MPC

The domestic stock market is expected to remain volatile this week as investors track the Reserve Bank's monetary policy decision, key global macroeconomic data and the impact of the West Asia conflict, analysts said. Movements in crude oil prices and foreign fund flows will also influence domestic equities, they added. Vinod Nair, Head of Research, Geojit Investments Ltd, said the RBI's Monetary Policy Committee (MPC) meeting will command centre stage domestically, with investors closely watching the central bank's stance on inflation and growth. "A rate pause is near-certain consensus, the central bank walks a tightrope between crude-driven inflation risks and a four-year low Manufacturing PMI signalling a softening growth impulse. The governor's commentary on the rate cycle trajectory and FY27 projections will be closely monitored. "Globally, the US March CPI reading will carry significant importance, as it buries residual Fed rate-cut hopes, strengthens the dollar and tightens

This time, communication will be key, not action

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.

Reserve Bank Governor Sanjay Malhotra voted for the status quo in the key interest rate earlier this month, saying the current policy rate was appropriate, given the buoyant economic growth and benign inflation, according to the MPC meeting minutes released on Friday. The Reserve Bank kept the short-term lending rate (repo) unchanged at 5.25 per cent after the Monetary Policy Committee (MPC) meeting held from February 4 to 6. The governor and the other five members of the MPC had voted to keep the repo rate unchanged. According to the minutes, Malhotra argued that India's macroeconomic fundamentals, over the medium-term, including the external sector, remain healthy and robust. "Given the present state of the economy and its outlook -- buoyant growth and benign inflation -- I feel the current policy rate is appropriate. Accordingly, I vote for continuation of the policy repo rate at 5.25 per cent and retain the neutral stance," he said. Deputy Governor Poonam Gupta said that, ...

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The decision for the status quo on the policy rate was unanimous. As for the stance, one of the six MPC members, Ram Singh, held a different view, favouring a change to "accommodative"

The RBI’s Monetary Policy Committee on Friday kept the repo rate unchanged at 5.25%, while continuing with its 'neutral' stance. Governor Sanjay Malhotra assured proactive liquidity management

The Reserve Bank of India (RBI) has already cut rates by 125 basis points since last February, bringing the policy repo rate down to 5.25 per cent

High-frequency indicators for November show economic activity remained resilient with robust demand, even as RBI flagged global uncertainties and moderated growth momentum ahead

Saugata Bhattacharya, external MPC member, spoke on the scope for further rate cuts and how the RBI's foreign exchange market interventions could influence the policy path going forward

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

Multiple MPC members of late flagged the re-emergence of space for further monetary easing given the record-low CPI inflation

C S Setty says effective liability management will help the bank to protect its margin above 3%

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

India's GDP data for the July-September quarter is scheduled for Friday and the monetary policy decision will follow on December 5

While participants in the domestic financial market are expecting a 25 basis-point policy repo rate cut in the December meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India

At BS BFSI Insight Summit 2025, a high-level panel of economists said that flexible inflation targeting has largely worked in keeping inflation under control and no major revamp is required

The MPC kept the repo rate unchanged at 5.5 per cent in its October meeting, while striking a dovish tone and hinting that inflation risks were ebbing faster than anticipated

The Reserve Bank of India’s Monetary Policy Committee has decided to keep the repo rate steady at 5.5%, while lowering its inflation forecast and revising growth projections upward.