Page 4 - Monetary Policy

Obituary: Remembering Dr Radhika Pandey (Dec 18, 1978 - June 28, 2025)

Some of her main research contributions were on household consumption behaviour, analysis of business cycles, the inflation targeting framework and regulation of the financial sector

Robust balance sheets key to boost monetary policy impact: RBI study

A reduction in policy rates can boost investment more if balance sheets are healthier, especially among small firms, finds RBI staff study in its June bulletin

MPC minutes: Frontloaded rate aimed to support growth, faster transmission

RBI's MPC voted 5:1 for a 50 bps rate cut in June to spur growth and boost credit amid benign inflation, with members supporting a shift to a neutral policy stance

RBI fines Fino Payments Bank ₹29.6 lakh for licencing rule breach

The RBI on Friday said it has imposed a penalty of Rs 29.6 lakh on Fino Payments Bank Limited for non-compliance with certain directions on 'Licensing of Payments Banks'. The Statutory Inspection for Supervisory Evaluation (ISE 2024) of the bank was conducted by the RBI with reference to its financial position as of March 31, 2024. Based on supervisory findings of non-compliance and related correspondence in that regard, the Reserve Bank said, a notice was issued to the Fino Payments Bank, advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank's reply to the notice and oral submissions made during the personal hearing, the central bank found that the charge against the bank was sustained, warranting imposition of monetary penalty, it said. "The bank breached the regulatory ceiling of end of the day balance, as applicable for a payments bank, in certain accounts on several occasions," the

RBI's liquidity measures drive short-term bond rally, widening yield spread

The yield spread between the three-year government bond and benchmark 10-year bond has increased by more than three times to 48 basis points, against 15 bps at the start of FY26

What works in central banking? Striking a balance between talk and action

The latest monetary policy has also gone for a 50-basis-point rate cut, double the anticipated reduction

RBI to end daily VRR auctions from June 11 as liquidity improves

With net banking system liquidity in a surplus and muted demand from lenders, RBI discontinues daily Variable Rate Repo auctions introduced in January

RBI policy: MPC cuts repo rate by 50 bps to 5.5%, shifts stance to neutral

RBI Monetary Policy Committee maintained its GDP growth forecast for FY26 at 6.5%, lowered inflation forecast to 3.7%

RBI's June MPC review: Terminal rate and policy tone to be in view

The six member monetary policy of the RBI has reduced the policy repo rate by 25 bps each in the two previous policy review meetings, in February and April

RBI's cautious stance could cost growth, bold rate cuts need of the hour

Given the long lags in monetary policy's impact on the real economy, too much caution could prove unnecessarily costly

RBI likely to cut rates for third time as inflation stays below forecast

A strong majority of economists, 53 of 61, in a Reuters poll expect the Reserve Bank of India's monetary policy committee (MPC) to cut the repo rate to 5.75 per cent

RBI monetary policy: Laser-focused on supporting economic growth

To give context to the significant turnaround in liquidity conditions, the RBI has purchased government bonds worth ₹5.23 trillion spread-over December 2024-end to May 2025

India's economic growth to moderate in FY26 amid global headwinds: EY

While it will continue to be one of the world's fastest-growing economies, it may have to carefully balance monetary and fiscal policies to sustain its growth momentum

Low inflation is India's tailwind, rate cuts need to watch for global risks

It provides policymakers with much-needed room to counter any global shocks

Three RBI rate cuts likely from June as inflation dips below 4% target

With inflation staying under RBI's 4% target for two months, economists expect three back-to-back repo rate cuts, starting with a 25 bps reduction in June

RBI may cut rates by up to 125 bps in FY26, says SBI Research report

SBI Research expects a 125 bps rate cut in FY26 as inflation falls to multi-year lows, with liquidity measures like OMOs and pressure on deposit rates likely to follow

Poonam Gupta takes charge as RBI Deputy Governor, to join MPC in June

Poonam Gupta will oversee Monetary Policy, Research and Financial Stability departments at RBI and joins MPC as India debates targeting core versus headline inflation

Norms on forwards likely to boost demand for 10-15-year state bonds

The yield spread between 10-year state bonds and the benchmark 10-year government bond stood at 29 basis points

Bank of Maharashtra cuts repo-linked lending rate by 25 bps to 8.80%

State-owned Bank of Maharashtra (BoM) has announced reduction in lending rate linked to repo rate by 25 basis points in line with the Reserve Bank's key policy rate. The bank's repo-linked lending rate (RLLR) has now been reduced from 9.05 per cent to 8.80 per cent, BoM said in a statement on Monday. The Reserve Bank of India (RBI) on Wednesday slashed key interest rates by 25 basis points for the second time in a row to support growth facing the threat of reciprocal tariffs by the US. The reduced rates will make loans more affordable and enhance the financial well-being of its customers, it said. Since all retail loans offered by the bank are linked to the RLLR, this reduction would benefit customers availing home, car, education, gold and all other retail loan products, it said. The home loan offered by the bank would start from 7.85 per cent per annum while car loans will be priced from 8.20 per cent per annum, which are among the lowest in the banking industry, it ...

Investing into the slowdown: Industry optimism defies weak signals

The value of new manufacturing capacity added in the last 12 months is the highest in at least 14 years