MPC

RBI's October Monetary Policy Report flags widening price pressures across goods and services, with food and fuel inflation adding to concerns over second-round effects

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

The RBI’s Monetary Policy Committee has raised the repo rate by 25 basis points to 5.5%. For floating-rate home loan borrowers, the impact depends on the loan’s benchmark and reset date. For example,

The RBI has raised the repo rate by 25 basis points to 5.50%. For FD investors, the key question is simple: will deposit rates now rise? Here is what the hike means for existing FDs

The Reserve Bank of India's (RBI's) Monetary Policy Committee (MPC) on Wednesday unanimously hiked the repo rate by 25 basis points to 5.5 per cent from 5.25 per cent.

If we can sustain our growth rates, I think the inflow of risk capital is also likely to persist, says Neelkanth Mishra, India's executive director at the World Bank

RBI's MPC faces a rate-hike dilemma as inflation remains within target even as robust economic growth and demand pressures strengthen the case for tighter policy

Ghate says flexible inflation targeting has established a credible nominal anchor, while stronger monetary-fiscal coordination remains important for managing inflation

Ashima Goyal says the inflation-targeting band gives the MPC the flexibility to look through temporary food inflation

"Core inflation helps in assessing the persistence of inflationary pressures and the likelihood of second order effects"

RBI may raise repo rate by 25 bps in October as higher crude prices raise inflation risks, while resilient growth could prompt an upward revision to the FY27 growth forecast

A rate increase would restore some real monetary restraint as inflation expectations rise and growth remains strong

High exposure to repo-linked RAM loans could help public sector banks reprice assets faster than deposits if the RBI raises rates

Today's opinion pieces examine the RBI's policy outlook, weaknesses in public examinations, state capacity, India's infrastructure financing gap and Omer Bartov's critique of Israel

In the minutes, RBI Governor Sanjay Malhotra argued that there was a need to remain watchful of a broadbased increase in inflation and de-anchoring of expectations

Despite markets continuing to price in policy rate hikes over the next 6-12 months, the softer-than-expected tone of the policy has supported bond markets, said Deepak Agrawal, Kotak Mahindra AMC.

The RBI is expected to keep interest rates unchanged, but rising oil prices and inflation risks could shape its future stance.

After three days of deliberations, the six-member Monetary Policy Committee (MPC), headed by RBI Governor Sanjay Malhotra, will announce its decision on June 5

Coordination with fiscal policy becomes critical amid 'supply shock as bad as it is', says Malhotra

Ram Singh says while such a pause cannot fix the supply disruption, it is an effective tool to mitigate a growth sacrifice that would worsen the output gap