Monetary Policy

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

RBI MPC February meeting: In its policy meeting, which took place between February 4-6, the committee continued with the 'neutral' stance

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The Bank of England on Thursday cut its key interest rate for the first time in four months amid signs that the stubbornly high inflation that has plagued British consumers and businesses is beginning to ease. Policymakers at Britain's central bank voted 5-4 to reduce the base rate by a quarter of a percentage point to 3.75 per cent on Thursday, the lowest since February 2023. The move came a day after the Office for National Statistics reported that consumer price inflation slowed to 3.2 per cent in the 12 months through November, from 3.6 per cent a month earlier. The figure was below the Bank of England's forecast of 3.4 per cent. That gave policymakers room to cut interest rates in an effort to bolster Britain's stagnant economy. Statistics released earlier this week showed a weakening jobs market, with the number of job vacancies declining and the unemployment rate rising to 5.1 per cent, the highest since January 2021. Even so, the bank's Monetary Policy Committee was divide

For the RBI, it makes its job very difficult. To target inflation effectively, the RBI must set interest rates based on its inflation outlook

The report concluded that although international policy consensus was shifting towards multiple-target, multiple-instrument frameworks, India should first focus on reducing the then high inflation

The Reserve Bank of India has reduced the repo rate by 25 basis points to 5.25 per cent in its December policy review. The central bank has also raised its growth forecast and lowered its inflation

The RBI MPC revised its inflation forecast downward from 2.6 per cent to 2 per cent in the December meeting

Economists believe that the six-member committee will maintain the status quo on its stance at the December policy meeting

After slashing repo rates for three consecutive months since February, the MPC kept the rate unchanged at 5.5 per cent since August

HSBC economist argues GDP overstated, inflation structural, and currency depreciation acts as a needed shock absorber

With inflation at a record low of 0.25% and robust GDP growth, the RBI faces a close call between supporting the economy and a weakening rupee

India's ill-conceived and hurriedly adopted inflation targeting is one such initiative that needs to be carefully evaluated

Optimism building around potential announcement of an OMO calendar

₹14,735 cr raised against ₹24,800 cr plan as PFC, Nabard pull short-term bonds