Page 4 - Interest Rates

EPFO keeps interest rate at 8.25% for FY25, benefiting 300 million members

This comes against the backdrop of ebbing stock markets and bond yields in the current financial year

Moderation in inflation creates policy space for RBI to cut rates: NCAER

Moderation in inflation to five-month low of 4.3 per cent in January has provided RBI more space to cut interest rate in policy meet, according to the monthly economic review by the National Council of Applied Economic Research (NCAER). Earlier this month, RBI slashed policy repo rate by 25 basis points to 6.25 per cent. The next monetary policy committee meeting is to be held in April. Even in the face of global headwinds, some of the high-frequency indicators of the Indian economy have turned more benign and the nascent turnaround is evident in indicators like Purchasing Managers' Index for manufacturing, GST collections and non-EV and EV sales, it said. PMI for manufacturing increased to 57.7 in January, signalling expansion, while PMI for services remained at an elevated level of 56.5. The economic think tank added that GST collections, gross and net, achieved robust double-digit growth of 12.3 per cent and 10.9 per cent, respectively in January 2025, as compared to subdued a .

RBI's repo rate cut: The global environment will pose risks

The RBI expects the consumer price index-based inflation rate to average 4.2 per cent in 2025-26 - assuming a normal monsoon - compared to the projection of 4.8 per cent this financial year

RBI ends rate cut wait; Sanjay Malhotra stresses 'less restrictive' policy

First repo cut in 5 yrs, of 25 bps to 6.25%, set to ease home loan rates; MPC keeps 'neutral' stance

RBI MPC 2025 Highlights: Endeavour of RBI to provide as much as liquidity as required, says RBI Guv

RBI Monetary Policy Highlights: RBI Governor Sanjay Malhotra announced a 25 bps cut in the repo rate -- from 6.5% to 6.25%

Indian govt bond yields decline on interest rate cut expectations

The benchmark 10-year yield ended at 6.6562% compared with Wednesday's close of 6.6616%

Foreign investors step up bond purchases ahead of anticipated rate cut

Portfolio managers that are underweight on Indian bonds have started rebalancing their portfolios

New RBI Governor Sanjay Malhotra expected to begin interest rate cuts

The governor is chairing an almost entirely new six-member monetary policy committee

RBI Policy Preview: MPC's decision on interest rates hangs by a fine thread

RBI Monetary Policy: With the Union Budget for FY-2026 behind us, the focus now shifts to the next big event on the horizon - the Monetary Policy Committee's (MPC) final meeting for FY-2025 on Feb 7

Customer service, higher interest rates to drive pvt banks' deposit growth

More important is customer service, like these days, digital banking, mobile banking, our internet banking, how these are synchronised

US Fed leaves policy rate unchanged, says unemployment rate is low

Fed officials say they largely believe the progress in lowering inflation will resume this year, but have now put rates on hold as they await data to confirm it

Sensex sheds 1.4% amid heavy FPI selling; Nifty settles at 23,086

The Sensex ended the session at 76,330, a decline of 1,049 points or 1.4 per cent, while the Nifty closed at 23,086, down 346 points or 1.5 per cent

Mandatory for banks to offer fixed interest rate product: RBI's FAQs

The RBI on Friday said it is mandatory for banks to offer fixed interest rate product in all equated installment based personal loan categories. The FAQs on 'Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Personal Loans' (August 2023) also said the circular covers all equated installment based personal loans, irrespective of whether the interest rate is linked to an external benchmark or an internal benchmark. At the time of sanction of loans, annualised rate of interest/ annual percentage rate (APR), as applicable, should be disclosed in the Key Fact Statement (KFS) and the loan agreement, the FAQs said when and at what frequency should banks and other regulated entities (REs) communicate with the borrower. During the tenure of the loan, any increase in the EMI/tenor on account of the external benchmark rate should be communicated. The quarterly statements should be provided disclosing at the minimum, the principal and interest recovered till date, EMI

Fund managers see RBI boosting liquidity before interest rate cuts

The RBI is one of the few central banks globally that is yet to cut interest rates despite repeated calls for easing amid a slowing economy

Fed minutes could hold clues to thinking on further interest rate cuts

The minutes, to be released at 2 p.m. EST (1900 GMT) on Wednesday, may help clarify how policymakers will approach further rate reductions

Buying a home? Explore the best loan rates in January 2025

Terms vary and are influenced by several factors including your creditworthiness, loan amount, profession

Fixed income outlook 2025: Lock into peak rates as cuts are likely

The much-anticipated interest rate cut cycle may be delayed, but experts believe the Reserve Bank of India (RBI) will reduce rates in 2025

High rates, declining finance impacting exporters' competitiveness: CII

Indian exporters are grappling with significant liquidity challenges due to high interest rates and a decline in export finance, which are undermining their competitiveness, according to Sanjay Budhia, Chairman of the CII National Committee on EXIM. To address these issues, he said, the government and banks must work together to provide effective solutions. Budhia suggested the government extend the interest equalisation scheme, which ended on December 31, 2024, for three years for all manufacturing exporters, including MSMEs (micro, small and medium enterprises). The longer period extension of the scheme would be a crucial step, as its limited extension leaves Indian manufacturers at a disadvantage, he added. "Exporters are indeed facing significant challenges on the liquidity front, with high interest rates and declining export finance impacting their competitiveness," he told PTI. MSME exporters, who form the backbone of India's export ecosystem, would benefit greatly from ...

Dollar gains as US Fed's rate-cut rethink fuels best year since 2015

The dollar advanced against all of its major peers in 2024, with the New Zealand dollar, Norwegian krone and Japanese yen weakening the most against the US currency

Govt retains interest rates on small savings schemes for Jan-Mar quarter

The government on Tuesday left the interest rates unchanged on various small savings schemes, including PPF and NSC, for the fourth straight quarter beginning January 1, 2024. "The rates of interest on various small savings schemes for the fourth quarter of FY 2024-25, starting from January 1, 2025, and ending on March 31, 2025, shall remain unchanged from those notified for the third quarter (October 1, 2024, to December 31, 2024) of FY 2024-25," said a finance ministry notification. As per the notification, deposits under the Sukanya Samriddhi scheme will attract an interest rate of 8.2 per cent, while the rate on a three-year term deposit remains at 7.1 per cent prevailing in the current quarter. The interest rates for popular Public Provident Fund (PPF) and post office savings deposit schemes too have been retained at 7.1 per cent and 4 per cent, respectively. The interest rate on the Kisan Vikas Patra will be 7.5 per cent, and the investments will mature in 115 months. The ..