The RBI left rates unchanged at 5.50%, as expected, on Wednesday and said the inflation outlook was 'more benign'
The central bank also cut the inflation outlook for the current financial year by 60 basis points (bps) to 3.1 per cent which is significantly below its mandated target of 4 per cent
The MPC also reduced its inflation projection for this financial year from 3.7 per cent to 3.1 per cent, which is significantly lower than the target of 4 per cent
With the rise in inflation from the fourth quarter, possibility of another rate cut uncertain, unless growth plays spoilsport
The RBI decision aligned with market expectations as market experts welcomed the move, calling it in line and a constructive backdrop for the markets
RBI set to lower inflation projection, but GDP growth estimate and policy stance may remain unchanged
The personal consumption expenditures (PCE) price index rose 0.3 per cent last month after an upwardly revised 0.2 per cent gain in May, the Commerce Department's Bureau of Economic Analysis said
The finance ministry's June 2025 review says inflation could fall below the RBI's 3.7% target, providing scope for further easing, though credit growth remains weak
With data showing a steep decline in price rise in June, Reserve Bank Governor Sanjay Malhotra on Friday said that the outlook on inflation and growth will determine future rate cuts, making it clear that the current data will not influence the trajectory. Speaking at the FE Modern BFSI Summit here, Malhotra also stated that the RBI's rate cuts will not lead to asset bubbles and added that the central bank has more ammunition in its arsenal beyond rate cuts to help the economy. It can be noted that the RBI has cut its key rates by 1 percentage point this year, and official data pointing to headline inflation cooling to 2.1 per cent against the 4 per cent target has led to expectations of further easing. "Rate cuts will depend on the outlook for both growth and inflation rather than the current numbers," Malhotra said. "We have to remember that monetary policy works with a lag and hence outlook on the outcomes on key data like inflation for up to 12 months is kept in mind while taki
RBI's report on the transition to flexible inflation targeting highlights its role in managing inflation expectations, despite supply shocks and global inflation factors
Powell and other Fed officials said they expected price increases to quicken this summer
Prices of oils and fats, for example, increased by over 17 per cent and may require policy attention
Annual retail inflation in India slowed to a more than six-year low of 2.10% in June, on the back of easing food prices, data showed on Monday
Economists reckon that the decline in inflation is expected on account of easing prices across various goods categories, especially food items and a favourable base effect
The producer price index fell 3.6 per cent in June from a year earlier, worse than a 3.3 per cent decline in May and the largest drop since July 2023
The cost of both vegetarian and non-vegetarian thalis decreased year-on-year in June, driven by lower vegetable prices, but some input costs, like oil and LPG, saw an increase
CBDT raises Cost Inflation Index to 376 for FY26, offering tax relief on capital gains for assets bought before July 23 2024. New rules reduce indexation scope under Finance Act 2024
Retaining the inflation target would remove some uncertainty about the process and reassure market participants about policy continuity under Governor Sanjay Malhotra
The head of the European Central Bank said inflation has become more unpredictable due to shocks like the COVID-19 pandemic and Russia's invasion of Ukraine and that policymakers need to take the possibility of such extreme scenarios into account and communicate them to the public as well. The world ahead is more uncertain, and that uncertainty is likely to make inflation more volatile, European Central Bank (ECB) President Christine Lagarde said Monday in a speech opening the central bank's annual conference in Sintra, Portugal. It's pretty basic but that's the reality. One reason, she said, was that increasingly regular supply disruptions were leading companies to change their prices more frequently, a habit that goes beyond the recent burst of inflation in the US and Europe and reflects a structural shift in how firms operate under conditions of permanently higher uncertainty. The bank's assessment of the economy needs to rely on taking extreme possible scenarios into account as
FIT model set to be reviewed amid call for excluding food inflation