Monetary Policy

Indian-origin leaders Raghuram Rajan, Raj Chetty and Asha Sharma will head key US Federal Reserve task forces reviewing monetary policy and institutional reforms

Central bank chief says RBI is monitoring the inflation impact of higher crude oil prices, while highlighting India's stronger external position and resilient banking system

Alan Greenspan's legacy spans economic stability, financial deregulation and debate over the 2008 crisis, while his views on India underscored the need for deeper reforms

Stepping in may address immediate pressures, but fewer distortions and freer markets could deliver more durable outcomes

RBI Monetary Policy Committee members highlighted risks of inflation becoming broad-based and stressed uncertainty around growth and prices due to the West Asia conflict

The 2026 oil shock is testing emerging economies, with fuel pricing, exchange-rate flexibility and inflation control set to determine growth outcomes

RBI has unveiled a five-pronged plan to attract foreign capital, boost dollar inflows, ease banking liquidity pressures and support the rupee

The decision to hold rates was unanimous. The MPC also retained the neutral stance on policy

Overseas investors overall bought bonds worth ₹22,100 crore in January-February, while in March, they sold a record ₹17,700 crore, before turning buyers in April-May

RBI Governor Sanjay Malhotra said the central bank is monitoring whether supply shocks from the West Asia conflict trigger broader inflationary pressures

RBI to conduct Rs 2 trillion variable rate reverse repo auction to absorb surplus liquidity, with banking system surplus remaining above Rs 5 trillion

Move expected to improve liquidity and price discovery, though borrowing costs may remain aligned with commercial paper rates due to credit profile differences

RBI allows NBFCs, corporates and AIFIs to participate in term money market to deepen liquidity, improve price discovery and strengthen policy transmission

RBI MPC meet: RBI Governor Sanjay Malhotra clarified that publishing a core inflation forecast is not a change in policy approach and the central bank will continue to focus on headline inflation

The Reserve Bank of India (RBI) on Monday injected Rs 84,582 crore of transient liquidity into the banking system through two variable rate repo (VRR) auctions. The central bank injected Rs 50,001 crore through first three-day VRR auction early in the day at cut-off rate of 5.34 per cent and weighted average rate of 5.44 per cent, the central bank said in a release. The RBI injected another Rs 34,581 crore at 5.26 per cent cut-off and 5.30 per cent weighted average rate at an auction later during the day. In the first auction, the central bank received bids of Rs 57,287 crore as against the notified amount of Rs 50,000 crore and accepted bids worth Rs 50,001 crore. However, for the second auction, bids received were lower than the notified amount. Currently, liquidity in the banking system is estimated to be in surplus of about Rs 1.27 lakh crore as on March 27. In the last few days, the central bank infused transient liquidity of Rs 2,73,530 crore in to the banking system through

The Reserve Bank of India (RBI) on Friday injected Rs 65,322 crore of transient liquidity into the banking system through a six-day variable rate repo (VRR) auction. The RBI injected the funds at a cut-off rate of 5.26 per cent and a weighted average rate of 5.29 per cent, the central bank said in a release. The liquidity injected was lower than the notified amount of Rs 75,000 crore, despite the sharp drop in surplus liquidity in the banking system due to advance tax payments and GST outflows. Currently, liquidity in the banking system is estimated to be in surplus of around Rs 48,698.38 crore as on March 26. In the last few days, the central bank infused transient liquidity of Rs 2,08,208 crore into the banking system through VRR auctions of various tenures. Before this, RBI had infused Rs 3.50 lakh crore of durable liquidity into the banking system through open market purchase (OMO) of government securities since January 2026.

In inflation-targeting economies such as India, communication is a key instrument of monetary policy

India's new CPI series modernises inflation measurement, reshapes RBI policy signals, and underscores the need for more market-friendly data release timings

The governor cited strong growth and lower-than-expected inflation as the key reasons for keeping the repo rate unchanged in the February policy meet

Malhotra said that several measures announced in the Union Budget, along with the India-EU trade deal, are expected to provide a boost to economic momentum