Monetary Policy

NBFCs saw stronger credit growth, led by retail and industry lending, while their reliance on bank funding increased following the restoration of earlier risk weights, says RBI Bulletin

Net FDI inflows increased from $9.6 billion a year ago, supported by higher gross inward investment and a slowdown in outward FDI, according to Reserve Bank of India data

With the RBI hiking the policy rate at its recent MPC meeting amid higher geopolitical tensions, fixed deposits could offer a safe harbour for the less risk-averse

Festive cash withdrawals and tighter CRR requirements shrink surplus liquidity, prompting banks to seek short-term funds from the RBI

Measures to curb dollar demand have strengthened the rupee, but raise costs for importers and leave the durability of the recovery uncertain

RBI Governor Sanjay Malhotra says monetary policy and financial stability cannot be separated completely, as the central bank steps up measures to curb rupee volatility

Several banks, including BoB, PNB and Indian Bank, raise repo-linked lending rates by 25 bps after the RBI's policy rate increase, making loans costlier for borrowers

Central banks need to factor in geopolitical risks before they materialise, not treat them as a sideshow

With inflation risks rising, RBI signals a measured tightening cycle ahead

The benchmark 10-year government bond yield rises to 7.24 per cent as the RBI shifts to withdrawal of accommodation, with foreign outflows and oil prices adding pressure

Deposit rates may rise with a lag, credit demand seen holding up

The rupee records its second-weakest close as external pressures and weak dollar inflows weigh; RBI Governor Sanjay Malhotra says the currency may be undervalued

RBI Governor Sanjay Malhotra says profit or surplus is incidental to the central bank's operations, stressing overall economic benefits amid questions over swap costs.

Depending on growth-inflation dynamics, the repo rate could rise to 6-6.25 per cent next year

More repo rate increases are imminent

RBI MPC October 2026: The policy committee raised the repo rate to 5.5% and changed the stance to 'calibrated tightening'

For the repo rate to remain an effective signal, the weighted average call rate needs to be aligned with it

Core liquidity surplus remains around ₹10 trillion, keeping the focus on RBI's liquidity operations as markets expect a 25-basis-point repo rate increase this week

Compelling reasons for an increase in the repo rate

India's inflation-targeting framework has anchored price expectations, but economists see scope to refine its mandate