RBI Rate Cut

The RBI's Monetary Policy Committee kept the repo rate unchanged at 5.25 per cent and retained its neutral stance. Experts noted that the central bank struck a balanced tone

The Reserve Bank of India (RBI) is expected to keep the benchmark repo rate unchanged in its August monetary policy review on elevated inflation risks and pending the closure of the FCNR(B) deposit scheme, a poll of 10 economists and treasury heads has revealed. Most respondents anticipate that the central bank will maintain its policy stance as 'Neutral' while adopting a hawkish tone amid rising inflation risks from geopolitical tensions, elevated crude oil prices and an uneven monsoon. Economists said the central bank will remain in a "wait-and-watch" mode as it assesses the evolving inflation outlook. "As of now, trimmed core inflation remains benign and suggests a status quo is the best policy option for the time being, with caution being expressed through the policy tone," said Aditi Nayar, chief economist at ICRA. In recent media outings, Governor Sanjay Malhotra has reiterated that inflation will be the central bank's foremost priority going ahead, pointing out that progress

The domestic stock market is entering a significant trading week, with the RBI's interest rate decision, West Asia situation involving the US-Iran conflict, and crude oil prices emerging as the major driving factors for investors' sentiment, analysts said. Besides, quarterly earnings and trading activity of foreign investors would also be tracked by investors to determine further movement, they added. "This week is expected to be eventful, with the RBI Monetary Policy Committee (MPC) meeting (August 3-5) emerging as the key domestic trigger. Market participants will also closely monitor the ongoing Q1 FY27 earnings season, with several largecap and midcap companies scheduled to announce their results," Ajit Mishra SVP, Research, Religare Broking Ltd, said. Globally, developments surrounding the US-Iran conflict, stability of crude oil supplies through key shipping routes will remain important drivers of market sentiment, he added. After four straight months of selling, foreign ...

CareEdge Ratings says fresh loan rates fell faster than outstanding rates in FY26, with education, MSME, trade, large industry and housing leading the broad decline

While a majority of economists expect the central bank to ​keep rates unchanged, some market indicators like overnight indexed swaps are already pricing in a rate hike

RBI keeps repo rate unchanged at 5.25 per cent and retains a neutral stance, while warning that crude oil volatility and the Iran conflict could pose upside risks to inflation

The rupee is likely to open ‌in the 92.40-92.50 range versus the US dollar, having settled at 93.0075 on Tuesday

Last week, Nomura had assigned a 65 per cent probability that ‌the Reserve Bank of India would cut its policy rate by 25 basis points to 5 per cent

With FY25-26 CPI inflation likely to average at 2.1 per cent Year-on-Year and FY26-27 CPI inflation to still average below the 4.0 per cent target, the question of 'space' is still easy to answer

The central bank has lowered benchmark borrowing costs by a cumulative 125 basis points since February 2025

The benchmark 10-year yield on Monday surged back to nearly the same level seen before the RBI began cutting rates early last year

Rising state bond supply, which offers higher yields than debt, is pushing investors to demand more from govt securities, complicating RBI's efforts to lower borrowing costs despite recent rate cuts

Industry confidence rose to a five-quarter high in the December quarter of FY26, supported by steady domestic demand

Markets look calm, but five forces-rising debt, slowing revenues, weak savings, geopolitics and populism-signal a tougher growth phase for India

Stronger-than-expected FY26 growth gives India a rare Goldilocks moment, but sustaining the momentum in FY27 will hinge on policy coordination amid global uncertainty

RBI repo rate cuts fail to ease yields across tenors

With liquidity easing, valuations normalising and earnings turning upward, India enters 2026 primed for selective outperformance - led by banks, consumption and smallcaps

India's automobile industry is set to post its highest-ever retail sales in 2025, supported by GST rationalisation, income tax relief, RBI rate cuts and improving rural demand after a good monsoon

RBI's liquidity push is being neutralised by record state borrowing, keeping yields elevated and markets subdued - exposing deep fiscal strains beneath India's strong GDP numbers

Do not chase past returns, as the interest-rate environment that produced them no longer exists and gains from falling rates are largely behind investors