Monetary Policy

RBI MPC lowers FY27 inflation forecast to 5%, projects GDP growth at 6.7%

RBI MPC August: The policy committee kept the repo rate unchanged at 5.25 per cent, and the committee maintained its 'neutral' stance

MPC meet: RBI may join global central banks on status quo bandwagon

All eyes on whether the policy tone turns less dovish

Best of BS Opinion: Resilience needs many moving parts to work together

From monetary policy and aviation to foreign investment, climate action and public health, today's editorials examine why complex challenges need coordinated solutions

RBI may hold rates, but 50-75 bps hike still in sight: Nippon India MF CIO

Nippon India MF expects the RBI to keep rates unchanged for now, while forecasting a limited 50-75 bps rate hike cycle over the next 12-15 months

Oil prices and monsoon uncertainty will shape RBI's inflation outlook

June inflation rose above the RBI's 4% target, with food, oil prices and monsoon risks clouding the outlook, making a status quo on rates the likely policy choice

US Fed Chair names three Indians on new monetary policy task forces

Indian-origin leaders Raghuram Rajan, Raj Chetty and Asha Sharma will head key US Federal Reserve task forces reviewing monetary policy and institutional reforms

Premature to talk about rate hikes, says RBI Governor Sanjay Malhotra

Central bank chief says RBI is monitoring the inflation impact of higher crude oil prices, while highlighting India's stronger external position and resilient banking system

The Greenspan era: "Great moderation" can lead to great disruption

Alan Greenspan's legacy spans economic stability, financial deregulation and debate over the 2008 crisis, while his views on India underscored the need for deeper reforms

Alternatives to intervention: The case for freer markets, fewer distortions

Stepping in may address immediate pressures, but fewer distortions and freer markets could deliver more durable outcomes

Minutes of June MPC meet: Members wary of generalisation of inflation

RBI Monetary Policy Committee members highlighted risks of inflation becoming broad-based and stressed uncertainty around growth and prices due to the West Asia conflict

EMs in the oil shock: Policymakers are going into an examination hall

The 2026 oil shock is testing emerging economies, with fuel pricing, exchange-rate flexibility and inflation control set to determine growth outcomes

Monetary policy: Reserve Bank of India opens window for dollar inflow

RBI has unveiled a five-pronged plan to attract foreign capital, boost dollar inflows, ease banking liquidity pressures and support the rupee

Cautious status quo: RBI sees higher inflation, slower growth in FY27

The decision to hold rates was unanimous. The MPC also retained the neutral stance on policy

Overseas investors pivot to short India debt ahead of policy turn

Overseas investors overall bought bonds worth ₹22,100 crore in January-February, while in March, they sold a record ₹17,700 crore, before turning buyers in April-May

RBI keeping close watch to see if supply shocks warrant policy action: Guv

RBI Governor Sanjay Malhotra said the central bank is monitoring whether supply shocks from the West Asia conflict trigger broader inflationary pressures

RBI to conduct ₹2 trillion VRRR to absorb surplus liquidity in system

RBI to conduct Rs 2 trillion variable rate reverse repo auction to absorb surplus liquidity, with banking system surplus remaining above Rs 5 trillion

RBI allows NBFCs access to term money market; volumes likely to rise

Move expected to improve liquidity and price discovery, though borrowing costs may remain aligned with commercial paper rates due to credit profile differences

RBI opens term money market to NBFCs, corporates to boost liquidity

RBI allows NBFCs, corporates and AIFIs to participate in term money market to deepen liquidity, improve price discovery and strengthen policy transmission

Introducing a core inflation forecast is not a policy shift, says RBI Guv

RBI MPC meet: RBI Governor Sanjay Malhotra clarified that publishing a core inflation forecast is not a change in policy approach and the central bank will continue to focus on headline inflation

RBI injects ₹84,582 crore in banking system in two variable repo rate

The Reserve Bank of India (RBI) on Monday injected Rs 84,582 crore of transient liquidity into the banking system through two variable rate repo (VRR) auctions. The central bank injected Rs 50,001 crore through first three-day VRR auction early in the day at cut-off rate of 5.34 per cent and weighted average rate of 5.44 per cent, the central bank said in a release. The RBI injected another Rs 34,581 crore at 5.26 per cent cut-off and 5.30 per cent weighted average rate at an auction later during the day. In the first auction, the central bank received bids of Rs 57,287 crore as against the notified amount of Rs 50,000 crore and accepted bids worth Rs 50,001 crore. However, for the second auction, bids received were lower than the notified amount. Currently, liquidity in the banking system is estimated to be in surplus of about Rs 1.27 lakh crore as on March 27. In the last few days, the central bank infused transient liquidity of Rs 2,73,530 crore in to the banking system through