Page 4 - Monetary Policy

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

IOB reduces repo-linked lending rate by 25 basis points following MPC cut

Public sector Indian Overseas Bank has reduced the Repo Linked Lending Rate of the bank by 25 basis points with immediate effect, the bank said on Saturday. Recently, the Reserve Bank of India in its latest Monetary Policy Committee meeting decided to reduce the Policy Repo Rate from 6.25 per cent to 6 per cent. The decision to slash the rates by the apex bank comes amid looming uncertainties after last week's announcement of 27 per cent tariffs on Indian imports to the US by President Donald Trump. Accordingly, the Asset Liability Management Committee in its meeting held on April 11 has decided to pass on the rate cut to the customers by reducing the Repo Linked Lending Rate of the Bank by 25 basis points from 9.10 per cent to 8.85 per cent with effect from April 12, 2025, the city-headquartered bank said in a press release on Saturday.

The pilots for MuleHunter.AI have been successful, says Swaminathan

In December 2024, RBI launched MuleHunter.ai, developed by the Reserve Bank Innovation Hub, to help banks reduce digital fraud

PSBs share in loans rises sharply in FY25: Monetary Policy Report

State-owned lenders use SLR surplus for disbursements

RBI MPC may cut repo rate again: Key terms, projections and what to expect

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?

How much easing could Reserve Bank of India signal in the April MPC?

To start with, growth and inflation forecasts will be in focus as the RBI will also publish their Monetary Policy Report (MPR) along with the MPC statement

Banks pitch SORR as overnight benchmark ahead of RBI policy meeting

The central bank has been conducting a series of interactions with banks, seeking feedback to tide over the liquidity crunch in the banking system and improve monetary transmission

MPC likely to trim rate by 25 basis points in April meet: BS Poll

The RBI will announce the review of the policy meeting on April 9

RBI likely to cut rates in April MPC meet as inflation drops below 4%: UBS

Swiss investment bank UBS believes an accommodative monetary policy could help India sustain growth amid rising global uncertainties and trade disputes

Monetary policy: A rate cut, and much more once the rupee stabilises

The RBI reduced its policy repo rate by 25 basis points (bps) to 6.5 per cent in the first rate cut since May 2020, when there had been a 40-bp reduction to 4 per cent amid Covid

MPC should wait and watch as global risks complicate rate decisions

Global uncertainty demands caution on monetary policy

Task cut out for MPC after Budget's consumption boost as RBI decision nears

But monetary policy decisions are complex and there is merit in assessing the "right time" while weighing the cost and benefits of such moves

RBI to cut rates to 6.25% in Feb, followed by one more cut next qtr: Poll

In its Feb 1 budget, the government is not expected to increase infrastructure spending, a main driver of growth in past years, leaving the onus on the RBI to revive the $4 trillion economy

RBI rejigs deputy guv portfolios; Rajeshwar Rao takes monetary policy dept

The government has already started the process of finding a successor for Patra

Modest growth raises concerns about sustainability of market rallies

Next time the GDP numbers are announced, the slowdown could be attributed to global economic weakness, rising oil prices, or another drop in domestic capex