RBI Monetary Policy Committee maintained its GDP growth forecast for FY26 at 6.5%, lowered inflation forecast to 3.7%
With inflation easing and growth momentum weakening, RBI is widely expected to cut the repo rate by 25 bps to 5.75% at its June 6 MPC meeting, continuing its accommodative stance
RBI expected to lower inflation projection for FY26
Beyond growth-inflation dynamics, let's revisit moments when central bankers brought humour to the table
The Reserve Bank is likely to go for a third consecutive rate cut of 25 basis points on Friday as inflation continues to remain below the median target of 4 per cent, to push growth amid continued global uncertainty triggered by the US tariff moves. Reserve Bank's rate-setting panel Monetary Policy Committee (MPC) will start deliberations on the next bi-monthly monetary policy on June 4 and announce the decision on June 6 (Friday). The RBI reduced the key interest rate (repo) by 25 bps each in February and April bringing it to 6 per cent. Six-member MPC headed by RBI Governor Sanjay Malhotra also decided to change the stance from neutral to accommodative in its April policy. In response to the 50-bps cut in the policy repo rate since February 2025, most of the banks have reduced their repo-linked external benchmark based lending rates (EBLRs) and marginal cost of funds-based lending rate (MCLR). "We do believe that given the rather benign inflation conditions and the liquidity ...
The weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits of scheduled commercial banks stood at 6.65 per cent in March 2025
Kumar says that the impact of reciprocal tariffs imposed by the United States (US) is mixed and there is fiscal space to support public expenditure
The MPC decided to cut the policy repo rate by 25 basis points earlier this month, after reducing the rate by a similar magnitude in the February meeting
According to market participants, RIL may have bought between Rs 7,000 crore and Rs 10,000 crore worth of government bonds during the second week of April
Rupee free to move if global forces weigh, says RBI governor
RBI MPC April meet: The monetary policy committee is expected to do a second rate cut on April 9 and switch to an 'accommodative' stance. What does this mean?
State-owned banks rushed to replenish their held-to-maturity (HTM) portfolios ahead of the auctions, further driving yields lower, according to dealers
Rajani Sinha, chief economist at CARE Ratings, said food inflation is likely to remain benign in the coming months but any weather-related disruptions could play spoilsport
Net liquidity in the banking system was in a deficit of Rs 1.09 trillion as of Monday, according to the latest data by RBI
FIT more effective than multiple indicators framework
Cut-offs rise by 7-10 bps since rate cut
With this revision, the bank's MCLR now ranges from 9.20 to 9.45 per cent
Extent of NIM compression will depend on further rate cuts
On the growth front, the need for monetary support remains high
The RBI announced the formation of the working group, to be headed by R S Ratho