RBI Repo Rate

Indian banks are struggling to balance deposit mobilisation and margin protection after the RBI's latest rate cut, as savers shift away from banks even as credit growth remains strong

The 10-year benchmark government bond yield has risen 14 bps since the RBI's 25 bps repo rate cut, as traders price in the move as the last of the cycle and foreign investors unwind positions

The RBI under him prizes stability, yet remains open to reform. The onus is on the banking industry to prove it deserves Malhotra's trust

Government bond yields pared early gains on Friday as mutual funds and private banks sold at a profit after the RBI cut the repo rate by 25 bps and announced Rs 1 trillion of OMO purchases this month

Repo rate cut by 25 bps, stance still neutral; liquidity boost via ₹1 trn OMO in Dec

The rate cut comes at a time when housing sales across the top Indian cities are moderating, with affordability concerns being one of the key factors behind the plateauing

If inflation undershoots RBI projections and growth faces roadblocks from trade barriers and geopolitics, another 25-bps rate cut will not be a surprise

RBI MPC meeting December 2025 HIGHLIGHTS: Reserve Bank of India (RBI) Governor Sanjay Malhotra will announce the outcome of the Monetary Policy Committee's (MPC's) December meeting today

The most significant change in the December policy meeting was the reduction of the repo rate, the interest rate at which the RBI lends money to commercial banks

At 10:25 AM; Nifty Realty and Nifty PSU Bank index were up 1 per cent each, while, Nifty Auto, Nifty Bank and Nifty Financial Services index up in the range of 0.30 per cent to 0.60 per cent.

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

Interestingly, the US Federal Reserve's December 2025 meeting is a few days after the MPC's last scheduled review for 2025, in which it may cut rates further.

In the preceding quarter, the current account had recorded a deficit of $2.4 billion ot 0.2 per cent of GDP

OMOs for liquidity infusion expected, say economists

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

The one-year OIS rate has dropped to a month-low, with markets pricing in a 20-bps repo rate cut by February after RBI's governor signalled room for easing, though uncertainty over December's move per

Seasonality, a fundamental component of economic data alongside trend and cyclical movements, reflects recurring patterns arising from weather, production cycles, holidays and institutional behaviour

The net liquidity in the banking system was in a surplus of ₹1.56 trillion on Thursday, according to latest data by the RBI