banks and auto. Nifty Bank was up by 0.40% at 48,242,on account of gains in HDFC Bank.

RBI maintains status quo, keeps repo rate unchanged at 6.5 percent for 7th consecutive time

Not belying the expectations of senior economists, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) retained the repo rate at 6.50 per cent. The repo rate is the rate at which the RBI lends to commercial banks. Announcing the MPC majority decision, RBI Governor Shaktikanta Das said on Friday that the repo rate has been retained at 6.5 per cent. Consequently, the Standing Deposit Rate (SDF) will be 6.25 per cent, and Marginal Standing Facility and the Bank Rate will be 6.75 per cent, Das said.RBI maintains status quo, keeps repo rate unchanged at 6.5 percent for 7th consecutive time

RBI MPC keeps repo rate unchanged at 6.5 per cent for the 7th time in a row; GDP, inflation forecast retained

The RBI-led MPC kept the repo rate steady at 6.5 per cent for the seventh time, confirmed RBI governor Shaktikanta Das. The committee also maintained its 'withdrawal of accommodation' stance while concentrating on liquidity management to control inflation.

Sensex falls nearly 300 points, slips below 74K ahead of RBI policy outcome

Indian blue-chip indices opened lower due to IT, metal, and auto stocks before RBI's monetary policy. Tech Mahindra, JSW Steel, L&T, and others showed mixed performance.

RBI Monetary Policy 2024 Highlights: RBI holds rate at 6.5%, looking for inflation "elephant" to vanish

RBI MPC Meet 2024 Updates: RBI MPC decided to keep policy rate unchanged for the seventh time in a row though it remains vigilant towards upside risks to food inflation. The rate increase cycle was paused in April last year after six consecutive rate hikes aggregating to 250 basis points since May 2022. It is the first bi-monthly monetary policy of 2024-25. A total of six MPC meetings are scheduled for the fiscal year beginning April 1, 2024. RBI retained inflation projection at 4.5 per cent for the current financial year, lower than 5.4 per cent in the last fiscal. Assuming a normal monsoon this year, CPI (consumer price index-based) inflation for the current year is projected at 4.5 per cent, with Q1 at 4.9 per cent, Q2 at 3.8 per cent, Q3 at 4.6 per cent, and Q4 at 4.5 per cent. Reserve Bank Governor Shaktikanta Das also stressed on the need to remain vigilant on food prices, given the forecast of higher temperatures between April-June. He also said that the impact of reduction in fuel prices on inflation will deepen in the coming months. Das, however, said the elephant (inflation) seems to have gone for a walk and RBI wants it to remain in the forest. The central government has tasked the Reserve Bank of India (RBI) to ensure that the Consumer Price Index (CPI) based inflation remains at 4 per cent, with a margin of 2 per cent on either side. The retail inflation was 5.1 per cent in February. March inflation print is scheduled to be released next week.

RBI policy, FII flows among 10 factors that will steer D-Street this week

The Reserve Bank of India's rate-setting committee will be meeting this week to announce policy rates and also give its commentary on the economy and inflation. D-Street is expected to track this bimonthly event.

RBI meet starts today; panel likely to stay put on rates as CPI inflation beyond comfort zone

RBI's MPC is expected to maintain 6.5% repo rate amid inflation above 4%. Shift to 'neutral' stance is possible. GDP growth strong, rate cuts unlikely.

PM Modi urges RBI to ponder over new proposals till Elections: After swearing-in ceremony…

On Monday, 1st April, Prime Minister Narendra Modi spoke at the commemoration ceremony of the Reserve Bank of India's 90th anniversary. He said the RBI has 100 days to ponder over new govt proposals.PM Modi urges RBI to ponder over new proposals till Elections: After swearing-in ceremony…

RBI Policy Decision: Repo rate left unchanged at 6.5%; Sensex, Nifty slide

Despite the monetary policy action being on expected lines, the equity market tumbled. Sensex lost over 700 points while Nifty slipped below the 21,750 mark. Unlike in the previous meeting, the decision to leave rates unchanged this time was favoured by 5 of the 6-member MPC panel.

India benchmark bond yield briefly hits 2-month high, no surprise in RBI policy

The yield on the benchmark 10-year was at 7.1069% as of 11:10 a.m. IST, after closing at 7.0934% on Thursday. It had hit 7.1217%, the highest since Feb. 14, after the policy decision.

Mutual fund managers decode RBI Policy

"As December is generally a sluggish month, market yields may not move much either side. We expect 10Y G-Sec yield to trade in a range of 7.15%-7.25% with a downward bias," says Avnish Jain, Head- Fixed Income, Canara Robeco Mutual Fund.

Strong Q3 growth may push likely rate cuts to October

The stronger than expected real GDP growth in the third quarter may prompt RBI to continue the status quo on policy rate. Economists believe the easing cycle may not begin before October. Rate cuts are unlikely, but RBI's communication on liquidity is important.

RBI’s rate dissenter says officials too focused on inflation

Jayanth Varma, the dissenting member of the Reserve Bank of India's policy committee, argued that high interest rates impede investments and called for a shift in the policy stance. Shashanka Bhide emphasised the importance of focusing on the inflation target for supporting growth.

Paytm bank RBI Ban: Indian fintech is fast, furious — and fraudulent?

The Reserve Bank of India has taken regulatory action against Paytm and Visa Inc., and more nonbank intermediaries may be targeted. The growth of neo-banking in India has increased the risk of fraud. KYC regulations and digital payments face challenges, and nodal accounts are used for real-time processing.

RBI policy on stability: Will not wait for house to catch fire

The Reserve Bank of India (RBI) has defended its recent regulatory measures for banks and non-banking finance companies (NBFCs), emphasizing its commitment to using prudential tools to safeguard financial stability. Governor Shaktikanta Das stated that the central bank will not wait for problems to escalate, likening it to waiting for a house to catch fire before taking action.

What should be the takeaways from today's RBI policy commentary? AK Tewari answers

However, the growth has also been good. So in that sense, it is going well. But it is the role of the governor to actually always caution the market that, yes, things are good, but keep watch out and we will keep watching and if warranted, we will take action. So that is the sense I got.

Retail inflation eases in January; is there a rate cut coming?

Retail inflation in India eased to 5.10% in January, down from 5.69% in December. Inflation rates in rural and urban areas also decreased. While the retail inflation is within the RBI's comfort level, it remains above the ideal 4% scenario. Analysts believe that the RBI may hold interest rates steady until at least the June policy review, but if the trajectory persists, rate cuts may be implemented. The arrival of early harvest and a favorable base effect are expected to alleviate price pressures.

Data vacuum an opportunity for time correction in Nifty: Anand James

“But our modest objectives of 22240-22450/550 continue to be in play though, along with an optimistic target of 22800-23000. But any prospects of potential delay in the onset of rate cuts, could jolt the ride, but may not be enough to trigger a collapse per se,” he says.

YES Bank shares jump 32% in 1 week. What should traders do?

“The recent earnings season brought a mixed bag of results, creating a tug-of-war between the bulls and the bears in the market. For a decisive move, the index needs to close above the 22,000 mark, potentially triggering short-covering rallies towards 22,600/23,000 levels.”

No US Fed effect, domestic factors to guide RBI policy

The latest US Federal Reserve's statement, signalling three rate cuts next year, is unlikely to change interest rate trajectory in India with the monetary policy committee focussing on domestic factors but could nudge the central bank to revise its stance, say economists.

Don't expect rate cuts before August monetary policy: Siddhartha Sanyal

Well, on the growth front, one would have to give the RBI the benefit of doubt because the projections they have done of late have actually turned out to be true more often than not and there had been some upside surprise on growth numbers, at least at the headline level.

Bank & other rate-sensitive stocks fall up to 8% post RBI policy decision

The RBI on Thursday left the repo rate unchanged at 6.50% following the conclusion of its three-day monetary policy meeting. This is the sixth consecutive time the central bank has left policy rates untouched and the longest pause in rates since 2008 in a rising interest rate environment.

Monetary Policy Statement by Shaktikanta Das, Governor of the Reserve Bank of India (RBI)

Synopsis: Reserve Bank Governor Shaktikanta Das will announce the bi-monthly policy on Thursday, February 8. The announcement is expected to maintain a status quo on the key interest rate due to inflation remaining near the upper tolerance level of 6%. Although retail inflation has declined since reaching a peak of 7.44% in July 2023, it remains high at 5.69% in December 2023. Experts anticipate that the central bank will not change the repo rate for the sixth time in a row, which currently stands at 6.5%, mainly due to concerns over inflation. The government has mandated the central bank to ensure that the retail inflation based on the Consumer Price Index (CPI) remains at 4%, with a margin of 2% on either side. The MPC, led by Governor Das, is responsible for deciding the policy repo rate to achieve the inflation target while keeping in mind the objective of growth.Monetary Policy Statement by Shaktikanta Das, Governor of the Reserve Bank of India (RBI)

RBI Monetary Policy at a Glance: Here's your quick guide to know all about MPC policy

The Reserve Bank of India's Governor-led Monetary Policy Committee (MPC) concluded its recent meeting, maintaining the repo rate at 6.5%. This decision comes amidst concerns over inflation, with retail inflation remaining near the upper end of the central bank's comfort zone. Key highlights include the forecasted GDP growth rate of 7% for FY25, the projection of CPI inflation at 4.5% for the same period, and the decision to keep inflation forecast unchanged at 5.4% for the fiscal year.

Key takeaways for fintechs from RBI policy meet; ETtech Deals Digest

The Reserve Bank of India has raised payment limits for UPI transactions in hospitals and educational institutions, among a clutch of other measures for the fintech sector, at its monetary policy meeting today. This and more in today’s ETtech Top 5.

RBI allows reversal of liquidity facilities under SDF and MSF even on weekends, holidays

The Reserve Bank of India (RBI) has adjusted liquidity tools, the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF), allowing reversal of facilities on weekends and holidays from December 30. The move aims to improve liquidity management amid high utilization by banks. The RBI maintained the repo rate at 6.5% Governor Shaktikanta Das mentioned that deficit liquidity was due to festive season expenses but anticipates easing conditions with increased government spending. The RBI remains agile in liquidity management amid evolving economic dynamics, the governor said.

Monetary policy: RBI leaves inflation projection for FY24 unchanged at 5.4% amid food price concerns

RBI Monetary Policy Committee: The Reserve Bank of India left the inflation aim unchanged at 5.4%. In the August policy, the RBI had raised its FY24 inflation forecast to 5.4% from 5.1%.

RBI Policy: Best investment strategy for mutual fund investors

The Reserve Bank of India has been holding policy rates since February this year. The apex bank had raised policy rates by 2.5% before the pause, starting from May 2022, to contain the inflationary pressure in the economy.

Will bears return to D-Street after RBI policy verdict? Here's what trends suggest

But a sense of fatigue among Dalal Street bulls was felt on Wednesday after Nifty50 dropped almost 100 points from its lifetime high-level intraday.

World comes huffing to Indian markets

The Nifty bank and financial services sub-indices are driving the fall in the headline index. Given their weight in Nifty, the effects are considerable. The Nifty technology sub-index is also being affected by fears of a longer credit squeeze in the US as consumer spending remains stronger than expectations. This is part of the heightened volatility in global markets that have run up in anticipation of a soft landing of the US economy.

India bond yields flat as traders shrug off RBI policy

The RBI refrained from any major announcements - unlike in August and October - while Governor Shaktikanta Das said liquidity situations in the last two months did not warrant open market sale of bonds.

RBI policy: Tone’s hawkish, and there’s nothing ‘inadvertent’ about it

"We do not communicate anything inadvertently, let me make it very clear," Governor Das told reporters during the customary interaction after the latest policy review that was earlier interpreted as setting the stage for an easing of monetary policy. "If somebody is assuming it's a signal to move toward a neutral stance, I think it will be incorrect."

RBI policy: Facing issues with UPI payment limits? RBI lifts caps

The limits of UPI transactions for payments made to hospitals and educational institutes have been raised by five times from Rs 1 lakh to Rs. 5 lakh per transaction, enabling consumers to make higher amounts of UPI payments for education and healthcare purposes.

Debt fund managers decode RBI policy for investors

"RBI would target Inflation rate of 4% and not 2%-6% range, again signals the policy rates to remain higher for longer until Inflation is projected to come below 4%. RBI’s sharp focus on bringing down inflation is positive for markets in the medium-to-long term," says Amit Somani, Senior Fund Manager – Fixed Income, Tata Asset Management.

Goldman sees India to Australia easing policy earlier after Fed

Central banks across the Asia-Pacific, including India, are poised to adjust interest rates earlier than expected due to the Federal Reserve's swifter easing cycle. Goldman Sachs predicts rate cuts starting in the second and third quarters of the upcoming year for Indonesia, Taiwan, India, Australia, and New Zealand, yet foresees milder adjustments compared to the Fed's anticipated cycle.

RBI Policy: Das cites BoE acceptance to expand regulatory oversight deals

Days after the Reserve Bank of India (RBI) and the Bank of England (BoE) reached an agreement on cooperation regarding the Clearing Corporation of India (CCIL), central bank governor Shaktikanta Das called upon other regulators to accept the same principles amid an ongoing tussle with European authorities.

Nifty Bank closes flat ahead of RBI policy; resistance seen at 47,000

The index closed flat with a positive bias at 46,841. It touched an intraday high of 46,927 and an intraday low of 46,507. The Nifty50 index, too, fell but managed to close above 20,900.

Sensex snaps 7-day rally, drops 132 points ahead of RBI policy

The Reserve Bank of India’s rate-setting panel, the Monetary Policy Committee (MPC), is likely to keep the repo rate unchanged at 6.5% for the fifth consecutive time, shifting its focus on liquidity tightening, according to some economists. The market capitalisation of all listed companies on BSE increased by Rs 1.32 lakh crore to Rs 350.17 lakh crore.

RBI policy: What should mutual fund investors do?

The RBI continued with its policy stance of ‘withdrawing of accommodation’ and kept the Repo Rate, the short term rate at which it lends money to banks, at 6.5%. This is the fifth pause by the central bank since it started holding rates in February this year.

RBI declares formation of repository for fintechs to expand digital payments

The Reserve Bank of India (RBI) has increased the limits on UPI payments to Rs 5 lakh for specific situations and announced the creation of a repository for fintechs. This move aims to expand digital payments and reduce reliance on physical cash or cheques. The limits for UPI transactions made to hospitals and educational institutes have been raised from ₹1 lakh to ₹5 lakh per transaction.

What to expect from RBI policy meeting next week? Mahantesh Sabarad answers

So I believe that we will continue to see newer highs as far as the markets are concerned and the going seems to be properly laid out.

RBI leaves repo rate unchanged at 6.5%, stance of “withdrawal of accommodation” retained

The decision to leave rates unchanged was unanimously voted by the 6-member MPC panel, while the need to retain the stance was voted by 5 out of 6 members.

Stock Market Highlights: Nifty 50 forms long bullish candle on weekly charts. What traders should do next week

Tech View: Snapping Thursday’s losses, equities rose in trade on Friday and ended at record closing levels as the Reserve Bank of India’s policy action was on expected lines and as Governor Shaktikanta Das sounded dovish.

Is the December policy setting the stage for the roadmap ahead in 2024?

However, the pace slowed in the second half, with only four 25-basis-point rate hikes executed by these banks.

RBI meet begins Wednesday: Status quo likely amid strong growth, tighter liquidity conditions

“The RBI may stick to ‘withdrawal of accommodation’ stance given upside risks to food inflation (poor monsoon), strong GDP growth in the recent period and still hawkish global central banks,” said Nuvama Institutional Equities. Given the higher-than-expected GDP growth for Q2, experts do see the RBI raising its projections.

Assembly poll results, RBI policy among 7 factors that will drive Dalal Street this week

The strong momentum seen last week has led to the hope of the momentum continuing in the week ahead. However, sustenance of the momentum depends on the outcome of certain crucial events such as the outcome of the assembly elections that took place in 5 states, the outcome of which will be out on Sunday.

RBI policy outcome: The good, bad and ugly for D-Street investors

The banking regulator kept the repo rate unchanged for the third time at 6.5% while retaining the FY24 GDP forecasts of 6.5%. RBI Governor Shaktikanta Das revised the FY24 inflation upwards to 5.4% from an earlier 5.1%.

RBI Policy Print

RBI policy outcome expected but what brought bank stocks under pressure?

RBI mandated banks to maintain the ICRR at 10% of the net demand and time liabilities (NDTL) between May 19 and July 28. The Monetary Policy Committee (MPC) of the RBI led by Governor Shaktikanta Das today kept the repo rate unchanged at 6.5% while increasing the inflation estimates for FY24 to 5.4% from an earlier estimate of 5.10%.

RBI Policy: Repo rate left unchanged, “withdrawal of accommodation” stance retained

The monetary policy action was on the expected lines, and therefore, equities remained steady post the announcement. The Sensex was trading 324 points or 0.49% higher at 65,955.89, while the Nifty was steady above the 19,600 mark.. The Nifty Bank index also was trading 0.3% up at 44338.10 points.

RBI Policy: Repo rate left unchanged at 6.50%, but D-Street hit by incremental CRR on banks

While the policy stance was on the expected lines, the RBI’s decision to impose an incremental Cash Reserve Ratio (CRR) of 10% of NDTL on banks dampened Dalal Street’s mood. The incremental CRR has been imposed for May 19-July 28 period, and the RBI will review the same on September 8, Das said, adding that the move is “purely” a temporary measure.

Weather, veggies and peer pressure: All that can shape RBI MPC’s rate verdict

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) is expected to keep the repo rate fixed and maintain its withdrawal of accommodative stance when it makes its policy announcement on August 10. The RBI is most likely to focus on how it will be coping with the rising inflation print.

Will tomato prices push RBI to hike rates? Check old footprints of onion & potato

While tomato prices increase almost every June-July, potato prices increase after every two years and onion prices rise after every 2.5 years. Given the seasonal nature of price shocks and the fact that these spikes fizzle out within a few months, the RBI has mostly refrained from making its decision while looking at the vegetable basket.

RBI policy verdict tomorrow: As tomatoes paint inflation red, can Das soothe D-St’s frayed nerves?

Inflation will take centre-stage during the 3-day panel discussion in the backdrop of the recent surge in vegetable prices, particularly tomatoes. Since June, prices of tomatoes have increased by more than 5 times.

Equity benchmark indices fall ahead of RBI policy review

The broader market, however, ended positive. The Nifty Midcap 150 index gained 0.26% and Nifty Small-cap 250 index rose 0.16%. Foreign portfolio investors sold shares worth ₹711.34 crore on Tuesday. Domestic institutions were buyers to the tune of ₹537.31 crore.

Sensex extends rally to 2nd day, ends 364 pts higher on RBI pause; Nifty holds 19,650

The RBI's rate-setting committee kept the key lending rate steady at 6.50%. The central bank also maintained its policy stance of "withdrawal of accommodation" to bring inflation within its target band.

Sensex, Nifty open in green ahead of RBI MPC decision; Ujjivan SFB, IndiGo jump 2% each

Sensex rises over 200 pts ahead of RBI policy decision, Nifty above 19,600; Ujjivan SFB, IndiGo jump 2% each.Sensex, Nifty open in green ahead of RBI MPC decision; Ujjivan SFB, IndiGo jump 2% each

RBI MPC Meeting Highlights: When inflation is at or below 4% on durable basis that may call for a rethink on monetary policy, says RBI

RBI MPC Meeting Highlights: The monetary policy committee of the Reserve Bank of India (RBI) in its October review meeting unanimously decided to keep the policy repo rate unchanged at 6.5 per cent, thus maintaining status quo for the fourth straight occasions. Shaktikanta Das emphasised that the central bank is concerned and it has identified high inflation as a major risk to the economy. Das added that RBI is committed to aligning India's headline inflation at 4 per cent level. RBI maintained the stance - "withdrawal of accommodation". Das noted that 5 out of the 6 MPC members are for remaining focused on "withdrawal of accommodation" in monetary policy stance. In response to the Russia-Ukraine conflict, the Reserve Bank initiated a gradual policy rate increase starting in May 2022, ultimately reaching 6.5 percent by February of this year. Over the past three bi-monthly monetary policy reviews, the rate has remained unchanged. The Monetary Policy Committee (MPC), led by RBI Governor, commenced discussions on October 4. The government has tasked the Reserve Bank with the responsibility of ensuring that Consumer Price Index (CPI)-based retail inflation remains within 4 percent, with a margin of 2 percent on either side. In August, retail inflation stood at 6.83 percent, exceeding the RBI's comfort level. During an unscheduled meeting in May 2022, the MPC raised the policy rate by 40 basis points, initiating a series of rate hikes in subsequent meetings until February 2023. Cumulatively, the repo rate was raised by 250 basis points between May 2022 and February 2023. A turning pitch RBI expects ease in liquidity conditions on the back of release of the remaining impounded I-CRR funds and pickup in government spending. Whereas increase in currency demand due to festival season may act as a counterbalancing factor. RBI Guv said that it is a turning pitch and we will play our shots carefully. We may have to consider OMO-sales (Open Market Operation sales) to manage liquidity, consistent with the stance of monetary policy, said RBI Guv. The timing and quantum of such operations will depend on the evolving liquidity conditions, he added. RBI wants banks to lend funds to peers Recently, banks have shown a preference to place funds under the overnight SDF instead of offering them in the main 14-day variable rate reverse repo (VRRR) operations. As per RBI, It is imperative that banks assess their actual liquidity requirements over the reserve maintenance cycle and bid accordingly in the auctions under main 14-day VRRR operations. RBI said that it would be desirable that banks having surplus funds explore lending opportunities in the inter-bank call market rather than passively parking funds in the SDF at relatively less attractive rates. RBI reasoned this with the fact that greater volume of call money transactions would not only help in deepening the inter-bank money market but also lower the recourse of deficit banks to the MSF.