Rate Cut

RBI expected to hold rates; liquidity support measures likely in December policy

Economists expect the RBI’s Monetary Policy Committee to maintain the status quo on interest rates in the December review. With growth strong and inflation low

Fed minutes show divisions as most policymakers support further rate cuts

A majority of Federal Reserve policymakers expressed support in late October for further interest rate cuts, though not all committed to making the reduction at their next meeting in December, according to minutes released Wednesday. At the same time, many officials said it would likely be appropriate to keep rates unchanged for the rest of the year," a sign of strong divisions among policymakers about the central bank's next steps. Rate cuts by the Fed, over time, typically lower borrowing costs for mortgages, car loans, and credit cards. Fed officials are deeply split over the biggest threat to the economy: weak hiring or stubbornly-elevated inflation. If a sluggish job market is the biggest threat, then the Fed would typically cut rates more. But it combats inflation by keeping rates elevated, or even raising them. Chair Jerome Powell had telegraphed the deep divisions among the Fed's 19-member interest-rate setting committee at a news conference following the October 28-29 ...

BS BFSI Summit: Economists torn between rate cut and pause in next MPC

The MPC kept the repo rate unchanged at 5.5 per cent in its October meeting, while striking a dovish tone and hinting that inflation risks were ebbing faster than anticipated

RBI may cut rates by 25 bps as inflation stays benign: SBI Research

A SBI research report has pitched for a 25 bps rate cut, saying it is the 'best possible option' for the RBI, though some other experts opined that the central bank's rate-setting panel may again opt for status quo in its bi-monthly policy to be announced on October 1. Reserve Bank of India (RBI) Governor Sanjay Malhotra-headed Monetary Policy Committee (MPC) is scheduled to begin a three-day brainstorming on policy rate on Monday in the backdrop of the ongoing geopolitical tensions and the US imposing 50 per cent tariffs on Indian shipments. The decision will be announced on October 1 (Wednesday). The RBI reduced the key short-term lending rate (repo) by 100 basis points in three tranches beginning in February, amidst declining consumer price index (CPI) based inflation. However, the central bank opted for a status quo in the August bi-monthly monetary policy, taking a wait-and-watch approach to assess the impact of US tariffs and other geopolitical developments on the domestic ..

Stock Market Close: Sensex rises 313 pts; Nifty at 25,330; bank, IT stocks lead

Sensex Today | Stock Market closing highlights today, September 17: In the broader market, the BSE MidCap ended up 0.08 per cent and the SmallCap finished 0.68 per cent higher

Asian shares rise as Fed rate cut hopes boost sentiment across markets

Asian shares mostly rose Tuesday as hopes grew, also on Wall Street, that US data reports set for release later in the week would lead the Federal Reserve tocut interest rates at its next meeting. Japan's benchmark Nikkei 225 edged up nearly 0.3% in morning trading to 43,763.96. Australia's S&P/ASX 200 declined 0.5% to 8,806.60. South Korea's Kospi climbed 0.6% to 3,238.07. Hong Kong's Hang Seng surged 1.2% to 25,949.48, while the Shanghai Composite rose 0.1% to 3,831.45. Asian markets opened Tuesday with momentum, riding Wall Street's conviction that Fed cuts are no longer a question of if but how many. Nearly three reductions are now being priced before year-end. That expectation is washing through global markets like a spring tide, said Stephen Innes, managing partner at SPI Asset Management. On Wall Street, the S&P 500 added 0.2% and finished just below its record set last week. The Dow Jones Industrial Average rose 114 points, or 0.3%, and the Nasdaq composite climbed ...

Rate cut? Status quo likely in Aug monetary policy despite inflation dip

RBI set to lower inflation projection, but GDP growth estimate and policy stance may remain unchanged

RBI monetary policy: August rate cut hopes get a fillip, says BS poll

Economists pencil in 25 bps reduction in the repo rate by December

US Fed keeps rates steady for 4th straight meeting, remains open for cuts

US Federal Reserve decided on Wednesday to keep interest rates unchanged, while indicating that reductions could still be on the table in the second half of the year

ECB cuts rates again to help economy weather erratic US trade policy

The ECB has been lowering borrowing costs as post-pandemic price pressures retreat, and recent trade-related turmoil on global markets is adding to the case for further policy easing

RBI eyes faster transmission; bankers say immediate rate cut difficult

Loans linked to policy repo rate to fall

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

Banks' net interest margins likely to decline further after RBI rate cut

Extent of NIM compression will depend on further rate cuts

Monetary easing helps, yet mkts take their cue from earnings: Gautam Duggad

Duggad says the benefits of the ₹1 trillion tax stimulus announced in the Union Budget will start to take effect from the first quarter (Q1) of 2025-26 (FY26)

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

Rate cut alone insufficient to boost lending amid tight liquidity: Bankers

Indian banks' loan growth has moderated for six straight months through December as the liquidity constraints forced lenders to focus on boosting deposits, instead of issuing credit

RBI's growth, inflation projection offers comfort to markets and investors

State of government finances, concessions offered to tax-payers, and the commitment to progress on the fiscal glide path is eminently complemented by the monetary measures makes this policy different

RBI curating the liquidity landscape for a potential rate cut this year

As the RBI takes steps to address both short-term and durable liquidity concerns, the focus now shifts to whether these measures can create the right conditions for rate cut transmission

Rate cut alone may not boost growth, economists tell RBI top brass

Say durable liquidity infusion needed to reinvigorate economy; bank CEOs to meet RBI officials today

Rate cut alone not sufficient, economists tell RBI

Bank CEOs to meet for pre-policy talk on Monday