The Bank of England on Thursday cut its key interest rate for the first time in four months amid signs that the stubbornly high inflation that has plagued British consumers and businesses is beginning to ease. Policymakers at Britain's central bank voted 5-4 to reduce the base rate by a quarter of a percentage point to 3.75 per cent on Thursday, the lowest since February 2023. The move came a day after the Office for National Statistics reported that consumer price inflation slowed to 3.2 per cent in the 12 months through November, from 3.6 per cent a month earlier. The figure was below the Bank of England's forecast of 3.4 per cent. That gave policymakers room to cut interest rates in an effort to bolster Britain's stagnant economy. Statistics released earlier this week showed a weakening jobs market, with the number of job vacancies declining and the unemployment rate rising to 5.1 per cent, the highest since January 2021. Even so, the bank's Monetary Policy Committee was divide
For the RBI, it makes its job very difficult. To target inflation effectively, the RBI must set interest rates based on its inflation outlook
The report concluded that although international policy consensus was shifting towards multiple-target, multiple-instrument frameworks, India should first focus on reducing the then high inflation
The Reserve Bank of India has reduced the repo rate by 25 basis points to 5.25 per cent in its December policy review. The central bank has also raised its growth forecast and lowered its inflation
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
HSBC economist argues GDP overstated, inflation structural, and currency depreciation acts as a needed shock absorber
With inflation at a record low of 0.25% and robust GDP growth, the RBI faces a close call between supporting the economy and a weakening rupee
India's ill-conceived and hurriedly adopted inflation targeting is one such initiative that needs to be carefully evaluated
Optimism building around potential announcement of an OMO calendar
₹14,735 cr raised against ₹24,800 cr plan as PFC, Nabard pull short-term bonds
PSU NBFCs Nabard, Sidbi, PFC and IRFC will raise up to ₹24,000 crore next week as issuers rush to lock in funds ahead of the RBI's December policy review amid expectations of firming yields
Government bond yields remained unchanged on Friday as the cut-off for the new 10-year paper matched market expectations, with traders watching US Treasury moves next week
At Business Standard's BFSI Summit 2025, RBI Deputy Governor Poonam Gupta said India's strong growth outlook leaves scope for monetary policy easing while fiscal policy remains conducive for expansion
Former RBI Chair Professor Charen Singh says the 4 per cent inflation target stifles growth and jobs, calling for a flexible 5-7 per cent range and a band-only framework instead of a fixed point targe
Attribute this to fiscal, monetary measures
RBI research finds corporate profits nearly tripled in four years, aided by pent-up demand, manufacturing resilience, and deleveraged balance sheets
With inflation easing and rate cuts on the horizon, bond yields may soften while the rupee steadies as trade negotiations with the US shape market sentiment
RBI's State of the Economy report highlights India's macro strength despite global volatility; notes negative FDI inflows and rising policy uncertainty worldwide